Super-sized migration to SMSFs
The equivalent of a large industry super fund moves out of existing funds every year and goes into new or existing self-managed super funds (SMSFs), according to Townsend Business and Corporate Lawyers.
And though there are any number of reasons for such a superannuation transition, Peter Townsend, managing director of Townsend Business and Corporate Lawyers, said that people were largely choosing to escape the share market allocations of retail and industry funds to protect their assets and find stable income streams.
"SMSFs can deliver many levels of control to trustees, not the least of which is controlling investment risk/market risk," he said.
"I believe that is why the growth in SMSF establishments is not abating.
"People are voting with their money to escape volatility in equities markets."
Townsend also said that most trustees making these choices were doing so with the assistance of SMSF specialist advisers.
"We see SMSF trustees buying property, fixed interest and unlisted assets to get away from the risk of the stock market," he said.
"Most are using specialist SMSF advisers who are listening to their clients.
"They simply want to earn well above inflation from bonds and term deposits and avoid volatility."
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