The thing I love most about being in business is collaboration. I get a real buzz when I sit down with my adviser clients and peers, and come up with ways we can work together to create or discover growth opportunities.
Over the past few years I’ve watched with interest as the financial planning space has moved to fee for service and as a result, planners have been forced to rethink their entire business model. This evolution has been a win for those, like me, in the SMSF space.
It’s no secret that SMSFs are now a “must have” in a financial planning client base. The reason is simple, they are the “perfect” fee for service vehicle – they have the complexity that allows an adviser to add value with great strategies and they have the money to pay for this advice.
So with everyone now having an SMSF client base and a kit bag of the latest SMSF strategies, how do you differentiate yourself? I think the obvious answer is to seek out and find untapped opportunities.
But I hear you ask, if there are so many people in SMSFs and so many strategies, how can there still be untapped opportunities? Again, the answer is simple – it’s what I call the “SMSF Audit Myth”.
Put simply, most believe that because an SMSF has been audited it has a clean bill of health. However, in many cases nothing could be further from the truth. Within your SMSF client base right now there are issues that lay undiscovered or, as I like to call them, “untapped opportunities”.
By collaborating with the right SMSF provider you can unearth these opportunities, unlock new ways to demonstrate value and generate new fees from your SMSF clients. And, as an added bonus, taking your SMSF client base on this journey of discovery can also help you tick off your best interest duty obligations.
When I perform a “Compliance Snapshot” review for an existing SMSF I rarely come across one that is squeaky clean. For example, I’ve lost count of the times I’ve seen incorrect member tax components. The tax savings that result from correcting this important information are usually not small; sometimes they are staggering!
This example is a win/win/win for our advisers – they demonstrate their expertise, they build trust and they provide real value so the clients are happy to pay their adviser fees for many years to come.
For me this review exercise is an absolute must for firms who have inherited or purchased SMSF clients. It’s an exercise that should be done before rushing into providing SMSF strategies – I think of it as checking the foundations before renovating the house.
If you want to find out more about ways you can shore up your SMSF client base and unlock new opportunities, drop by the Keep It Simple Super stand at the No More Practice Live Event in August.
Julie Taylor is the Founder and Technical Manager of Keep It Simple Super. She is a Chartered Accountant and Registered Tax Agent who has specialised exclusively in SMSF administration for more than 13 years.
