Poor financial advice related to starting self-managed super funds (SMSFs) could be putting some Australians’ retirement savings at risk. That’s the message from ASIC in a recent report which has raised concerns that SMSFs are not suitable for everyone. As bestselling author and columnist Bec Wilson noted in the SMH, with ‘cookie-cutter’ advice the risks, complexity and costs of SMSFs are often overlooked. Many advisers are doing the right thing and providing quality, tailored advice, but if you’re considering switching to an SMSF, make sure you understand what’s involved. Read more here: https://lnkd.in/g_nQcdxD General advice only. Issued by Host-Plus Pty Limited. Consider the PDS and TMD on our website before deciding.
Author 'How to have an Epic Retirement', Educator/Course Creator for Pre-retirement, Speaker, Columnist SMH/Age, Host of “Prime Time with Bec Wilson” podcast; Entrepreneur; GAICD
Finally, there’s proof. The SMSF and “advice” model that so many people think is the ultimate investment strategy? It’s not. ASIC’s new report confirms it – the money does grow, just not so much for the client. It’s growing for the advisers and spruikers who’ve convinced everyday Australians that SMSFs are the ultimate strategy. The usual story goes like this: → You find an adviser, often through the internet, juicy ads or slick promotions (or 'masterclasses') → You’re told to set up an SMSF. → Roll your super out of a top-performing fund that’s been delivering 8–10% returns (sometimes more!). → Buy a property or move your money into investments that are managed by a related asset management company (check the parent company of the advice business - seriously). → Then sit back and “watch your wealth grow”. And it does – plenty of weath for the advisers, property developers, and asset managers behind it (and the adviser who is often a shareholder in the asset management company if you follow the trail). In today’s papers I’ve done a deep dive into what’s really going on inside the SMSF machine – and why it’s time we stopped calling this a desirable strategy. In fact it's time we grew the courage to say that cookie cutter financial advice of any kind isn't really quality personal advice at all. This one is a long, detailed piece - and there's no paywall! Everyone contemplating an SMSF should read it. (Link in comments)