Very true Julia, also I cant see any point in the huge amount of paperwork and ongoing effort for a SMSF if you are just going to invest in ETF's, plenty of other options to do that without the complication of an SMSF structure.
Having finally completed the setup of my SMSF, I am not sure I would have even done it if I had been fully aware of just how much work was involved!
Hello galumay, I'm sure now that you have the setup completed, you'll soon find the record keeping is little different from what you'd be doing outside of a SMSF. I know what you mean, however: about five years ago I just changed from two trustee structure to corporate trustee and the amount of paperwork was far more than I'd anticipated.
As suggested above, if you electronically file everything as it arrives, ie dividend notices, bank statements etc, end of f/y will be easy. I also get hard copy of everything sent by post as well: it doesn't cost me anything and provides a backup should there be electronic failure.
Good luck with it.
Not sure why you say that Julia?
I already made it clear in my earlier post.
I'd have thought most people going to the trouble and accepting the responsibility of running their own SF would be doing so with the purpose of having full control and in the belief that they can outperform any index.
If you're content to just accept the performance of an index then that's up to you.
By selecting individual stocks, some for their growth potential and others for their stability and grossed up yield, it's possible to do a lot better than that.
ETF,s are very simple, they don’t try and beat the index or commodity there benchmarked too, they simply replicate it at very low cost, no performance fees, no fees for analysts and experts to run the fund just very low management fees for tracking an index and means the average person can get the same exposure to assets that the big funds can.
Sure. Yes, as I've agreed above, all you're doing is replicating the index and paying a management fee for the privilege.
Not sure were all this work to run a SMSF comes from?, from were im sitting, once set up its pretty simple, not much more work or effort from doing my personal tax return, just need to be organised and keep track of things during the year.
That's true, but the penalties for getting it wrong are substantial. I'll give you an example.
About eight years ago, I'd had all my info to my then accountant a full six months before the tax return for the SMSF had to be lodged. Six weeks out, not having any indication it was close to completion, I reminded her of the due date. "No worries, it would all be done in time."
Two weeks before, following two more queries from me, I'd still not seen anything. It turned out that she still had not completed the return, let alone sent it off to the auditor. When I expressed my anxiety about this, she said "oh, don't worry about the audit: we have an arrangement; he just signs off on it without seeing it. It will all be lodged on time".
Obviously it's not acceptable to me that the whole audit process is a sham rather than a reassurance to me of the validity of her work. Too late to send everything to another accountant. She refused to negotiate an extension with the ATO, so I had to do this myself. They were understanding and helpful, but it should never have happened.
The point of this anecdote is not just to describe a thoroughly shonky accountant (about whom I later lodged an official complaint, she was censured and is no longer practising), but to point out that - although I was not at fault in the late lodgement of this return, I am still considered responsible for the fact that it was late.
The ATO could have been less understanding and I could have been significantly penalised.
So I'd just suggest being extremely careful about understanding any changes in legislation or other requirements. Quite minimal transgressions can render your fund non-compliant and the repercussions are considerable. For that reason I prefer to use my own accountant who is then also available for any non-super advice throughout the year.