“My Business is my Super” say most Small Business – but what is the risk?

Most small business plan retirement based on their business to sell – I have provided administration and bookkeeping to many small businesses for over 10 years and confirm the strategy for most has been that their “business will be my super“. They only put super aside if they have a company, and compulsory super as employee/director.

It has concerned Jim and I because as Jim said “the risk of not being able to sell a business, is greater than the risk of having no super or even low returns in managed super. To not have a back-up plan by having a separate super fund is very risky in deed.”

That is why Jim and I have separate super (in our own self managed super fund (SMSF) with our wives) and now work on offering solutions to others – such as setting up a self managed super funds, and learning how to identify companies with superior management – key performance indicators (SMKIs). Conscious Investor and Stock Doctor (no affiliation) are examples of great tools to easily find these “SMKI’s” as Jim calls them. It is not as hard when you have Strategy, System and Support.

Alex Dunnin reports in The Financial Standard:

“Most small business owners are unhappy with their retirement savings plans and are increasingly seeking advice, even from financial advisers, reveals research from accounting group Bird Cameron.

The Bird Cameron ‘Think Big’ study of small business attitudes found that the primary superannuation problem for SME owners is their very low superannuation savings adequacy, with 93 per cent concerned they have too little superannuation savings.”

The study also confirms that SMSF is increasingly the preferred choice (approx 50%) with SME owners. “The desire for independence continues to be the most important reason why SME owners started their business,” noted Bird Cameron.

In addition, there is a growing trend BACK to ADVICE from financial planners and accountants. Even better is to get support and learn the basics and have the administration and compliance handled for you.

A Strategy – to grow retirement assets, System – Self Managed Super, Support – Administration and Compliance taken care of, and learn to “self advise” – know what makes a strong company with superior management key indicators (SMKIs). See About Us.

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About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit will SET UP your SMSF and provide investment education for a better result. We take care of all your administration, accounting, ATO lodgement and audit of SMSFs, working with you and your advisors. If you want advice we can arrange one of our recommended advisors and accountants to meet with you, as we do not give advice, but take instruction only. Take control of your super, including property shares and other assets. Learn how to be your own advisor - make better decisions - by being mentored and coached to invest your own super wisely and strategically by qualified partners. Book to come to an event to find out more, or - Call us 0407 361 596, no obligation FREE strategy call.
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2 Responses to “My Business is my Super” say most Small Business – but what is the risk?

  1. Lindy Asimus says:

    If the business is their business… it might be time to start running it like it is an asset and not like a super fund without contributions. 😉

    • You are so right Lindy – see the business as an asset – something of value that you plan to reap the reward for down the track. Thank you for taking the time to comment!

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