Article by David Saul, of Saul SMSF.
There are sometimes offers by businesses for free SMSF set up and/or free annual administration. Indeed there are also cheap offerings for SMSF Audit. Our firm comes up against these frequently.
My response is to ask, “What do you want from your SMSF?” I believe the answers include,
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- Safe secure investment of my retirement savings
- Separation of my retirement savings, from all other investments I may have
- Tax effective investment of my retirement savings
- A Fund that complies with all relevant government legislation
- Answers and advice that are not influenced by the likely commissions the adviser may earn
- An opportunity to meet to discuss the administration of your fund
- Comfort that your personal, investment and taxation data are kept securely within Australia
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Then I ask, “What requirements will the other provider impose on you?” Sometimes this includes,
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- Monthly management fees
- Annual fees after the first free 12 months
- A requirement to invest Fund assets with associates of the company
- Payment for Financial Planning advice, which may be above normal, or may not include meetings with the Planner
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Then I suggest you turn around the question and invite the client to ask you “Why should I have you help set up and administer my SMSF”? Depending on the circumstances, the potential answers then are because…
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- I know your whole financial situation (this may include the history of the business, employment, family changes, movements in loan accounts, you may hold Capital Gains Tax records, etc.)
- we have built a relationship over x years, you know the people in my office
- I am involved with your other financial transactions, including working with your bank
- we are talking about $x million of your funds which we hope one day to grow to $y million, we both want to protect this in every possible way, including from attack by the ATO
- I have met your solicitor and family members; we have discussed issues such as Binding Death Nominations and other matters required to professionally manage your SMSF
- I always act in your best interests and work to earn your trust
- I am bound by the ethical rulings of my professional associations, specifically ….
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Most importantly, SMSFs offer the opportunity to be in control of your retirement dreams, so working with an accountant and auditor who oversees this process professionally is so important to ensure your financial future is well-managed and secure.
Saul SMSF is a specialist SMSF audit practice within Australia – 1300 551 261 – www.saulsmsf.com.au
© David Saul, Saul SMSF, www.saulsmsf.com.au
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