Sent: 12-10-2010 11:03:03
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SMSF Admin Fees
Last week Choice magazine published research about what annoys Australians.
The survey's population was taken from Choice's membership. This population was were asked to rank 32 everyday annoyances and rank them 1 to 10.
Anyway coming in at annoyance number 14 was "Poor advice from financial planners."
You can view the list of 32 items here http://www.atcbiz.com.au/r.php?r=1n99tth
After looking at the list I'm sure there are other items you could select. Top of my list would be automated telephone systems. You know the type - Press 1 for x, Press 2 for y, etc.
Next week my article in The Australian will deal with a question I was asked about the future popularity of SMSFs. I was asked if SMSFs will fall in popularity given that the concessional contribution caps have been halved.
This is a very good question.
In my answer to this question I compare the management fees of SMSFs based on data released last year by the Cooper Review. It is true that SMSF fees are very low.
This is to be expected because these funds do not have to pay the top heavy and expensive management and distribution expenses of retail and industry super funds. SMSFs also don't have to pay for a professional trustee.
Another area that SMSFs also have lower costs is in data capture and analysis. At present most SMSFs only have their transactional data analysed once per year.
This lack of data analysis causes significant problems for SMSFs especially when problems are not identified many months after they have occurred.
I think in time accountants will realise that they need to be more intimately involved in their client's SMSFs throughout the year. When this happens it will be interesting to see if it increases the cost of administering these funds to something more like that charged by larger funds.
Finally please consider purchasing a copy of "A How To Book Of Self Managed Super Funds". You can look at the contents page at the following link: http://www.atcbiz.com.au/r.php?r=0mjd6ne
The 3rd edition was released a few weeks ago.
For details of the changes made from version 2 to version 3 visit: http://www.atcbiz.com.au/SMSFBookAmendments.pdf
There have been many changes to this book. Version 3.0 contains over 30 pages of new material.
This update has taken longer than I would like however I have been delayed due to a frustratingly steady stream of political policy announcments, review documents and the release of various ATO documents.
Two purchase options are available - once only subscription - $55 inc GST - or an annual subscription will gives you access to all the updates made throughout the year ($120 inc GST). The book can be purchased at the following link: http://www.atcbiz.com.au/r.php?r=5a4agqb
This email is general in nature only and does not constitute or convey specific or professional advice. Legislation changes may occur quickly. Formal advice should be sought before acting in any of the areas discussed. Be aware that the information in these articles may become innaccurate with time. Responsibility is disclaimed for any inaccuracies, errors or omissions. Particular investments are neither invited nor recommended and hence this publication is not "financial product advice" as defined in Section 766B of the above legislation. All expressions of opinion by contributors are published on the basis that they are not to be regarded as expressing the official opinion of any other person or entity unless expressly stated. No responsibility for the accuracy of the opinions or information contained in the contributor's articles is accepted by any other person or entity. Copyright: This publication is copyright. If you wish to reproduce this article you require a license, which can be purchased here, to do so.