SMSF’s the Largest and Best
Trish Power at SuperGuide.com.au highlighted the following which has been on my draft list for a while. Not only do SMSF’s hold the most funds they also outperform all other fund types. SMSF’s are providing interesting insights into whether individual investors can outperform institutions.
The money held in DIY super funds, officially called self-managed super funds (SMSFs) exceeds the super money invested via retail funds (28.4%, $306 billion) industry funds (17.7%, $191 billion), public sector funds (14.1%, $152 billion) and corporate super funds (5.1%, $55 billion) according to figures released byAPRA on 24 September 2009. APRA stands for the Australian Prudential Regulation Authority, the prudential regulator of all super funds, with the exception of DIY super funds, which are regulated by the Australian Tax Office.
Trish has some useful articles on her site. Though she could call out companies looking to rip people off . Consider this advice Trish gave to a couple with $600,000 in super assets who got quotes of $8,000 and $1,500 for setup costs. She pointed out the 1.3% cost for $8k, but then said
The difference in quotes is huge, but which service is the better option really depends on what you get for your money. Ask each adviser to itemise the following:
- Advice component (if any).
- Establishment costs (including trust deed).
- Running costs, such as administration, reporting (including annual audit) and lodgement.
- Any other costs that are included in the fee.
- Any other costs that may arise that are not included in the fee.
Come on Trish $8,000 is ludicrously high for setting up a SMSF. It’s gouging. On top of which if someone is going to charge you $8k for setup then the annual fees are also going to be way too high. You get what you pay for, which for $8,000 is ripped off.
If you want to setup your own DIY super fund then take ownership. Educate yourself first, perhaps with one of Trish’s books.
Here is my take on setting up your own self managed super fund.
Related posts:
Leave your response!