Do you use others for advice with your SMSF decisions? A recent survey shows that more are, and they are looking for mentors and relationships (just as SuperBenefit provides) –
A survey that reveals self-managed super fund trustees are more likely to seek help highlights future opportunities for small businesses, according to the association behind a new report.
Released yesterday, the Intimate with Self-Managed Superannuation report, prepared for nabtrade and the SMSF Association by Core Data, reveals a trend towards a new breed of SMSF trustees who are more open to advice when it comes to managing their funds.
It follows recent reports showing a trend towards small business owners choosing SMSFs because they wanted more control over their future.
The report describes three types of SMSF trustees and labels them ‘controllers’, ‘coach-seekers’ and ‘outsourcers’ based on their willingness to seek outside help.
It found controllers comprise around 39% of trustees and outsourcers make up 15%, while the biggest segment was coach-seekers at 46%.
SMSF Association chief executive Andrea Slattery said the findings represent a change in the behaviour of SMSF trustees.
“The early movers in SMSFs were the controllers, who largely took up SMSFs as a DIY alternative to the APRA fund sector in search of greater control and flexibility,” Slattery said.
“While controllers continue to be the biggest drivers for SMSF establishment, coach-seekers and outsourcer trustees now present the biggest growth opportunity for financial advisors given their amenability to financial advice and recognition of the viability of the vehicle as an advised proposition.”
…. “What we’re seeing is as businesses are changing, people are becoming more confident and more engaged in professional services and advice and changing their business models at a more specialist level,” she says.
Slattery says while the report recognises trustees that are controllers are still interested in information, the new form of trustees coming in are “really wanting to have mentoring relationship, seeking to have people to learn and grow with them”. Renee Thompson writes further at Smart Company
This is the mentoring and support relationship that SuperBenefit provides – call for a FREE chat about how we may help you.
And Kate Cowling writes at Smart Investor
Self-managed super fund investors are increasingly handing over the reins to advisers in the midst of low cash rates and barriers to other defensive asset classes, a report shows.
Despite the name “DIY investors”, a growing cohort are relinquishing the control element – which was heavily marketed as a key tenet of self-managed super funds.
They are outsourcing part or all of the investment decision-making to professionals, such as financial planners and accountants, showed research by the SMSF Association and nabtrade.
The proportion of funds outsourcing investments has more than doubled from 7.3 per cent in 2012 to 15 per cent in 2014, the research showed.
Meanwhile, those after advice from advisers on how to invest dropped from 54 per cent to 46 per cent.
The segment of self-managed fund investors who made their investment decision alone remained fairly static at just below 40 per cent.
Most selfies still followed their own research in deciding how to invest, but the trend over three years showed the appetite for advice was rising. In 2012, more than 61 per cent made their own calls on asset allocation. That number now sat at 51 per cent.
On the advice side, 39 per cent said they decided on asset allocation based on advice from advisers last year, compared with 30 per cent in 2012. Part of the reason for the shift was the desire for advice on how to invest when cash rates were low, the research showed.
More than two in five held more than 10 per cent of their portfolio in cash, compared with about a third in 2013. The key reason was they were “waiting for a better investment option”.
But the low cash rate also drove reallocation to Australian equities and other non-traditional asset classes, with 49 per cent looking to alternatives to push up returns.
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