George Lucas
Wealth Know How, Australia’s first independent financial educational video-based website, designed for consumers, has launched a series of educational videos covering several of the issues relating to self-managed super funds (SMSFs).
Wealth Know How’s George Lucas (Co-Founder) says the decision to produce a series on SMSFs videos was driven by viewer requests, reflecting the fact that there are now about one million SMSFs trustees, many of whom are looking for a range of information about running their funds.
“Wealth Know How is a website that’s tailored to make sense of the financial world for the average investor. With more and more people setting up SMSFs, we have been receiving a lot of interest around the basics of SMSFs. People want to know what is a SMSF and if it’s a suitable investment vehicle? They want to hear about regulations governing SMSFs and how to set it up among other topics.
“Superannuation investing post the introduction of the Superannuation Guarantee in 1992 was initially the role of professional fund managers and asset consultants who would determine the allocation of retirement funds across cash, stocks, property or bonds. The decisions on what to invest in, and when to invest, were made for consumers.
“But the exponential growth in SMSFs has changed this dynamic. Even if trustees decide to outsource its operations totally, they still have to sign off on any decision. This requires information and, as a result, they are looking at various informative platforms for guidance on their investment and regulatory journeys.
“Wealth Know How videos, driven by expert commentary, and delivered by online video channels, are the ideal platform to assist in answering those SMSF queries.
“Another area that investors want to know is about the regulations that govern SMSFs, which as we all know, are strictly enforced.
“SMSF trustees can decide the assets that go into their fund and when they are bought and sold. There are limitations – in that the assets must be allowed by ATO and the ‘arm’s length’ rules apply to their use – but SMSF trustees have a lot of flexibility over what they can own, and when they buy assets. They also get more control over the fees they pay.
“There are set-up costs for an SMSF, and annual costs, some of which are not optional, but the costs of administering an SMSF are falling.”
