Anyone who has works in the larger super fund sector knows well the effect of reserving accounts, crediting rates and actual results. This is their latest stab at the fact that as a general rule people have lost trust in the lack of transparency of big funds, along with concerns around estate planning and related matters. Crediting rates are dubious at the best of times.

Now with group insurance premiums being hiked considerable the large funds are struggling to retain members with any sizeable superannuation savings.

Reply to article

For original story, Click Here.

The cost that is never taken into account with these types of calculations - and the one the ATO can never ascertain - is the cost of the trustees/members time in running and maintaining an SMSF.

If a tradesman or professional who charges their clients $100 per hour spends 1 hour per week on the SMSF, this has cost them $5,200 per year. This will never be reported in the retruns of the fund. In fact the member/trustee will never even consider this when they look at the costs.

Of course, costs are only one consideration but people at least need to be honest with themselves with the cost aspect.

Reply to article

For original story, Click Here.