“More and more people are seeing super as part of their family wealth,” Raiss told online news resource InvestorDaily.
“We’re seeing that growth in what I call the ‘enduring family super fund’, that fund which is family-oriented but the enduring part is the bit that allows them to move their balances into the next generations. You can’t do that with retail funds or industry funds,” he said.
With the baby boomers now moving into retirement, he added, we are seeing people retire who have spent much of their lives in a two-income family, and are retiring with much higher balances than their parents did.
“There will be a growing trend … of super being part of ‘family wealth’. The ability to create an enduring family super fund will become a more enticing reason for people to consider SMSFs of the enduring family ilk as opposed to ‘DIY super’, which I never really liked,” Raiss said.
“By the time you have balances of $300,000, $400,000, $500,000 and there are cost savings on flat costs … we’re certainly seeing that trend (to family wealth).”
A shift to a focus on family wealth will also mean there will be more and more pressure to increase the maximum number of members allowed in SMSFs from four, Raiss continued. With blended families and larger families, more clients are having to manage multiple SMSFs.
According to Raiss, the accountant’s ability to take a holistic approach in which they can do super, accounting and finance in the way that Chan & Naylor does is “very healthy” for the industry.
“It allows a person to see all the pieces of the jigsaw puzzle – more of the pieces will fit together,” he said.
