There are a number of ways in which advisers and accountants can grow their SMSF business as a result of an increase in Generation X’s superannuation savings
This year is a momentous one for me. This is the year I turn 40. While typically images of midlife crisis might spring to mind, for me it is one of revelation. This is the year I realise my super balance is big enough to most likely have my own SMSF.
I don’t think I am alone in the realisation. All over Australia there are professionals in their 40s realising that they their super balances are significant. What many are not recognising is just what they can do with that.
With all the talk of SMSF being the next big opportunity for the industry, there are many issues that are being addressed with the current SMSF landscape. The costs of administering the fund; sufficient diversification of assets for the investor; and compliance are just a few.
However, one of the biggest challenges for SMSFs – the incredibly low awareness among the public of SMSFs and how to effectively use them – is also the biggest opportunity.
Our industry still has a way to go in being able to communicate effectively, simply and engagingly on products and services that are complex and technical in nature. And the best chance of increased awareness of and successful SMSF implementation strategies is going to come from advisers, accountants and to some extent brokers, who understand how to effectively use the vehicle and know how to identify which clients are right for this type of strategy.
If you already offer SMSF, I am sure you know how much a client needs to have in super before this becomes viable, and what it takes to administer the fund. But how much do you really know about your client’s needs?
Could it be that a fact finding session might give you a better picture of what clients who are currently in corporate or industry super plans, could become SMSF clients? As a business owner I find the advantages of buying your business premises, through a vehicle like an SMSF, extremely attractive. And the capital gains advantages of selling that property in retirement or pension phases are advantageous to say the least.
How many business owners are in your client base at the moment? Would they want to own their own building in the future? Could this fit with their wealth creation strategy?
It has never been more important to ask these types of questions, as Gen X becomes the first generation to have sizeable superannuation balances and another 20-30 years in the workforce.
This will most likely be the generation that see SMSF funds thrive. Now is the time for you to get ready to capitalise on this.
