Advisers shy of SMSFs
Financial planners are steering away from self managed super funds (SMSFs), due to a lack of confidence about advising on the sector, according to Strategist Group director Grant Abbott.
Abbott says financial planners don't have sufficient education in SMSFs and therefore are uncertain of the benefits for clients.
"There are too few financial planners having the confidence to offer SMSFs to their clients," he says.
"Sure it's not for all clients but there are certain clients that are looking for a tailored strategy and want a more customised fund."
Abbott says financial planners should take the plunge to increase their knowledge of self managed super, so not to disadvantage clients.
"SMSFs are easily implemented and strategically easy to use due to the fund's flexibility," he says.
"And once mastered, financial planners will experience immense business opportunities."
Despite the lack of confidence, Abbott says the SMSF industry is booming.
The number of funds and funds under management has nearly quadrupled in the past six years to 204,000 accounts with $64 billion under management.
Rice Kachor Resarch expects the industry to be worth more than $204 billion under management by 2009.
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