Our experience tells us that clients who run their own self-managed fund are often fiercely independent.
This maybe because they have received poor financial advice in the past or had a bad financial experience that has led to them taking control over their superannuation. However being the trustee of a self-managed fund leads to great responsibilities and the penalties for non-compliance can be severe.
Trustees are often not sure if they are taking advantage of the opportunities within the fund such as maximizing contributions and commencing account based pension. They may also not be sure of the estate planning implications of these on death or incapacity.
To provide advice on this often requires a thorough understanding of the member’s personal position which many accountants don’t know or are not allowed to provide advice on. We can assist to review your fund’s position and provide advice in these areas.
Management of the fund’s assets is another area where we see trustees struggle, often ending up with a random selection of direct shares and term deposits. This leads to the funds lacking diversification and taking unnecessary investment risk.
Another by-product of this approach is the administration time involved in managing so many investments and dealing with correspondence with share registries. This also increases the fund’s accounting costs. The market place has evolved significantly in recent years and there are cost effective solutions such as exchange
traded funds, listed investment companies and MFunds that help diversify and reduce the administration of your fund’s investments. They can also provide targeted exposure to various investment strategies.
We can provide asset consulting advice on these options.