Esuperfund SMSF brokers

[awg]

Re: Esuperfunds SMSF brokers

can you ask them for advice about structuring investments etc, or would you still need a separate financial planner for that?

Hi Julia & others.

Esuper provide NO advice re investments. If u want that they are not suitable.

They provide only limited and restricted accountancy advice, that is directly related to specific questions you ask :re your SMSF.

Because "Simpler Super" is complex and fraught with changes, you really cannot get away from needing some independant accountancy advice.

Example. I recently enquired to Esuper when I should have my 82AAT form, for tax deduction completed, they emailed back "asap". So i did, ( on 9/6).

I week later, I notice an article in the SMH, saying, that regs have been changed, and that unless 82AAT form is lodged before 30th June, NO TAX DEDUCTION WILL BE ALLOWED!.....only coincidence that I asked them, previously the lodge date was prior to tax return ie May 2009.

No one told me !!!

they are an audit and admin service....there is no free lunch...do the sums, how much does $600pa get u of a professionals time?

tony

 

[tetranomad]

Re: Esuperfunds SMSF brokers

I just noticed that Discount DIY Super - discountdiysuper.com.au - provide a similar service to ESUPERFUND. The differences seem to be that they charge a higher annual fee of $990 for 50 transactions or less, and they do not restrict what broker you use. Indeed IB is linked on their website as a popular online broker.

Does anyone have any experience with Discount DIY Super?

PS I haven't looked into this in any detail, but from the layout of their website, I wonder whether they are an ESUPERFUND spinoff (or copycat?!).

 

[daedalus]

Re: Esuperfunds SMSF brokers

hi everyone,

i am thinking of joining esuperfund, but before i do can i please ask a few questions as part of my risk management process?

Note that my SMSF will be simple - Bank account to hold cash, Commsec account to passively hold stocks for the long term. A bit of derivatives for hedging, but this will be a small part of my portfolio

1. How reliable are Esuperfund? What is their track record in successfully completing the accounting related work for a SMSF without mistakes? I want to avoid ATO penalties!

2. Has Esuperfund ever made a mistake on someone's SMSF such that the ATO applied penalties?

3. If Esuperfund makes a mistake, their client will pay the price. Do they have any form of insurance/assurance?

4. Once I join, would I have to do anything besides signing forms forwarded to me by Esuperfund? Would Esuperfund do absolutely anything?

Thanks everyone!

 

[bigdog]

Re: Esuperfunds SMSF brokers

I am interested in setting a Esuperfunds SMSF to reduce income tax exposure for myself (64) and my wife (61)

Currently we do buy shares separately (do not trade) and I do use some borrowed money.

I am retired and do have an annuity pension fund managed by professionals which I do not plan to touch.

I am 64 and 65 next July and have some questions.

Q1: I believe that I can not put money into super after 65 unless earned from working?

Q2: Are capital gains on SMSF share sales taxable and if so at what rate?

Q3: If the SMSF pays an annuity pension, is income tax payable on capital gains on SMSF share sales?

Q4: Are there any other issues or good points that I should be aware of?

Q5: Pros for Esuperfunds SMSF

Q5: Against Esuperfunds SMSF

 

[dsduncs]

Re: Esuperfunds SMSF brokers

I am NOT a financial advisor..

I opened my SMSF in May 2008 with Esuperfund so have limited experience and have only one tax year/audit completed so far.

-------------------------
Q5: Against Esuperfunds SMSF

As AWG metioned:
"
Esuper provide NO advice re investments. If u want that they are not suitable.
They provide only limited and restricted accountancy advice, that is directly related to specific questions you ask :re your SMSF"..

and paper work and lots of reading..

Sometimes they take a day or two to respond to queries by phone or email (but better than some alternatives).

The main problem is accountancy/SMSF tax advice.

You really need an advisor.
The advisor will charge, but at least you can find out how much..

You also need to keep abreast of changes in the SMSF and tax laws.

Esuperfund moved their recommend bank account from Macquarie to ANZ, leading to lots of paper work..

Q & A:
Known unknows are OK - it is the unknown unknows that are the worry.

Your Q1-Q3 are typical of queries that come up and Esuperfund probably won't help you with these sort of question.

---------------------------------------

Q4: Pros Esuperfunds SMSF

COST:
I paid $599 for accounts and audit for 2008/2009
I paid $99 to change the trustees. (plus lots of paper work)
I paid about $500 to open a TRAP which I believe is a once off charge -
For comparison I've seen some Superfunds charge 0.5% PER YEAR to run a TRAP ($1500 per year for a $300K TRAP)

RESPONSE:
They respond to queries by phone or email in a day or two
Others funds, you have to book a meeting with an accountant or advisor.

CONTROL
I feel as if I'm in control of my Super, I know the costs involved and the distribution of my funds.

The ANZ V2 plus account give resonable interest rate for Esuper clients.

---------------
In my case setting the SMSF with a company as a trustee (rather than a family member) in the first place would have saved me a lot of paper work.

Note:These are just MY experiences SO FAR after 17months and should not be taken as advice or a recommendation.

 

[howiej0]

Re: Esuperfunds SMSF brokers

"In my case setting the SMSF with a company as a trustee (rather than a family member) in the first place would have saved me a lot of paper work."

Why is there a difference?

Any other advantages/disadvantages?

Thanks

 

[awg]

Re: Esuperfunds SMSF brokers

"In my case setting the SMSF with a company as a trustee (rather than a family member) in the first place would have saved me a lot of paper work."

Why is there a difference?

Any other advantages/disadvantages?

Thanks

corporate trustee advantages:

* 1 person can be the trustee..as sole director of company

* easy to add people to fund

* no need to amend share registry records if new members added to fund ( big advantage)

* keeps SMSF and personal shares ( and other assets) totally separate

* you get to describe yourself as "company director" if you get arrested

disadvantages

* costs money to setup corporate trustee ($600 one-off with mine, but can be much more)

* costs $40 per year in ASIC fee

* make sure you select a short name for your trustee and super fund

* see my rant here https://www.aussiestockforums.com/forums/showthread.php?t=16850

do some google searching, you will find further details

 

[dsduncs]

Re: Esuperfunds SMSF brokers

I used Cleardocs to create the company:
search on Cleardocs au
/products-company-registration.html

It cost: $537.50

but needed some help deciding which options to choose.
Esuperfund MAY do this for you if you start off with a company structure. Ask them..

For advantages I think AWG summarized it well
Disadvanges: I now pay an additional $40 per year to ASIC.

Also Search on "SMSF individual company trustee"

AWG's short names is a really really good hint.
I curse my 23 character superfund name every time I come to write it

 

[lasty]

Re: Esuperfunds SMSF brokers

I know of a firm that can do set up,audit and tax return completed and lodged unlimited transactions as well as online web platform that shows trading history CGT etc. all for only $2200 pa

 

[gooner]

Re: Esuperfunds SMSF brokers

I have sent off my application to these guys.

Have an offer on now. Free set up and free admin for 2010 financial year. This includes all the tax and audit requirements. Need to apply by 15th November. After than an annual fee of $599. Plus the $150 levy for ATO. $749 is very good for all admin and other costs associated with a SMSF.

Need to use the ANZ bank account and Comsec which is fine for me. They get automated feeds from them to keep costs low.

Still seems very cheap - anyone know if they outsource to India or if they get commissions from ANZ/Comsec. Could not see any disclosure of the latter but may not be required. Hey for $599, who cares.......

Will let you know how good (or bad) the service is.

 

[Wysiwyg]

Re: Esuperfunds SMSF brokers

-------------------------
Sometimes they take a day or two to respond to queries by phone or email (but better than some alternatives).

This is my experience.
I usually wait a week for e-mail replies. If after a week they haven't replied I send the same e-mail every day until they reply. I suppose their budget is tight. The e-mails contain documents so the other option is to send them by land.

The phone calls are often handled by a call centre who take your name and number and pass it on. I have found E-super call back on the same day or the next.

 

[gooner]

Re: Esuperfunds SMSF brokers

This is my experience.
I usually wait a week for e-mail replies. If after a week they haven't replied I send the same e-mail every day until they reply. I suppose their budget is tight. The e-mails contain documents so the only other option is to send them by land.

The phone calls are often handled by a call centre who take your name and number and pass it on. I have found E-super call back on the same day or the next.

I sent some emails asking about features of the service and got replies within 24 hours. But maybe it helps being a potential customer?

Is the call centre foreign or Australian?

 

[Wysiwyg]

Re: Esuperfunds SMSF brokers

I sent some emails asking about features of the service and got replies within 24 hours. But maybe it helps being a potential customer?

Is the call centre foreign or Australian?

Australian. Yes you are priority. I have been with them for two years and I do remember at the beginning they were prompt with replies. I need documentation to satisfy ATO requirements for fund transfers when I periodically roll-over from my industry fund.

* An ATO "letter of compliance" for my fund.
* An ATO trustee letter.

 

[Wysiwyg]

Re: Esuperfunds SMSF brokers

With regards to security I think they should have a number assigned to each member for identification when communicating. At the moment my super fund name is the only identification they use so anyone could say they were me. Not even a D.O.B. or street address check.

 

[gooner]

Re: Esuperfunds SMSF brokers

Australian. Yes you are priority. I have been with them for two years and I do remember at the beginning they were prompt with replies. I need documentation to satisfy ATO requirements for fund transfers when I periodically roll-over from my industry fund.

* An ATO "letter of compliance" for my fund.
* An ATO trustee letter.

Why do you not transfer the whole amount across from industry fund and save on management and admin fees?

 

[Wysiwyg]

Re: Esuperfunds SMSF brokers

Why do you not transfer the whole amount across from industry fund and save on management and admin fees?

Because I work for different/change employers 3 to 6 times a year, I have an industry fund that is recognised by most employers and I keep the minimum in there so costs aren't a problem.

 

[Julia]

Re: Esuperfunds SMSF brokers

Gooner, I'm not knocking E-Super because I've never used them and don't know anything about them other than that they are cheap.

How about before committing yourself you have a fee-free interview with two or three local accountants, first on the phone making clear that you are looking for someone who has expertise in SMSF's,and want a quote for set up, then annual tax return and audit (get this in writing), then explain that you can get the work done for $X by E-Super, and what can they offer?

I guess it's just a personal preference, but I really value having a personal relationship with my accountant, being able to phone him or drop in with any queries.

Maybe consider the total value of your Super and consider whether the $1000 or so that you are saving by doing it via the mass-produced option, is worth not having that personal connection?

Do you think you would get that personal tax advice etc from E-super that you would from your own accountant?
Presumably E-Super can only do the work for such a small cost because there are no bells and whistles.

I know it absolutely wouldn't be worth it for me.

 

[gooner]

Re: Esuperfunds SMSF brokers

Because I work for different/change employers 3 to 6 times a year, I have an industry fund that is recognised by most employers and I keep the minimum in there so costs aren't a problem.

I thought with choice of fund legislation, you could nominate your SMSF to receive contributions from all employers?

 

[Wysiwyg]

Re: Esuperfunds SMSF brokers

I thought with choice of fund legislation, you could nominate your SMSF to receive contributions from all employers?

Probably but then I would have to change all the details with past employers that I work for again. It is much much less hassle for me to simply roll-over from the industry fund when the pot builds up than deal with the records from multiple employers. I'm not that smart.

 

[gooner]

Re: Esuperfunds SMSF brokers

Gooner, I'm not knocking E-Super because I've never used them and don't know anything about them other than that they are cheap.

How about before committing yourself you have a fee-free interview with two or three local accountants, first on the phone making clear that you are looking for someone who has expertise in SMSF's,and want a quote for set up, then annual tax return and audit (get this in writing), then explain that you can get the work done for $X by E-Super, and what can they offer?

I guess it's just a personal preference, but I really value having a personal relationship with my accountant, being able to phone him or drop in with any queries.

Maybe consider the total value of your Super and consider whether the $1000 or so that you are saving by doing it via the mass-produced option, is worth not having that personal connection?

Do you think you would get that personal tax advice etc from E-super that you would from your own accountant?
Presumably E-Super can only do the work for such a small cost because there are no bells and whistles.

I know it absolutely wouldn't be worth it for me.

Julia

Good points all. I was actually considering doing all the work myself apart from the initial Trust Deed and the statutory audit which you can get for a few hundred dollars. However, the $599 is so cheap that it is easier to get esuperfund to do it all.

I feel comfortable doing my own research on tax changes etc as this is something I have often done when working as an accountant and also for my own personal tax affairs. I always do my own tax returns as well.

Outsourcing my tax returns would feel a bit like a painter getting someone else to paint his own house :