SMSF collapses imminent in hunt for yieldBY ALICE URIBE | THURSDAY, 11 SEP 2014 12:40PMA chase for yield, combined with investor empowerment and lack of education could be the perfect storm for a large scale self-managed superannuation fund (SMSF) collapse, according to Aberdeen Asset Management (Aberdeen). Related News |
Editor's Choice
The 'blind spot' costing advisers nearly $10bn: Research
|Research from Elemnta indicates financial advisers do not realise they are expending nearly twice as much effort on non-advised operations, highlighting a perception gap and challenges related to data collection and access, which cost 6000 practices about $9.36 billion in "destroyed enterprise value".
Canadian pension giant takes 20% stake in La Trobe
|Canadian public pension fund OMERS has taken a minority stake of nearly 20% in La Trobe Financial from Brookfield.
ASIC issues another stop order for private credit fund
|ASIC has issued an interim stop order on the Murdoch Clarke Mortgage Fund, issued by Murdoch Clarke Mortgage Management, prohibiting it from offering, issuing, selling or transferring interests in the fund.
Inheritors struggle to act on financial advice: Survey
|Australia's wealthy inheritors are making major financial decisions before they feel ready, with new research highlighting a gap between receiving professional advice and having the confidence to act on it.
Further Reading
Products
Expert Feed
Featured Profile

David Sharpe
CHAIRMAN
FINANCIAL ADVICE ASSOCIATION AUSTRALIA
FINANCIAL ADVICE ASSOCIATION AUSTRALIA
A family man, business owner, cricket fanatic and financial adviser, David Sharpe has many facets. One of his biggest legacies, as he steps down as chair of the Financial Advice Association Australia, is leaving the profession stronger than he found it.







What a pity the poor non-aligned financial adviser is almost extinct. Thank you regulators, thank you financial journalists, thank you PI insurers, thank you all you pressure groups who don't understand the need that the ordinary Australian has for good advice, and what's more important, where they can get it!
Investors have largely overestimated their own investment capabilities and have decided to "go it themselves because they can do better than the full time professionals" so they set up a SMSF.
When they've made poor investment choices, chasing attractive above market returns, we've seen it all over the TV as they look to blame others for their poor investment decisions. The sad thing is that it will now be their lifetime superannuation savings that are now at risk of their overinflated egos suggesting they can do it better than the professionals.
There will be a steady stream of whinging SMSF members looking for someone to blame...all over again....well, the TV stations won't be struggling for stories...!!
Sub optimal asset allocation is not limited to SMSFs. With the array of investment options available within the public offer superannuation sector, members who make their own investment decisions, in the absence of quality advice, are equally exposed to under-performance and potential negative returns. The potential for members to lose their retirement savings through poor investment decisions is not the exclusive domain of the SMSF sector. Many (most) members need to accept that they are not skilled investment gurus and should be willing to take the counsel of a professional and skilled financial adviser. This applies to members of both SMSF and public offer funds.