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Beware of the SMSF Cowboys

By Anthony Klatt

 

For most people financial matter are something to think about when time permits, or when a crunch comes and they have no choice. Long term investments such as superannuation often gets even less attention, who wants to think about something that might only be accessible years away, most of us just try to keep up with today’s problems!

That’s of cause unless it’s something sexy or trendy or perhaps something we perceive that everyone else has and we are being left behind in some way.

At this point is often where the SMSF Cowboys pitch there marketing:

  • You need a SMSF, people at your age/income all have one
  • Do you want to be the one missing out?
  • Borrowing to invest is easy and a sure thing
  • You don’t have a deposit to buy that property then get a SMSF, and unlock the deposit
  • If you don’t buy today you will miss out

Statistically there are over 550,000 SMSF in Australia with $550 billion of assets. Within that 550,000 funds there are many that are just drifting along with no potential investment plan, but that for another Blog!

With all investment question there are some simple steps to determine the path forwards, they include:

  • Know your cash flow and protect from being a forced seller
  • Understand diversification, its benefits and your personal asset allocation
  • Minimise your tax position were possible

Consider these simple steps and ask yourself is the person talking to me about a SMSF considering these questions in my specific case or are they just trying to sell me something.

If it the latter you have probably stumbled across the many SMSF Cowboys out there, who in some cases are more interested in feathering their own nest rather than your long term prosperity. 



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IMPORTANT NOTICE

On this entire website, information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. Because of this, we recommend you consider, with or without the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances.

No representation is given, warranty made or responsibility taken about the accuracy, timeliness or completeness of information sourced from third parties. Because of this, we recommend you consider, with or without the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances.

Anthony Klatt, John Grocke and Mathew Wilkshire are authorised representatives of Paragem Pty Ltd. Paragem Pty Ltd ABN 16 108 571 875, is the holder of Australian Financial Services License number 297276 and these authorised representatives trade as Johnston Grocke.

AG Finance Group is a Corporate Credit Representative (396686) of BLSSA Pty Ltd, ACN 117 651 760 (Australian Credit License Number 391237).