Why Setup Your Super SMSF – Latest Stats

The number of SMSF’s being created has been consistently increasing, the latest growth statistics show an increase of 31% in the last 5 years, (see ATO-Statistics), some reasons are:

1. Control – with volatile markets people have looked to gaining more control by setup their own Super SMSF.
2. Cost – the increasing administration costs of these large super funds
3. Smaller/negative returns – arising from these funds where your investment mix was not managed or adjusted during such volatility in the market as we experienced with the Global Financial Crisis.
4. Flexibility – ability to purchase investments you understand whether it be shares you know of or property in your area.
5. Gearing – Taking advantage of the recent changes allowing your to borrow for property investment purchases enabling your to increase your investment base.
6. Access to Information – with the web, access to information has allowed investors to take control of their own investment decisions.
7. Asset Protection – SMSF’s can be one of the most safest ways to protect your funds from creditors, to read more <click here>.

There are also reasons to choose a public offer fund rather than a SMSF, we will not go into the reasons here but we recommend anyone wishing to obtain advice as to whether they should use a SMSF or public offer fund that they seek independent financial advice. Interestingly those from the public offer funds argue that Accountants and Planners poorly advise clients to create their own SMSF’s, however a report issued in July 2012 by  SPAA & Macquarie “SMSF Generations Report” stated that 42% of people set up their own fund without taking any advice, which supports the view that SMSF’s are growing in number because of the free will of the SMSF trustees and members.

There are laws under FOFA that are proposed which may impact on the role of who can recommend the formation of a SMSF, at time of writing this has been postponed to 1.7.13, although participants are not prevented from making changes to comply with the proposed laws.