Suite 8 / 260 Auburn Road, Hawthorn 3122
Phone: 03 9214 4100
Fax: 03 9818 6008
enquiries@trumpetfinancial.com.au
 
 
eWombat Search
  LATEST FINANCIAL NEWS
 
Hot Issues
Australia’s $4bn Super blackhole impacting self-employed most
The proper help can be a benefit - age pension
SMSFs on ATO’s radar in cryptocurrency review
Limited recourse borrowing arrangements - LRBAs
What a financial planner does to help.
Goodbye to ad-hoc portfolios
Wanted: More voluntary super contributions
Australia by the numbers – May Update
Federal Budget 2019 - Overview
How the 2019 Federal Budget affects you
The problem with getting to 53 years of age.
Paying for health care in retirement
Personal super contributions and the 10% test
What investors can expect as key moves affecting markets await
ATO flags PAYG obligations for SMSFs with legacy pensions
Don't just plan for retirement; Plan for your life
Consumers misunderstand types of advice
Budget Time - How's Australia going?
When super isn't compulsory
Investors brace for Brexit - deal or no deal
ATO identifies SMSF contravention red flags
Extra website resources and tools is one way we offer you and your family more.
Tax and estate planning traps flagged with pension restructures
A checklist for a healthy financial year
High-risk LRBAs, TBAR on the ATO’s radar this year
All you need to know about how Australia is going.
Royal Commission report makes super fee recommendations
Four tips for boosting your super balance
New Year resolutions, New Year strategies
Articles archive
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 3 of 2016
Articles
The gymnastics of keeping your portfolio balanced
Market Update – August 2016
Stop!! Don't do a paper Budget, use our online budgeting tools instead.
Advisers the key to retirement stability, research shows
The toughest tasks for self-managed super
Lawyer warns on ‘adverse’ death taxes with insurance
Don't get distracted by super changes
A savings mirage?
Market Update - July 2016
The three biggest economic issues likely to affect markets in 2016
SMSFs warned on looming property ‘tough times’
Diversification counts when uncertainty beckons
Strong economic data stablises markets
Starting a super pension in 2016-17?
Market Update - June 2016
ATO extends looming SuperStream deadline
ATO's deadline for review non-arm's length LRBAs extended
A paradoxical relationship: The self-employed and super
Fresh SMSF documentation warnings surface
The toughest tasks for self-managed super

 

What are the hardest aspects of running your self-managed super fund (SMSF)?



       


 


Is it the paperwork, all of the investment rules or the fundamental challenge of choosing where to invest your money?


If you named choosing investments for your SMSF as the toughest task, you would be far from alone.


A comprehensive survey for the Vanguard/Investment Trends 2016 Self-Managed Super Fund Reports, released during the past week, asked SMSF trustees to list the hardest aspects of running an SMSF. Their main responses included:


  • Investment selection (43 per cent). This percentage has risen over the past year as SMSF trustees, along with other investors, attempt to come to terms with the low-interest environment and widespread expectations for more challenging and volatile investment conditions over the medium-to-long term. (See Vanguard's economic and investment outlook, Australian edition, from our Investment Strategy Group.)
  • Administration and regulation (40 per cent). This includes having trouble keeping track of changes in the rules.
  • A lack of time including to review and plan for their SMSFs (24 per cent).

Interestingly, 22 per cent of respondents to the survey did not find any aspect of running their fund difficult.


The finding that more SMSF trustees have difficulty choosing investments would also partly explain another finding from the survey that a large proportion of SMSFs recognise that they have unmet needs for advice.


An estimated 255,000 SMSFs – out of 572,000 funds at the time of the survey – had unmet needs for advice. This is the largest number recorded by Investment Trends over the years.


"Advice needs most often relate to retirement," the report comments, "though more [SMSFs] are citing investment-related advice gaps."


For instance, an estimated 146,000 SMSFs have broad unmet needs for advice on retirement strategies while 139,000 have unmet needs for investment advice. And an estimated 100,000 funds have unmet needs for advice on tax optimisation.


Drilling down on more specific unmet needs for advice, SMSFs recognise their need for advice on inheritance and estate planning (an estimated 61,000 funds), SMSF pension strategies (57,000), age pension and other social security entitlements (55,000 funds), investment strategy/portfolio review (52,000), identifying undervalued assets (51,000), Exchange Traded Funds (46,000), offshore investing (43,000), trying to ensure members don't outlive their savings (42,000 funds) and protecting assets against market falls (39,000).


The finding that 44 per cent of Australia's SMSFs recognise that they have unmet needs for professional advice is extremely positive. This should lead to more fund trustees working with advisers to set appropriate asset allocations for their diversified portfolios, checking on the adequacy of their retirement savings and setting suitable retirement income strategies for retired members.


 



By Robin Bowerman
Smart Investing 
Principal & Head of Retail, Vanguard Investments Australia
15 August 2016




9th-September-2016
Trumpet Financial Pty Ltd ABN 11 443 516 384 Corporate Authorised Representative (No 327756) of Aon Hewitt Financial Advice Limited AFSL 239183 ABN 13 091 225 642
Registered Address: Level 33  201 Kent Street, Sydney NSW 2000 | Sitemap | Disclaimer | Privacy Policy | About Aon Hewitt Positioning