Self Managed Super Funds

Our Services for SMSF Trustees
who want Real Financial Advice

Our Services for SMSF Trustees who want Real Financial Advice

A self managed superannuation fund (SMSF) is a fund in which the members actively participate in the fund’s management. The members will be the trustees of the fund and will have full responsibility for the fund’s management, investment and general administration functions.

Some reasons why people use a SMSF include:

• control - choose investments such as commercial property, direct shares and managed funds
• can have lower cost than retail funds (if large balances of super)
• estate planning opportunities (pass on large assets to next generation without CGT)
• can own certain assets not permitted in retail super (e.g. business real property; artwork etc)

We strongly support the ATO recommendation that people have at least $200,000 when setting up a SMSF.

SMSF trustees have onerous responsibilities including administration, investment strategy and compliance. Ignorance of these responsibilities is not excusable – trustees are ultimately responsible for non-compliance.

The ATO has flagged an increase in its audit activity because a recent survey of 800 new trustees showed more than 50% were not considered knowledgeable.

From now on, the ATO will be asking trustees ongoing disclosure questions when they submit annual reports, including whether

• the SMSF had/has financial involvement with related parties
• the SMSF has lent money to members or their family
• investments have been undertaken on an arm’s length basis
• the SMSF has allowed members access to assets and money before retirement
• non-cash contributions (known as ‘in-specie’ contributions) have been made to the SMSF
• the SMSF has engaged in activities of selling goods and/or services

How can Archimedes Financial Planning help SMSF trustees?

Most SMSF trustees are very confident in their ability to make investment decisions and get an above-average return without input from a financial advisor.

We have reviewed the investment strategy and returns of SMSFs that have not had financial advice – a significant proportion of these SMSFs have not performed as well as trustees believed.

The main investment failings were not being appropriately diversified or being exposed to certain out-performing asset sectors.

Archimedes Financial Planning can assist trustees to develop leading edge investment portfolios, using the Efficient Frontier portfolio approach. While this has a cost to implement properly, it also has a benefit. Smart people know it’s not the costs that matter, but what you have after costs.