The primary goal of a self-managed super fund (SMSF) is to provide benefits to its members when they retire and, to an extent, death benefits in the event of an untimely demise. While the idea of managing your fund sounds exciting and liberating, the task can turn out daunting, especially to the inexperienced trustees. Simplify your retirement planning with SuperConcepts full-service SMSF administration.
Common Trustees Problems
Trustees are responsible for managing their SMSF, unlike retail or industry funds. You get to choose your investment portfolio and decide when to change directions or how to change strategies based on perceived risks.
But with this liberty comes the responsibility of filing taxes, appointing a licensed auditor, ensuring compliance, valuing funds, updating records, and reporting to authorities. Since self-managed super funds are regulated by the Australian government, you are to keep up with the administering and reporting duties.
Poor fund performance and compliance issues are two common problems of trustees. In a report on fund performance by Industry Super Australia in 2016, SMSFs with assets less than $50,000 experienced a significant loss of 16.7 per cent. Meanwhile, SMSFs with $200,000 to $500,000 assets did not suffer a loss but had no reported increase in return.
Smaller SuperConcepts SMSFs suffer more because the high compliance and administration costs consume their returns. Add to that, the trustee’s investment decisions affect the fund’s diversification strategy. Approximately 60 per cent of SMSFs with less than $100,000 assets maintained a less diversified portfolio.
SuperConcepts SMSF Administration Benefits
While the losses are real and massive, they should not hinder you from investing in your retirement. There are many successful stories of trustees who managed to grow their hard-earned money into an appealing retirement fund. A strategy that always works is a collaboration with an SMSF full-service administration platform that makes an investor’s life easy.
Take SuperConcepts SMSF suite solutions, for instance. It offers trustees a web-based platform that is accessible anytime, anywhere. Now, you do not have to worry about late filing when on vacation. You can log into the SuperConcepts web portal in your device and manage your fund in a few clicks.
The company’s dedication to its clients is evident in its continuous offering of educational materials (e.g., newsletters and seminars) that keep you informed of the latest updates in compliance. If you previously find it hard to understand the SMSF rules and overwhelming figures, then you ought to join the growing SuperConcepts community.
Manage Your Investment Risks
Like all investments, the key to fund growth is risk management and good foresight. You can enjoy both benefits when you partner with an awarded platform solution like SuperConcepts. The team takes care of the day-to-day running of your investment affairs. You can then focus on more essential tasks. With the administration under control, you have plenty of time to learn more about smart fund strategies and consequently make better decisions.
Having enough funds to keep you going when you retire is one of the essential components you need to prepare. With no steady income that pours in after your retirement, the pension that you receive might not be enough, especially if you have to deal with health issues. Hence, it is advisable to start investing early so that your investment has enough time to grow.
It is easy to lose track of your fund progress when you have work, family, and other life activities that occupy most of your time. Protect your hard-earned money. Invest in a value-adding SMSF Administration platform that saves your time, improves your fund performance, and helps you enjoy retirement benefits.
Author Name: Paul Sebastian is a blogger and writer. He loves to express his ideas and thoughts through his writings.