Along with this raft of legislative change, the Australian Securities and Investments Commission (ASIC) has also introduced new licensing requirements for accountants who work with and advise Self Managed Superannuation Fund (SMSF) Trustees. Only approx. 10% of accountants have complied with these changes to date.
As such if you, as many, consider your accountant would be your 1st port of call for Financial Advice, they will likely advise you, they are unable to provide the information you require & should consult a qualified Financial Adviser / Planner.
This is general advice only and you should seek expert financial advice from a qualified financial adviser before acting on any of the information covered in these topics.
Australian Superannuation a Success Story.
Bill Ackman, the big hitting US hedge fund investor, has been praising the virtues of the compulsory Australian superannuation system. Apart from it building wealth for all Australians, he mentioned it leads to greater financial literacy and a better understanding of how capitalism can benefit people over the long term via wealth creation. Bill’s concern in the US is that the growth in wages has been far less lucrative than the powerful compounding effect provided by the share market. Where investors are financially illiterate, they are more likely to fall behind their peers in the wealth creation process and as a result are more likely to demand radical changes to the retirement system.
The Australian super system has led to much greater wealth equality over the long term. Compulsory superannuation kicked off in 1991 and is now valued at $2.7 trillion – twice Australia’s GDP. Australia also has the world’s 4th largest superannuation pension system, while being the 53rd most populous country in the world.
“The stock market is an extremely efficient mechanism of transferring wealth from the impatient, to the patient” – Warren Buffett.