Jeremy Coopers SMSF Views

At the recent SPAA conference (the premier conference for SMSF advisers) the Super System Review Chairman, Jeremy Cooper provided a short and effective summary of what is good about SMSFs.

The summary is (to quote)

• SMSFs can pursue asset allocations that would be difficult to implement in an APRA regulated fund.  Our Comment:  You have more control over investment decisions.
• SMSFs can have longer-term investment horizons (ie not chasing short-term performance driven by league tables and “peer risk”).  Our Comment:  You have more control over investment decisions.
• SMSF can be run in a tax-efficient manner, particularly in transition to retirement and in managing assets supporting a pension.  Our Comment – You have more control over when assets are to be sold and capital gains or losses incurred.
• There is better alignment of interests in a SMSF – members can make well informed decisions in their own interests with minimal agency costs.  Our Comment:  You are running the show and not someone else who has their own interests to consider and look after.
• Members are able to bargain directly for reduced prices for the various services they need (eg accounting, administration and broking).  Our Comment:  You have more control because you can decide which service providers to use.