In this busy life we lead, it’s easy for people to neglect their own personal financial arrangements. Generally speaking, most consumers are conscious of planning and financing their retirement; however, they tend to lack the time, information or expertise to plan and execute the necessary changes to achieve their desired outcomes.
Often, they are simply unable to keep up to date with the numerous and frequent changes to superannuation, tax rules and regulations to help ensure that the plans and strategies they have in place, will in fact, maximise their retirement outcome.
This is the gap that strategic, professional advice can fill. Strategic, impartial advice has nothing to do with financial products. It is about identifying and implementing appropriate financial strategies to achieve the desired outcomes of the client.
The aim of strategic financial advice is to help clients manage their financial resources to achieve financial security; similarly SMSFs are a unique vehicle for the appropriate individuals to take control in building their superannuation and retirement savings to achieve financial security.
Given both elements – strategic advice and SMSFs – are focused on providing the tools to increase a client’s long term financial security, a SMSF strategic advice approach can bring a valuable service to those clients (and that’s probably all clients) seeking to maximise their retirement savings to sustain their needs and desires after they leave the workforce.
The process of delivering strategic SMSF advice isn’t dissimilar to the broad strategic financial advice approach. It varies only in that it specifically seeks to utilise the unique benefits and aspects that SMSFs allow.
Strategic SMSF advice starts with a review of the current financial arrangements, including superannuation and SMSF resources available, followed by confirming the goals of your client. After having a clear understanding of the client’s current position and goals, the strategic recommendations will assist in achieving their outcomes via the SMSF.
Depending on the client’s situation, SMSF strategies could include:
- contribution strategies
- a plan for investing and holding of assets
- restructuring or rebalancing existing assets
- acquiring or transferring existing property via a borrowing arrangement
- small business concessions for self-employed clients.
- retirement planning which could include the multi-pension strategies and intergenerational or blended family strategies.
This type of value-adding advice approach can really differentiate your business and enhance the other services and products you provide to your clients.
Identifying and implementing the appropriate strategies can be a complex path to navigate. The breadth of SMSF expertise required to develop and implement the strategies can vary depending on the approach. SPAA encourages trustees and other advice professionals to seek out SMSF advice from a SMSF Specialist Adviser.
It is important to identify a SMSF specialist adviser who’s SMSF expertise has been independently assessed across a range of SMSF fields, be it superannuation, tax, legal, accounting or financial planning. Moreover, it is vital your SMSF specialist maintains their knowledge and keeps on top of changing superannuation, tax and regulatory environment – putting them in a great position to utilise SMSF strategies to optimize their client’s financial situation.
If you would like help identifying an SMSF Specialist Adviser for your business, please contact me today.
Andrea is the Chief Executive Officer of the SMSF Professionals’ Association of Australia Limited (SPAA). She has worked in the financial services industry for over 21 years and has established herself as an authority in the field of SMSFs. Her passion for the industry and its self regulation is one of the reasons for SPAA’s inception and subsequent recognition as the peak professional body for the SMSF sector. She is the face and voice of the association.
