SMSFs seen as ‘fashion accessory’: NGS Super
NGS Super’s chief executive has outlined the industry fund’s plans to launch tools to assist individuals assess their suitability as an SMSF trustee, saying those who regard SMSFs as a “fashion accessory” may not have considered the associated risks.
Speaking to SMSF Adviser, NGS Super's chief executive, Anthony Rodwell-Ball, said an SMSF is a good solution for those who understand trustee responsibilities and want control of their fund.
“It’s the individuals who regard the SMSF as the desirable fashion accessory, something you talk about at barbeques… those are the sorts of people that one really questions the motivation and the reason for it,” Mr Rodwell-Ball said.
“They don’t often, unfortunately, appear to have thought through the risks and responsibilities.”
Mr Rodwell-Ball said NGS Super is developing tools to assist individuals assess whether they’ve got the time, interest and technical expertise to be an SMSF trustee. The facility will be available via the NGS Super website later in the year, he said.
“If you tick all the boxes and you answer them affirmatively and you really want to proceed, well that’s good. If you don’t tick all the boxes, well then start thinking a bit more seriously about it,” he said.
“Why would I apply for a job as an SMSF trustee if I didn’t know a single thing about investing? That’s what we’re trying to get across,” he added.