Advisers shy away from 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 di-rector Grant Abbott.
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 di-rector 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 flexi-bility,” he says.
“And once mastered, financial planners will experience immense business opportuni-ties.”
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.
Recommended for you
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
