Esuperfund SMSF brokers

[KurwaJegoMac]

Re: Esuperfunds SMSF brokers

Quite right AWG. In my case im fairly young with a low net worth (in super) so esuperfund makes sense for me until i can build it up a little ovr the years. Ive crunched numbes as you say, and I have had chats with accountants for a better service - will definitely switch once my super balance has grown some more. It's definitely well worth it!

 

[pma99]

Re: Esuperfunds SMSF brokers

G'day all

I have a SMSF that was set up and is administered through my accountant. Since I don't use any "full service" features I am considering switching to esuperfunds as a cheaper alternative. Thanks to all who have asked and replied on this thread - very informative reading.

For those interested, the following site gives a comparison of companies that set up and administer SMSF's - according to this site, esuperfund is still cheapest.

http://www.thesmsfreview.com.au/comparison-table-smsf.html

Note, this is not a plug for esuperfund just a site that I thought may be of interest to others.

Thanks again

Paul

 

[Julia]

Re: Esuperfunds SMSF brokers

G'day all

I have a SMSF that was set up and is administered through my accountant. Since I don't use any "full service" features I am considering switching to esuperfunds as a cheaper alternative.

Hello Paul, can you explain what you see as 'full service features"?

 

[titl4]

Re: Esuperfunds SMSF brokers

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

No, there was no cost involved except time. It took months of hassling and then seemingly a reluctance to pass on essential data to the 'new' accountant. I suspect the problem was more related to a lack of admin time rather than being difficult but the end result was to sour what had been a good experience.

 

[titl4]

Re: Esuperfunds SMSF brokers

.........
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.............

I think it was probably me who brought up the cash element originally. It wasn't mainly the 'long term' cash component that was the issue for me. It was my preference to go to cash whenever the markets are under-performing - like recently . In those circumstances anything up to 100% of my 'equities' component is in cash for a few months or longer.

 

[titl4]

Re: Esuperfunds SMSF brokers

...........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 ...............

'Leverage' unfortunately being made harder than it needs to be by the ATO's position on margin accounts - while allowing CFD's

 

[awg]

Re: Esuperfunds SMSF brokers

I think it was probably me who brought up the cash element originally. It wasn't mainly the 'long term' cash component that was the issue for me. It was my preference to go to cash whenever the markets are under-performing - like recently . In those circumstances anything up to 100% of my 'equities' component is in cash for a few months or longer.

It has been a bee in my bonnet to, especially due to my corporate trustee status, many financial institutions wont give me favorable rates on my cash.

(Including ANZ)

At some points in time during the GFC, I had a high 6 figure sum in cash.

Can you imagine my frustration, nay rage, at being denied up to an extra 2% interest on this amount, on purely administrative grounds.

I resolved that I refused to accept this, and what I did is open a revolving door of cash accounts and transfer when they drop the rate from over 6% to about 4.5%.

Because this was time consuming and annoying, I decided it was easier and more profitable to allocate more of that cash into hybrids, takes 5 seconds to hit the buy/sell button, $30, and coupon rates of 8 to 10% are readily available.

 

[myname]

Re: Esuperfunds SMSF brokers

It has been a bee in my bonnet to, especially due to my corporate trustee status, many financial institutions wont give me favorable rates on my cash.

(Including ANZ)

At some points in time during the GFC, I had a high 6 figure sum in cash.

Can you imagine my frustration, nay rage, at being denied up to an extra 2% interest on this amount, on purely administrative grounds.

I resolved that I refused to accept this, and what I did is open a revolving door of cash accounts and transfer when they drop the rate from over 6% to about 4.5%.

Because this was time consuming and annoying, I decided it was easier and more profitable to allocate more of that cash into hybrids, takes 5 seconds to hit the buy/sell button, $30, and coupon rates of 8 to 10% are readily available.

Could you please explain what you mean by hybrids. thanks in advance

 

[So_Cynical]

Re: Esuperfunds SMSF brokers

Could you please explain what you mean by hybrids. thanks in advance

See this thread

https://www.aussiestockforums.com/forums/showthread.php?t=15124

And here's a list from Macquarie...ASX Listed Floating Rate / Income Securities

http://www.macquarie.com.au/macsecmc/codi/CodiServlet?nav=start&documenttosend=income_security_doc

 

[qwikbuk]

Re: Esuperfunds SMSF brokers

I've only come across esuperfund last week and still researching whether SMSF is the right thing for me to do. I do have a current share portfolio and feel my knowledge of the sharemarket and current research will be of great assistance in managing my fund effectively. I also subscribe to online financial advise.
I have spoken to my accountant(who does not do SMSF) and he is basicly saying the "General advice warning" disclaimer recommending professional financial advice from a financial advisor is something to be wary of.
I have been in the sharemarket for 3 years now and considering the minimal difference between the CGT for investments held for less than 12 or more than 12 months, Would be trading conservatively(in and out of the market).
A few of questions I have

1) Anyone with a personal share portfolio ; did you receive financial advice prior to setting up your SMSF with Esuperfund?

2) For anyone with an existing share portfolio, how much extra time do you use monitoring/investing in your SMSF?
3) I would diversify some of the funds into a term deposit, and on another thread it has been mentioned interest rates for corporate trustees are less than that of personal rates. Esuperfund is setup with rates for different institutions and am wondering if the rates indicated are also not applicable to corporate trustee accounts? I can email this question but if someone has personal experience replies are appreciated.

 

[Julia]

Re: Esuperfunds SMSF brokers

Without wishing to oversimplify the situation, I'd say if you're already managing your own share p/f plus cash investments, then moving all this into your own SMSF is simply a way to save tax, that is if you're on more than a 15% tax rate which I suppose you are.

You don't say if you already have Super in a publicly managed fund which you would intend to move into a SMSF. If you do this, then obviously you will be saving on fees charged.

I've never used Esuperfund but their charges seem to be very reasonable.
Personally, I prefer to pay a bit more and use my own accountant so I have ongoing access to various bits of personal advice.

How long do you need to spend to monitor investments? Depends entirely on the approach you take. No more and no less than if you were managing your own investments outside of Super imo.

 

[Mr Z]

Re: Esuperfunds SMSF brokers

I will never move 1c more than I have to into Super. It is a pile of money under government legislative control and sooner or later they will compromise it somehow. I don't trust it to be there when I retire...FWIW I'm building income outside of Super so that I will never need Super.

Call me cynical... call me stupid... but...

 

[titl4]

Re: Esuperfunds SMSF brokers

I maintain share portfolios both within a SMSF and outside of the fund. I did use eSuperfund for a few years and was satisfied with their standard of service. I have since moved the fund from them only because I wanted more flexibility with bank, broker, and the ability to trade foreign shares. To answer your questions:

"1) Anyone with a personal share portfolio ; did you receive financial advice prior to setting up your SMSF with Esuperfund?" No - at least not from a 'professional' advisor

"2) For anyone with an existing share portfolio, how much extra time do you use monitoring/investing in your SMSF?" As I maintain portfolios both in & out of super I obviously have 2 sets of records as total separation is necessary and that does take extra time. The required 'minutes' detailing every trustee decision add a small time overhead - the number depending largely on how often you trade or move money. Trading research and selections take little extra time for additional portfolios (just different selection criteria).

"3) I would diversify some of the funds into a term deposit, and on another thread it has been mentioned interest rates for corporate trustees are less than that of personal rates..........". That's not universal. Many institutions don't differentiate.

Cheers ......... Alan

 

[qwikbuk]

Re: Esuperfunds SMSF brokers

Thanks for the reply Julia,
Yes I do have funds in a public fund which I intend to move across into Esuperfund. The transfer amount is less than 100k,hence my thoughts on using Esuperfund.
As I say, my accountant is talking to me in a responsible and conservative way,(which I respect), and he has indicated that a diversified fund is required to maintain minimal risk. He also indicates the ATO is cracking down on SMSF's ,but from what I understand, at this stage it is more to do with the rich folk using the SMSF as a tax break for personal use ie things like buying a painting and then hanging it on your wall.
I do have some capital losses as a result fo the GFC in 07/08 so would maintain my portfolio at this stage,for those losses to eventually be wriiten off.
One thing I don't like is the lower rates for deposits if you are operating as a corprate trustee!
Any further comments welcome

 

[qwikbuk]

Re: Esuperfunds SMSF brokers

Mr Z,
Thanks, I have some time to go before retirement, and agree with your thoughts.

Alan ,
Thanks , some further Q's if I may
)May I ask how much diversification you had with your SMSF.
2)Does the ATO expect certain criteria to be adhered to?
3)What type of minutes are required to maintain the SMSF appropriately, u mean buy/sell of shares etc?
4) Esuperfund has links to term deposits from institutions they have a deal with, I will pop off an email to see if the rates apply to funds with a corporate trustee.

Thanks again

 

[titl4]

Re: Esuperfunds SMSF brokers

..............
Alan ,
Thanks , some further Q's if I may
Thanks again

")May I ask how much diversification you had with your SMSF. "
ASX shares, managed funds, term deposits while with eSuperfund. I have since added US shares and more freedom with banking and broker options.

"2)Does the ATO expect certain criteria to be adhered to?"
Yes. I'd suggest having a good look at the responsibilities of trustees before starting a SMSF. The ATO site is a good place to look but other websites (including eSuperfund) have information on this.

"3)What type of minutes are required to maintain the SMSF appropriately, u mean buy/sell of shares etc?"

Every decision by the trustees. Buy/sell shares, TD's, managed funds, new accounts and also forward planning and strategy etc. Its not that hard but must be done.

"4) Esuperfund has links to term deposits from institutions they have a deal with"
That's new since I was with them. In my experience their 'preferred' accounts were not usually the best option for our fund financially (eg required bank & broker) but that disadvantage may be offset by eSuperfund's low fees.

In the end its your decision if you want the financial control of having your own fund and the workload / responsibility involved. Then, if you do, are you happy - at least for a few years - with the restrictions imposed by 'administrators' such as eSuperfund which simplify their task and provide commissions to supplement the basic fee.

Cheers ....... Alan

 

[qwikbuk]

Re: Esuperfunds SMSF brokers

Great replies Alan,

Things are a bit clearer now. Esuperfund currently has an offer for free setup. It expires today , but I am going to forgo rushing into things until I am fully comfortable with my decision.

Cheers and thanks again

 

[Julia]

Re: Esuperfunds SMSF brokers

"2)Does the ATO expect certain criteria to be adhered to?"
Yes. I'd suggest having a good look at the responsibilities of trustees before starting a SMSF.

Agree.

"3)What type of minutes are required to maintain the SMSF appropriately, u mean buy/sell of shares etc?"

Every decision by the trustees. Buy/sell shares, TD's, managed funds, new accounts and also forward planning and strategy etc. Its not that hard but must be done.

I admire your thoroughness, but it's not necessary to make a minute every time you make a trade. I have never done this and don't know anyone who does.

I just have a pretty broad Investment Strategy document which says the Fund will be invested variously from time to time in accordance with market conditions. So if, e.g. I sell everything in order to protect capital (a specific intention noted in the Investment Strategy) during a significant market downturn, I just do it: don't do a minute about it.

Have had the fund for many years and no accountant or auditor has ever suggested it's necessary to do minutes for every trade.

Re the ATO 'cracking down' on SMSF's, I'd agree with the interpretation that it's related to the inappropriate use of the funds.

Much is made of how much work is involved in running your own fund. I don't find it so at all, but - as above - I don't go out of my way to make work that's not necessary.

Sure, you'll spend time thinking and communicating about market related stuff but you'd do that anyway if the investments were held outside of Super.
It's simply a tax-advantaged vehicle in which to hold assets, not an asset itself.

And I agree with those who have concerns about government getting their sticky fingers all over Super one day. Already there is discussion about retirees being forced to put some of their saved funds into compulsory income streams. Now while that might be a good idea if it's well run, you sure as hell don't want the government telling you what to do with your own money!

 

[qwikbuk]

Re: Esuperfunds SMSF brokers

Thanks Julia,

appreciated. The website for Esuperfund indicates free setup which has no set date

http://www.esuperfund.com.au/howitworks.aspx

but there main page indicates offer till 15th Nov 2010
.
Either way I will be investigating responsibilities of a SMSF fund operating under a company with myself as a trustee and also a few other things before jumping in.
At this point and time I am still leaning towards SMSF .

Cheers and thanks again

 

[Julia]

Re: Esuperfunds SMSF brokers

One other thing to be aware of is to understand any implications of your Trust Deed when setting up the Fund. Some can affect your estate planning.
Probably a good idea to run it by your solicitor to make sure the verbose and legalistic wording actually says what you need it to.

I don't know, but I'd guess Esuperfund would have a pretty simple, 'one size fits all' Deed, and if you have some specific circumstances you need to consider, checking this carefully would be a good idea.