Self-Managed Super Funds and Residential Property Inside Self-Managed Super Funds

By Jason Fittler

Beware the wolf dressed in sheep's clothing.

Time is running out!

Act now or you will miss out!

Your friends are doing better than you, and you need to catch up!

The marketing of investment products is becoming so sophisticated that most people now see it as information or even investment advice. It is getting harder for people to distinguish between a professional adviser and a salesperson.

My industry does not help itself as many qualified financial planners and accountants sell their soul for money. They stop providing good advice and start selling products which provides them with the best financial return. Good for them, but not in the best interest of their clients.

The big sell now is for Self-Managed Super Funds and residential property that can be purchased inside of a Self Managed Super Fund. Now this type of investment is not in itself fundamentally wrong but that does not mean it is right for you.

Self-Managed Super Funds in my experience will produce a better over all return for those people who take an active role in saving for their retirement. But they are not for everyone. You need to have an understanding of taxation, accounting and how investments work.

I have found that Self-Managed Super Funds best suit people who have owned or run a business or have worked at a high level in private enterprise. The reason being, these people tend to be better equipped to understand the regulations and paperwork, which will be required. They also understand the consequences of getting it wrong.

If you do not have this type of experience then you will need to invest some time and money to get the right advice and make sure that you are fully aware of your responsibilities and the costs and penalties associated with getting it wrong.

A free seminar will not give you the tools you need to run a Self-Managed Super Fund. You need to commit sufficient time to read and understand the regulations around running a Self Managed Super Fund. It is advisable to take a course through a recognized body. These courses take around 10-weeks to complete and have an online exam at the end.

So before you set up a Self-Managed Super Fund, you need to work out if you have the skills and time to run one.

The other big hype is all of the talk about a property bubble, which is not happening but could if more people buy property. This is simply marketing which the media are involved in. When I say media, this is a not just ads on the television or radio, this also includes people who pay to have a spot on a television show or radio show as a guest expert. This way they can make it seem as if you are getting independent advice when in fact you are receiving a sales pitch.

Ever heard of a wolf dressed is sheep’s clothing? Well it still happens.

So beware of free advice. It’s usually just a sales pitch.

The best way to lose money is to follow the latest trend or buy the latest investment product. People do this due to a fear of missing out. They are convinced that it is safe due to media reports and advertising campaigns. However, both are solely designed to convince people to buy these investment products.

The fist step to creating wealth is… “Do not lose money”.

You always need to look at the downside of any investment and if you cannot see a down side avoid the investment at all costs as marketing has blinded you.

There is always a downside.

If you would like more information about Self-Managed Super Funds and Residential Property Inside Self-Managed Super Funds please give me a call on (07) 4771 4577.