Sent: 08-12-2010 09:28:03
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SMSFs to decline?
a. Predictions about the size of the 2025 super market
Recent media reports about some new research into the superannuation sector predict that the SMSF sector will decline in percentage terms compared to the other market segments by 2025.
According to the research the big winner in the super space will be industry funds.
Rice Warner who made the predictions argues that many people who have SMSFs will walk away (or die) due to old age.
These sort of predictions are always fun to look at but how many of them are accurate?
There are a few reasons why I think this prediction about SMSFs might be wishful thinking:
- 2025 is only 15 years away
- Over 50% of all people setting up SMSFs at present (about 12,000 per annum) are aged under 55
- These people are unlikely to have stopped running their SMSF once they have started it over the next 10 years
- At present less than 1% of SMSFs are closed down each year
The professional super sector has never understood SMSFs. They simply cannot see why collectivism is not attractive for a growing number of superannuants.
Regrettably for them they are learning the hard way as the growth of SMSFs can only now be slowed by Government decree. There are an average of 3,000 SMSFs per House of Representative's electoral boundary. This is enough to sway an election. No doubt the politicians have noticed this or if they haven't then I hope someone points it out to them!
b. Adviser remuneration
Last week I wrote an article in The Australiam about adviser remuneration. You can read it here: http://www.atcbiz.com.au/r.php?r=f0fwge0
This week I continue of the same theme and talk about the impact of percentage fees. You can read that article here: http://www.atcbiz.com.au/r.php?r=64qd7q4
I would be fascinated to here your thoughts on these important subjects.
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
For details of the changes made from version 2 to version 3 visit: http://www.http://www.atcbiz.com.au/r.php?r=7aj5d3d
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
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