Unfortunately, such breakthroughs in cost and information in the Share Broking Industry have not filtered through to the Self Managed Superannuation Industry.
According to the ASIC Report on Cost of Operating SMSFs, the average administration fee to run your own Self Managed Superannuation Fund (SMSF) is between $2,000 and $7,000 per annum.
This is a cost that is increasing each year and is pricing the average investor out of this lucrative market.
So why isn't the cost of SMSF coming down? After all, technology is being used everywhere to lower the cost of all financial services we demand.
The problem lies with the conservative nature of accountants. They do not like changes and they are slow to adapt to change.
In fact, accountants still perform the annual compliance requirements for an SMSF fastidiously and manually just how they did twenty years ago.
This time consuming manual process is labour intensive and the cost of accounting staff is going through the roof causing such costly SMSF running fees.
Why don't accountants adopt technological change to eliminate the manual processing and pass on the cost savings to end users? Quite simply it costs too much.
Such change would require a capital outlay of millions of dollars and accountants (especially if they have only 10 or 20 SMSFs to manage) are not large enough to afford the cost.
Enter ESUPERFUND who has single-handedly revolutionised the area of Self Managed Superannuation.
ESUPERFUND decided very early in our development that we would embrace the technological breakthroughs available in all other areas of business and apply them to SMSF.
ESUPERFUND has devoted significant time and capital to develop a process of capturing information electronically directly from the broker and bank.
This eliminates the need to access and reconcile our clients' SMSF information each year and manually input that information into our accounting software.
This in turn provides significant cost savings to us which are passed on to our clients.
ESUPERFUND attends to all our clients SMSF administration needs (including financial statements, tax returns and audit) for per annum which is significantly below the average market fee.
What's more we fix this cost irrespective of the size of your SMSF or the number of transactions made as technology can process 1 transaction or 1,000 transactions in the blink of an eye.
So why should you pay more for the extra transactions your SMSF makes?
Revolutionary changes in any area are typically greeted with scepticism by the general public.
However, once the changes are satisfactorily explained to the consumers, they embrace those changes they once derided.
Each month hundreds of Australians are joining ESUPERFUND and embracing the Self Managed Superannuation revolution we have delivered. Why don't you?
Before you start
An SMSF can be a great vehicle to take back control of your Super but an SMSF may not be right for everyone.
We have conveniently summarised other factors to consider when contemplating setting up an SMSF here.
We also assist you in understanding what is involved in the ongoing management of your SMSF via our Free SMSF Learning Centre here.
If you want to learn more about SMSFs, download an today.