Self managed super - what are the costs?

[Prospector]

Well, that was definitely a win to you, Prospector. You must have studied "Assertiveness 101"!

Did the potential new accountant want copies of the Trust Deeds etc?
Well actually that is one of the reasons I'm hesitant about him. I said that I had uplifted all that from the previous accountant and could make it available to him, and he just waved the idea away and suggested that was quite unnecessary. He also saw no need to even look at my Investment Strategy and said "I'm sure you have something that's more or less OK".
You can understand perhaps why I think it might be better to pay someone else a bit more?
Julia

Ah yes. Mine definately wanted to see the Trust Deeds. It sounds as though he wasnt going to do the audit part - as he would need to know that what you had done was 'legal' according to the Deeds, and he would also need to know your investment strategy too.

I wonder, what percentage of his clients have been audited?

Maybe that is the difference between 'good' and 'bad' accountants and is probably the question we should be asking of our accountant? Or is the Tax Audit TOTALLY random?

Does anyone know?

 

[Julia]

Ah,Duckman, it is as I suspected. Many thanks for clear explanation.


Doctorj, thank you for the suggestion. Will have a look, though I like the idea of having someone in the local area. Daryl Dixon & Associates provide a complete Super service. They offer all the handling, e.g. dividend notices, contract notes, the lot, all go to them, they keep all records, do the return and audit, everything for a total of $3300 max p.a. That's why I was so annoyed with my previous accountant charging the same amount for just the return and audit.

Julia

 

[Julia]

Has anyone used self funding installment warrants in their super fund?

Or alternatively, does anyone - e.g. maybe you, Duckman - have any comment about doing this?

Would appreciate any comments.

Julia

 

[ghotib]

We're slowly working our way round to a self-managed super fund, as part of working our way round to giving 60-hour a week jobs and the Big Smoke the flick.

Our latest step was to buy the book "How to Control Your Super Now... with a self-managed super fund!" by Tony Melvin and Ed Chan. It's part of a series called Road to Wealth, which seems to consist of a website ( http://www.knowledgecentre.net.au/ ), books, and a DVD series which is priced up in the hundreds. The website is a contact collecter; registration is free but required to access any information, and (ooops) they forgot to include the privacy policy. I was fairly positive about the book until I saw the website. Now I'm feeling diddled of my $25 and I might never get around to reading it.

Anyone know anything about the series, the authors, or the book?

Ghoti

 

[Duckman#72]

Has anyone used self funding installment warrants in their super fund?

Or alternatively, does anyone - e.g. maybe you, Duckman - have any comment about doing this?

Would appreciate any comments.

Julia

Hi Julia

I don't use them in my fund but, yes the self funding instalment warrants are promoted as a great tool to use within a superannuation fund. Mainly due to the ability to effectively "borrow"' without actually borrowing - which, as you know, is not permitted. Depending on the share they can work very effectively. I have a friend who has St George warrants and is very happy with them.

If you go to the Macquarie website - they have a fairly extensive explanation of warrants and illustrated examples of how they work within a self managed fund environment (or at least they used to have the website - haven't checked recently)

Regards

Duckman

 

[markrmau]

My intention was to use installment warrants in the super - as you know it is one of the few (only?) forms of gearing allowed.

At this stage, I haven't found any warrants I wanted to buy (i really believe in waiting till the right opportunity presents itself).

I would have liked to buy AWC call warrants but both brokers I spoke to were quite cool about the idea (despite the positive analyst reports coming out) so I decided not to.

I ended up buying AOE and HZN (off my own bat, not broker reccs). Leverage to a slow moving stock is the same as a volatile stock really.

 

[yonnie]

The reason SMSF are so popular for self-employed people is due to the fact you can claim a tax deduction for the contribution and also self-employed people generally have more ability to contribute excess cash to the fund.
Duckman

I am a self-employed share trader since last year. I know that a salary earner only pays 15% on his/her contribution taken out of the salary.

How does that work for the self-employed?

thanks

 

[Duckman#72]

I am a self-employed share trader since last year. I know that a salary earner only pays 15% on his/her contribution taken out of the salary.

How does that work for the self-employed?

thanks

Hi yonnie

Works just the same as for an employee. Contribution tax is 15% for an employee or the self employed.

If you make $5000 super contribution (which you intend to claim as a tax deduction) - 15% tax applies.

Regards

Duckman

 

[LeGorfou]

I paid $1667 to my account, who is also my auditor last year. I think I got value for money as the fund had just started and I am paying allocated pensions (myself and my wife) out of it. He raised a number of valid queries which I could answer. For one thing we had meeting minutes of every decision we have made.

I had a so called financial adviser for the first year, on a flat rate basis, who also advised me on setting up the fund, but I gave him the flick this year as his advice was pretty useless if not wrong. Financial Adviser advice you so that they can become rich. FA use is what they are IMHO.

The administration of the fund is a lot of work, which I don't mind doing as I am retired. It would be a slog if I was still working.

We have about $650k in the fund and look like easing about $100k from it this year. (That of course is not due to my genius but because you would have had to be a f***ing genius to loose money on the stock market in 2006-2007.)

 

[ROE]

OK, so now I am curious about my accountants fees. He always says that because he has to audit every single transaction then the fees are high - because I do a number of share transactions.

Last year I did a total of 35 trades, had two bank accounts all of which were documented and reconciled, and use Portfolio Planner that even calculates capital gains/loss. For which I was charged $2700.

Any comments please?

I think he's ripping you off just to have 35 Trades audit? come one how hard is it to audit something like that..everything is black and white and in CHESS records anyway....Time to look for another one? What state are you in?