One third of SMSF’s not receiving advice have significant compliance issues and risk the high cost of equally significant penalties. That’s a huge statistic.
The main contraventions relate to administration - failure to document the investment policy, report keeping and in-house assets.
Word of mouth from friends and relatives played a significant or greater role in the decision to set up an SMSF than recommendations received from professional advice.
In the 1990s, around 60 per cent said they set up an SMSF because their accountant told them to do so. Today only about 16 per cent of those who set up an SMSF between 2012 and 2014 said they had [done so] because as a result of professional advice.
Currently around 24% of those who intend to set up an SMSF said they want to do so because a friend recommended it.
So many SMSF Trusts have been set up with no real or good advice and understanding of the many pitfalls and penalties that are triggered if you don’t know what you’re doing with such a complex structure.
DIY? I don’t think so. Would you build your own house if you have never picked up a hammer?
With the greatest area of need being planning for retirement and the main focus around the age pension and estate and succession planning it’s a huge area of untapped advice with the potential for equally huge costs and loses if you don’t know what you are doing.
Don’t risk the high cost of failing to seek advice for your SMSF. Call Segue now on 03 9509 1599.