Last week I was chatting to a client who is a recent convert to self managed super. Mid way through our conversation he laughed and said to me; “You know, every time I see those Industry Super ads on the TV I feel sorry for the poor members. I don’t have to waste my money advertising my fund!”
It was a different slant, but unfortunately very true. Recent APRA statistics illustrate the astounding growth in SMSFs to the point where they now account for over 30% of total assets in superannuation. This has largely been achieved by “average” people electing to set up self managed super funds, rather than as a result of advertising campaigns or compulsion.
There is serious money in SMSFs.Total assets are more than $750 billion with an average fund balance of $1.2 Million and a total of 596,000 SMSFs holding these assets.
For those who do not have a SMSF, the key takeaway is that now they are very mainstream, “common garden” in fact. A wide range of people have come to appreciate the benefits of self managed super, namely control and transparency. Also, when things become popular, competition invariably forces costs down and that is what we have seen with SMSFs.
If you are looking for more information on SMSFs go to Self Managed Super.
Better still, talk to us. We have many clients who enjoy the benefits of self managed super and our advisers can provide the right advice to get you started.
