Retirement
Claims SMSF trustees are ‘ships without rudders’
One analyst has suggested the majority of SMSF trustees lack the skills and knowledge required to make appropriate investment decisions and are vulnerable to misinformation.
Claims SMSF trustees are ‘ships without rudders’
One analyst has suggested the majority of SMSF trustees lack the skills and knowledge required to make appropriate investment decisions and are vulnerable to misinformation.
Speaking to nestegg.com.au’s sister publication SMSF Adviser, Wealth Within chief analyst Dale Gillham said while there tends to be plenty of information available on meeting the compliance
requirements of running an SMSF, trustees' investment knowledge “isn’t anywhere as high as it should be”.
“Whilst I don’t necessarily think education should be mandatory, I think there needs to be checks and balances undertaken by accountants and advisers that ensure a trustee is qualified to run an SMSF,” said Mr Gillham.
“Every SMSF has an accountant or an auditor so perhaps they should be the ones to suggest the trustee receive training if they feel the trustee doesn’t have the skills they need.”
Mr Gillham said that in more than 20 years working as an analyst, he has seen a vast majority of investors consistently make mistakes due to a lack of knowledge, which inevitably impacts upon their returns.
“This is currently happening in the super fund world; people are setting up portfolios and doing things that shouldn’t [be done] simply because they have a lack of knowledge,” he said.
“They tend of be like ships without rudders doing whatever others tell them to do rather than making their own informed decisions.”
This lack of knowledge, he said, is also leaving trustees exposed to some of the more unscrupulous people who target SMSFs for their own benefit.
“The average Australian doesn’t do a lot of research. They don’t read PDSs, and only look at the return rather than the risk on that return, they don’t research different products or providers, and they are at that much greater risk because of it,” he said.
“Getting people to understand what they’re investing in has been a big challenge in the financial services industry – people put their money in places they don’t understand all the time.”
RELATED ARTICLES
Self managed super fund
Superannuation guarantee to be paid on government paid parental leave, says ASFA
The Association of Superannuation Funds of Australia (ASFA) has hailed the government's decision to include Superannuation Guarantee payments with its Paid Parental Leave policy as a critical step ...Read more
Self managed super fund
SMSF experts advise against hasty reactions to potential super tax changes
As the Australian Government proposes a new tax measure on superannuation earnings for balances exceeding $3 million, experts from the self-managed super funds (SMSF) sector are urging members not to ...Read more
Self managed super fund
Federal government announces changes to superannuation contribution caps
The Federal Government has announced changes to the superannuation contribution caps, impacting self-managed super funds (SMSFs) and their members from 1 July 2024. Read more
Self managed super fund
SMSF Association calls for joint effort to tackle early super access
The SMSF Association is calling on a collaborative approach including the Government, the Australian Taxation Office (ATO), the Australian Securities and Investments Commission (ASIC), and the ...Read more
Self managed super fund
Rest Super members file class action over alleged insurance premium deductions
Shine Lawyers has initiated a class action lawsuit against Rest Superannuation (Rest), alleging the unlawful deduction of income protection insurance premiums from members' superannuation accounts. Read more
Self managed super fund
Debunking a superannuation tax myth: SMSF Association clarifies the impact on Aussie farms
In the ongoing debate about a proposed new tax targeting superannuation funds exceeding $3 million, the SMSF Association has stepped in to challenge claims from the Association of Superannuation Funds ...Read more
Self managed super fund
Is an SMSF right for you?
When it comes to planning for retirement, one of the most significant decisions Australians have to make is how to manage their superannuation. Read more
Self managed super fund
SMSF growth continues after pandemic peak
The statistics have begun to change coming out of the COVID-19 pandemic, according to new findings from Australian Investment Exchange Limited (AUSIEX). Read more
Self managed super fund
Superannuation guarantee to be paid on government paid parental leave, says ASFA
The Association of Superannuation Funds of Australia (ASFA) has hailed the government's decision to include Superannuation Guarantee payments with its Paid Parental Leave policy as a critical step ...Read more
Self managed super fund
SMSF experts advise against hasty reactions to potential super tax changes
As the Australian Government proposes a new tax measure on superannuation earnings for balances exceeding $3 million, experts from the self-managed super funds (SMSF) sector are urging members not to ...Read more
Self managed super fund
Federal government announces changes to superannuation contribution caps
The Federal Government has announced changes to the superannuation contribution caps, impacting self-managed super funds (SMSFs) and their members from 1 July 2024. Read more
Self managed super fund
SMSF Association calls for joint effort to tackle early super access
The SMSF Association is calling on a collaborative approach including the Government, the Australian Taxation Office (ATO), the Australian Securities and Investments Commission (ASIC), and the ...Read more
Self managed super fund
Rest Super members file class action over alleged insurance premium deductions
Shine Lawyers has initiated a class action lawsuit against Rest Superannuation (Rest), alleging the unlawful deduction of income protection insurance premiums from members' superannuation accounts. Read more
Self managed super fund
Debunking a superannuation tax myth: SMSF Association clarifies the impact on Aussie farms
In the ongoing debate about a proposed new tax targeting superannuation funds exceeding $3 million, the SMSF Association has stepped in to challenge claims from the Association of Superannuation Funds ...Read more
Self managed super fund
Is an SMSF right for you?
When it comes to planning for retirement, one of the most significant decisions Australians have to make is how to manage their superannuation. Read more
Self managed super fund
SMSF growth continues after pandemic peak
The statistics have begun to change coming out of the COVID-19 pandemic, according to new findings from Australian Investment Exchange Limited (AUSIEX). Read more
