People I see leaving the mainstream superannuation system to an SMSF environment are usually disillusioned in some way. Either they have had poor advice in the past, or suffered loss in the GFC, or they want to stop money leaking out of their fund by way of advisor commissions. Of course, some make the move because they see a property opportunity.
But regardless of the reason for moving to an SMSF, clients often say that their first priority is to have safe custody of their own money.
However, that in itself doesn’t lead me to the conclusion that they are risk averse. Although it can look that way when there is so much money sitting in cash, I think it is more about not knowing what to do next.
If you set up an SMSF and hand off the administration to an external service, it is not a job done. It’s far from finished. All you’ve done is to have acquired a superannuation vehicle and a service contract.
The missing key is that there’s no one in the driver’s seat! Addressing this anomaly is critical to the success of most SMSFs because there is usually a marked lack of in-house expertise.
The areas I see that are typically poorly understood are:
Investment, in particular documentation, risk and asset allocation
Risk management strategies, in particular structural and insurance protection
Estate planning across a wide range of issues
Effective use of the Transition To Retirement strategy
Meeting the requirements of Exempt Current Pension Income
Property purchase issues, particularly when borrowing is involved.
I find that these are the areas where trustee support is needed most. This is where an experienced SMSF financial advisor can work beside you as a technical advisor, mentor and educator to help you achieve the retirement you want.
At Gary Weigh & Associates, this is our specialty.
Adopting a team approach enables you as trustee to bridge the expertise gap and effectively manage your new _retirement investment business. _You can feel confident jumping into the driver’s seat and embracing all of the opportunities offered by the SMSF concept.
Of course, the other major aspect of managing an SMSF is being able to interact confidently with all of the external professions relevant to running an SMSF, including:
Once again, we are very used to meeting with these professionals and instructing them on our clients’ behalf. We would be pleased to extend the same service to you.
With Gary Weigh & Associates on your management team, you will have the leverage in both knowledge and expertise to be able to manage all the functions of your SMSF, particularly the high payoff activities that turn an empty vehicle into a retirement performance machine.
This is general advice only. The purpose of this article is to provide you with education in SMSF management, which includes many difficult areas. As a licenced financial advisor, I strongly urge you to seek personal advice based on your individual goals, needs and circumstances, before making any decision about self-managed superannuation.