Industry funds offer 'viable SMSF alternative': IFFP
Industry super funds offer superannuants many of the benefits of self-managed superannuation funds (SMSFs), without their downsides, according to Industry Funds Financial Planning (IFFP) general manager David Haynes.
“There’s an enormous world of opportunities operating within industry funds that commercial financial planners will never recognise, but which represent a viable alternative to a SMSF,” Haynes said.
By contrast, he said, the IFFP does “not resile from telling industry fund members considering a SMSF that what some people and some funds want to do with a SMSF can be done within their own industry fund".
“We tell members about the value of their industry super and we reveal the pitfalls of alternatives they may be considering, but we always do that within the context of a best-interest framework.”
“For example, people who might want a SMSF often don't appreciate “the difficulties, the cost, the compliance requirements, the traps for young players and the audits by the tax office".
Equally, he said “not everyone considering a SMSF is aware of the Australian Super’s ASX 200 functionality, which gives members the capability to select stocks within their industry super funds".
“People may also have a particular insurance requirement, and again the opportunities that exist within super funds in relation to insurance are now a lot greater than 10 years ago.
"People can also load up with cash within an industry fund if they think that’s the right way to go, although I am not saying this is necessarily recommended."
Haynes said IFFP has clients who have their own SMSFs, although generally members in this position have two funds.
“In this case, we would not be managing their SMSF fund as such, but we would give the member advice in relation to the totality of their investments, such as with asset allocation.”
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