Managing your own superannuation fund can be rewarding, but it also comes with significant responsibilities. As a SMSF trustee, you’re responsible for making investment decisions, ensuring compliance with superannuation laws, and ultimately helping to secure your retirement goals.
While many trustees are confident in managing the day-to-day administration of their fund, there often comes a point where professional financial advice can add considerable value.
When Should a SMSF Trustee Consider Engaging a Financial Planner?
There is no “right” balance or age at which financial advice becomes worthwhile. However, trustees often seek advice when they realise, they need support making strategic decisions rather than simply managing administration.
Some common situations include:
- Approaching Retirement
As retirement gets closer, investment and pension decisions become more important. Trustees need to consider:
- When to start accessing super benefits
- Whether to commence an account-based pension
- How much income can be sustainably drawn from the fund
- Tax implications for themselves and their beneficiaries
- Significant Growth in Fund Assets
As balances increase, the financial consequences of investment, tax and retirement planning decisions can become more significant.
Obtaining advice can assist in improvements in portfolio structure, tax efficiency or retirement planning outcomes that can have a lasting and meaningful financial impact.
- Major Life Changes
Events such as:
- Selling a business
- Receiving an inheritance
- Redundancy
- Separation or divorce
- Changes in health
can all have significant implications for retirement planning and investment strategy.
- Investment Decisions Become More Complex
Many trustees start with relatively straightforward investments. Over time they may consider:
- Diversifying investment portfolios
- Property investments
- Managed funds and ETFs
- Retirement income strategies
- Estate planning considerations
Professional advice can provide clarity and help trustees avoid costly mistakes.
- Wanting an Independent Second Opinion
Trustees don’t need to be uncertain or struggling to benefit from advice. Sometimes a review of existing arrangements can confirm they’re on the right track or identify opportunities they may not have considered.
What Ongoing Services Can a Financial Planner Provide?
Many people think financial advice is a one-off event. In reality, good financial planning is often an ongoing relationship that evolves alongside your circumstances.
Depending on your needs, ongoing services may include:
Strategic Retirement Planning
Helping trustees develop and regularly review a retirement roadmap, including:
- Retirement timing
- Income requirements
- Asset allocation
- Transition-to-retirement opportunities
Investment Strategy Reviews
Regular reviews can help ensure investments remain aligned with:
- Risk tolerance
- Time horizons
- Retirement goals
- Legislative changes
Cashflow and Retirement Income Modelling
Financial planners can model different scenarios to help answer questions such as:
- Can I afford to retire at 60?
- What happens if markets fall?
- How long will my retirement savings last?
- What level of income can I sustainably draw?
Pension and Contribution Strategies
Advice may include:
- Contribution planning
- Timing of pension commencements
- Recontribution strategies
- Managing transfer balance cap considerations
Estate Planning Coordination
Ensuring superannuation benefits are distributed according to the trustee’s wishes can be complex. Areas such as:
- Beneficiary nominations
- Succession planning
- Death benefit strategies
- Intergenerational wealth transfer
Financial planners generally work alongside solicitors and other professionals where legal advice is required.
Ongoing Reviews and Accountability
Perhaps one of the most valuable services is regular review meetings that help trustees stay on track and adjust strategies when circumstances change.
A Real-World Example
The following example is hypothetical and provided for illustrative purposes only.
Let’s consider Mark and Lisa.
Both are aged 53 and have operated a SMSF for more than ten years. Their combined fund balance has grown to approximately $1.5 million.
They have accumulated a mix of Australian shares, managed funds and cash reserves within their SMSF. While they are comfortable managing the administration of the fund and working with their accountant on compliance matters, they have started asking bigger questions:
- Can we retire at 60?
- How much income will our super provide?
- Are our investments appropriately diversified?
- What happens if share markets decline just before retirement?
- How can we maximise tax effectiveness in retirement?
After engaging a financial planner, they undertake a comprehensive review.
The planner prepares retirement projections showing they may be on track to achieve their retirement goals, but identifies opportunities to:
- Improve portfolio diversification
- Better align investments with their retirement timeframe
- Implement a more structured retirement income strategy
- Review estate planning arrangements
- Develop contingency plans for different market conditions
The result isn’t necessarily about chasing higher returns. Instead, it’s about providing clarity, confidence and a framework for making informed decisions over the next decade.
For Mark and Lisa, the value of advice comes from knowing they have a clear plan, regular reviews and professional guidance as they approach retirement.
Outcomes will vary depending on individual circumstances.
The Bottom Line
Running a SMSF provides trustees with control and flexibility, but it also requires informed decision-making. As retirement approaches and balances grow, the financial consequences of key decisions become more significant.
SMSF trustees remain responsible for complying with superannuation laws, maintaining an investment strategy and acting in the best interests of fund members. Financial advice can assist in these responsibilities but does not remove trustee obligations.
At MBC Wealth, we work with SMSF trustees to simplify complex decisions and help them build confidence in their retirement journey. Whether you are seeking a one-off review or ongoing strategic support, the right advice can help ensure your SMSF continues working towards the future you want to achieve.
General advice warning: The advice provided is general advice only. In preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.
MBC Wealth is an authorised representative of Count Financial Limited ABN 19 001 974 625 holder of Australian financial services licence number 227232 (“Count”). Count is owned by Count Limited ABN 111 26 990 832 of GPO Box 1453, Sydney NSW 2001. Count Limited is listed on the Australian Stock Exchange.
