Esuperfund SMSF brokers

[cogs]

Re: Esuperfunds SMSF brokers

myname

I set up SMSF with eSuper this year, best decision this year so far. I only have a relatively small fund but with their fees, transparency and the personal interest I have in investing, I wish I made the move earlier.

The process took just over 4 months to complete so don't hold your breath on the application.

Paperwork/bookwork? Certainly no more than running a small business, actually not even comparable, it is as complicated as you make it.

 

[myname]

Re: Esuperfunds SMSF brokers

myname

I set up SMSF with eSuper this year, best decision this year so far. I only have a relatively small fund but with their fees, transparency and the personal interest I have in investing, I wish I made the move earlier.

The process took just over 4 months to complete so don't hold your breath on the application.

Paperwork/bookwork? Certainly no more than running a small business, actually not even comparable, it is as complicated as you make it.

Thanks That's great news and very encouraging

 

[glenn_r]

Re: Esuperfunds SMSF brokers

I have a question for SMSF'ers

The fees paid to accountants/Esuperfund etc...how is that handled tax wise, is it deductible next year like the fee a tax agent charges for a personal return.?

I'm about half way through setting up our SMSF with eSuper and I signed a bank debit authorisation as part of the application package that allows eSuper to withdraw $699 in January every year to pay their fee's ( first year is free), any costs in running your SMSF are tax deductible I believe.

Also they are about to release about 7 different choices of insurance companies on their site or you can leave minimal funds in your existing super fund ($5K for MTAA) if you want to continue with their life / TPD insurance coverage.

 

[Julia]

Re: Esuperfunds SMSF brokers

I have a question for SMSF'ers

The fees paid to accountants/Esuperfund etc...how is that handled tax wise, is it deductible next year like the fee a tax agent charges for a personal return.?

Yes.

 

[Judd]

Re: Esuperfunds SMSF brokers

Yes.

Does Yes apply when an SMSF is a pension phase when it is supposedly "Tax free?" That is if it is tax free what is there against which a tax deduction may be claimed.

And what is the situation for those over 60 years of age?

Just curious as I am not, for reasons of my own, have an SMSF. Indeed once I turn 55 yo, all the super funds (whatever they may be) I will have at that stage will be withdrawn from that structure.

 

[awg]

Re: Esuperfunds SMSF brokers

Does Yes apply when an SMSF is a pension phase when it is supposedly "Tax free?" That is if it is tax free what is there against which a tax deduction may be claimed.

And what is the situation for those over 60 years of age?

Just curious as I am not, for reasons of my own, have an SMSF. Indeed once I turn 55 yo, all the super funds (whatever they may be) I will have at that stage will be withdrawn from that structure.

I would have to refer to my SMSF tax return to check the accounting, but because no tax is payable in pension phase, I cant see how a deduction can be claimed.

I am not 60, but dont claim the fee as a personal deduction, despite having taxable income.

I seem to remember this is something I clarified for myself previously, but now my memory is hazy, so I will check again to be sure, i would hate to be cheating myself of a legitimate deduction.

There is another fee as well, a flat ATO surcharge of $150 for any SMSF plus any ASIC fees if you have a Corporate Trustee.

In any case, lesser fees, whether deductible or not, beats higher costs either way.

 

[Julia]

Re: Esuperfunds SMSF brokers

Does Yes apply when an SMSF is a pension phase when it is supposedly "Tax free?" That is if it is tax free what is there against which a tax deduction may be claimed.

Just tough luck, Judd. It's not like having franking credits where the ATO kindly send you a cheque if you don't need to use franking to offset tax payable.
However, let's not complain. Paying no tax in the first place is quite nice.

 

[myname]

Re: Esuperfunds SMSF brokers

I would have to refer to my SMSF tax return to check the accounting, but because no tax is payable in pension phase, I cant see how a deduction can be claimed.

I am not 60, but dont claim the fee as a personal deduction, despite having taxable income.

I seem to remember this is something I clarified for myself previously, but now my memory is hazy, so I will check again to be sure, i would hate to be cheating myself of a legitimate deduction.

There is another fee as well, a flat ATO surcharge of $150 for any SMSF plus any ASIC fees if you have a Corporate Trustee.

In any case, lesser fees, whether deductible or not, beats higher costs either way.

Have you checked yet? I would think that if the SMSF pays tax ,any fees would be tax deductible for the super fund not personal income tax

 

[123enen]

Re: Esuperfunds SMSF brokers

A question for those of you on esuper.

I understand they allow you to trade via Comsec BUT settle via a mandatory third party ANZ account.

Given that, which Comsec trade execution rates apply.

For example,

Comsec internet preferred rates are $19.95 up to $10,000 transaction value $29.95 (up to $25,000)
0.12% (above $25,000)

Their regular non preferred rates are
$29.95 up to $10,000 transaction value 0.31% (above $10,000)

And the scary one is:
Trades requiring settlement through a third party $99.95 up to $15,000 transaction value 0.66% (above $15,000)

 

[robusta]

Re: Esuperfunds SMSF brokers

A question for those of you on esuper.

I understand they allow you to trade via Comsec BUT settle via a mandatory third party ANZ account.

Given that, which Comsec trade execution rates apply.

For example,

Comsec internet preferred rates are $19.95 up to $10,000 transaction value $29.95 (up to $25,000)
0.12% (above $25,000)

Their regular non preferred rates are
$29.95 up to $10,000 transaction value 0.31% (above $10,000)

And the scary one is:
Trades requiring settlement through a third party $99.95 up to $15,000 transaction value 0.66% (above $15,000)

$29.95 per trade. I am very happy with Esuper - not sure how economial it would be if day trading but for long term investing

 

[gooner]

Re: Esuperfunds SMSF brokers

http://www.esuperfund.com.au/shares/shares/brokerage.aspx

$29.95 up to $25k and 0.12% of trade value over $25k. I don't transact much on my SMSF so suits me fine

 

[123enen]

Re: Esuperfunds SMSF brokers

Thanks all.
I don't intend to trade much at all on Super so that pricing will suit me as well.

Another client ready to sign. That was one of my last questions.

 

[mrsmiffy]

Re: Esuperfunds SMSF brokers

Another way Esuperfund make their money is by commissions from banks etc.
E.G if you use esuperfunds service for term deposits. ING will pay Esuperfund .1% commission for being the agent and arranging the term deposits. This has no effect on your interest rate or your own .1% loyalty bonus for re-investing term deposits. An excellent service by esuperfund, my audit and tax return have been finalised for the year, all good, no tax. Interest rolling in. Commsec is fine for the amount of trades I do. Linked ANZ account works well too.
Satisfied Esuperfund customer.

 

[titl4]

Re: Esuperfunds SMSF brokers

........
Satisfied Esuperfund customer.

I have now left eSuperfund for a much more costly option but I was always satisfied with the way they did business - including their commissions which some get concerned about. For me it was only the lack of options. eg

1. Bank account. When the market is performing poorly most of my money is in cash. The required bank account was paying up to 2% less than that elsewhere - which adds up in a hurry. Even other ANZ accounts were paying more!
2. Broker. I'm not a very short term trader but often enough that $29.95 starts to hurt. Add $15 for a conditional order (which I use for stop loss) and it bites harder.
3. Markets. Foreign shares are excluded. I also trade the US exchanges mainly for diversity - and to some extent stability.

I'm now paying around $2000 instead of $600 but my fund is better off - at present mainly due to better interest rates.

I do believe that for a fund with mainly term deposits and managed funds eSuperfund is a bargain.

Cheers ....... Alan

 

[sails]

Re: Esuperfunds SMSF brokers

I have now left eSuperfund for a much more costly option but I was always satisfied with the way they did business - including their commissions which some get concerned about. For me it was only the lack of options. eg

1. Bank account. When the market is performing poorly most of my money is in cash. The required bank account was paying up to 2% less than that elsewhere - which adds up in a hurry. Even other ANZ accounts were paying more!
2. Broker. I'm not a very short term trader but often enough that $29.95 starts to hurt. Add $15 for a conditional order (which I use for stop loss) and it bites harder.
3. Markets. Foreign shares are excluded. I also trade the US exchanges mainly for diversity - and to some extent stability.

I'm now paying around $2000 instead of $600 but my fund is better off - at present mainly due to better interest rates.

I do believe that for a fund with mainly term deposits and managed funds eSuperfund is a bargain.

Cheers ....... Alan

titl4, I thought one could move the funds to another bank account but you can't trade with any funds that are in an account other than eSuperfund's designated account.

I agree with your comments on Commsec, it is a real put off...lol. And not just the high fees. I wish there was a bit more freedom with brokers.

 

[KurwaJegoMac]

Re: Esuperfunds SMSF brokers

titl4, I thought one could move the funds to another bank account but you can't trade with any funds that are in an account other than eSuperfund's designated account.

I agree with your comments on Commsec, it is a real put off...lol. And not just the high fees. I wish there was a bit more freedom with brokers.

This is correct - you can set up and link an online savings account if you want a high interest online account for when you're holding cash.

The ANZ V2 account is for eSuperfund to recoup fees and for transferring cash to and from your Commsec account.

 

[titl4]

Re: Esuperfunds SMSF brokers

This is correct - you can set up and link an online savings account if you want a high interest online account for when you're holding cash.

The ANZ V2 account is for eSuperfund to recoup fees and for transferring cash to and from your Commsec account.

That must have changed as at the time I queried that but was advised that it wasn't permitted as they would not receive the transactions electronically. It might have changed my decision to move.

I'm still happy with the decision as the broker and exchange freedom is worth it but it was the bank account that guaranteed the economics.

BTW - eSuperfund did advise that they were considering a broker option but it wouldn't be soon.

Cheers ........ Alan

 

[KurwaJegoMac]

Re: Esuperfunds SMSF brokers

That must have changed as at the time I queried that but was advised that it wasn't permitted as they would not receive the transactions electronically. It might have changed my decision to move.

I'm still happy with the decision as the broker and exchange freedom is worth it but it was the bank account that guaranteed the economics.

BTW - eSuperfund did advise that they were considering a broker option but it wouldn't be soon.

Cheers ........ Alan

Fair enough. Just to clarify though - you can't pick what Online account, it has to be one of their partner accounts which is ING I believe.

 

[awg]

Re: Esuperfunds SMSF brokers

This is correct - you can set up and link an online savings account if you want a high interest online account for when you're holding cash.

The ANZ V2 account is for eSuperfund to recoup fees and for transferring cash to and from your Commsec account.

A few observations.

You can setup a high interest account with any financial institution (as far as I am aware) to recieve a better rate of interest than V2.

You supply these details manually at audit time.


Several drawbacks

1) Nearly all, if not all of these "high interest accounts" have a bonus interest clause, meaning you only get the high rate if you dont transfer any funds to your V2 account..ie to settle a trade.

2) Most have a "introductory" rate...then drop you back

3) If you have a Corporate Trustee, the process is a hassle

4) xtra work for you at audit time.

OK if you want a huge amount in on call cash, but I personally got so sick of this lazy money, and the fact that the banks were effectively stealing out of my pocket, that I decided to put most of my cash component into preference shares, which was a profitable decision.

In respect of trading frequency and costs, it suits me because I normally dont trade a great deal, but having day-traded profitably can say that the commssions are too high via Comsec at the non-preferred rate to justify that form of trading, and that if you are a sophisticated and high Nett wealth investor, who wishes to actively utilise leveraged instruments and OS , low cost and high frequency brokerage, imo, and having discussed this with others, it would be ultimately better for you to utilise a more flexible arrangement, even though it would cost much more in super fees.

The idea is that you would make vastly more utilising leverage, trading nous, and savings on commission than the piddling $3000 or so extra in audit fees

Do your own calculations

 

[glenn_r]

Re: Esuperfunds SMSF brokers

Question for the ex- esuperfund users , did esuperfund charge you anything when you left them?

I have recently started our SMSF with them, there was no startup fee and the first years audit is free with a charge of $699 p/a for the second year on.