Aaron Dunn - SMSF Strategy Day

Report
CATAPULTING YOUR BUSINESS
FOR SMSF GROWTH
Aaron Dunn
The SMSF Academy
TOTAL
ASSETS
$2.23tn
2033
35.87%
64.13%
$505bn
2013
Pre-retirement
Nearly
Source: Deloitte Dynamics of Superannuation Report 2013
Post retirement
4x
larger
DEMOGRAPHICS ARE
CHANGING…
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
< 25
25-34
35-44
New Funds established
45-54
55-64
All SMSF Members
>64
1
:
4
What
New
entrant
s under
age 45
do you
know about
your
existing
SMSF client
base?
Almost half the
assets in
superannuation today
are held by people
who are going to
retire in the next
Source: Deloitte Dynamics of Superannuation Report 2013
THE ‘SUPER’ WEALTH SHIFT
36%
59%
2033
30%
53%
5%
11%
24%
2023
16%
52%
29%
76%
2013
5%
39%
47%
32%
68%
0%
10%
Generation Z
20%
30%
Generation Y
40%
50%
Generation X
Source: Deloitte Dynamics of Superannuation Report 2013
60%
70%
Baby Boomers
80%
90%
100%
Silent Generation
RETIRED
>65
HOW DO WE COMMUNICATE WITH
THE CHANGING DEMOGRAPHIC OF
SMSF TRUSTEE?
ADOPTING
TECHNOLOGY CAN
CHANGE YOUR
SMSF BUSINESS
INCREASING
ROLE IN
TECHNOLOGY AS
AN ‘ENABLER’
FOR SMSF
TRUSTEES
SOCIAL MEDIA
IN
AUSTRALIA
65% 45%
20%
of all Australian’s use social
media
use social media to research
products and services
95%
of Australian’s social media
users use Facebook
of all Australian’s user access
social media at least once per
day
Australian social media users
have on average
258
42%
access whilst watching TV
67%
of Australian social media
users access social sites via a
smartphone
Fans or followers
7
hours
On site a week
60%
30%
51%
of large businesses update
their social media every day
of Australian small businesses
use social media
of large businesses measure
their ROI on social media
Source:
2013
Typical Australian Facebooker
spends more than
29%
of small business have no
strategy to drive traffic to their
social media presence
YellowTM Social Media Report
25%
of social media follow brands
82%
of small business social
accounts are run by the owner
or manager of the business
The average investment for a
small business using social
media is
13.7%
of their marketing budget
HOW PREPARED IS YOUR
BUSINESS FOR DISRUPTION?
In the
next 2-3
years,
one-third
of
profession
al
Source: Deloitte Digital Disruption Report 2012
WHAT TO CONSIDER IN
BUILDING YOUR SMSF
BUSINESS MODEL?
Compliance overlay
What statutory obligations must be
provided to ensure compliance with the
Regulators?
Advice stage
What type and level of advice do your
SMSF trustees require? What strategies are
most relevant to add value based on their
stage in life?
Lifecycle stage
Your clients are at what stage of the SMSF
lifecycle? How does your offer fit the
various life cycle stages to serve client
needs?
Trustee behaviours
What do you understand about the
behavior of your clients & prospects?
Do they fit your value proposition?
MASS MARKET
NICHE
MARKET
SEGMENTED
DIVERSIFIED
ASK YOURSELF?
Is your customer segment by
trustee behaviour?
By age demographic?
Is your customer segment the
entire SMSF market?
Do you have multiple service
offerings?
Do you have a niche within the
SMSF sector (i.e. B2b)?
MASS MARKET
QUANTITATIVE
NICHE MARKET
E.g. price or speed of
service
SEGMENTED
QUALITATIVE
E.g. design, customer
experience?
DIVERSIFIED
COMPREHENSIV
ADVICE DELIVERY
E ADVICE
SCALED
ADVICE
GENERAL
ADVICE
FACTUAL
INFORMATIO
N
Limite
d
licenc
e
focus
for
accoun
tants?
MASS MARKET
QUANTITATIVE
NICHE MARKET
E.g. price or speed of
service
SEGMENTED
QUALITATIVE
E.g. design, customer
experience?
DIVERSIFIED
ARE YOU LISTENING TO THE
LATEST TRENDS IN SMSF?
What channels do
your clients want to
be reached on?
What
channels
work best?
What channels
are most costefficient?
How do the
channel(s)
integrate with your
existing client
routines?
QUANTITATIVE
STRATEGIC
E.g. price or speed
of service
JOINT VENTURE
QUALITATIVE
BUYER-SUPPLIER
E.g. design,
customer
experience?
COST-DRIVEN MODEL
VALUE-DRIVEN MODEL
MASS MARKET
NICHE MARKET
SEGMENTED
DIVERSIFIED
WHAT DOES IT
MEAN FOR YOU AS
AN SPECIALIST
SMSF ADVISOR?
Practice Management skills to enable
an adviser to operate an efficient and
effective SMSF business model that is
profitable, and compliant including
customer management, financial
management, staff management,
compliance management.
Specialist SMSF technical skills to
provide legal, accurate and
complete advice which meets the
clients needs and is consistent with
their level of financial literacy,
aligned to their risk appetite
People & Self-Development skills that
equip advisers to manage their own staff
effectively and provide the appropriate
focus on their own personal development
including staying abreast of industry
developments and market trends,
specialisations where appropriate
Interpersonal Excellence skills that
ensure the adviser is a strong
communicator who can clearly
articulate strategies and their benefits,
concerns and risks. Must be an
effective negotiator and influencer.
Business Development skills that
enable the adviser to articulate a
value proposition (i.e. clearly
address the client’s perspective of
‘what’s in it for me’ and that help the
client see the long terms benefits of
ongoing financial advice to enable
financial advice to achieve your life
goals), facilitate cross selling of
services with key partners in your SMSF
business model
Client Engagement skills that enable an
adviser to build and maintain client
relationships as a trusted adviser through
preferred channels. Ability to deliver
financial advice in a manner and at a
level that is appropriate for the client’s
needs
‘TOPICAL’ AREAS TO ADD
VALUE WITH SMSF CLIENTS
Contribution
strategies
Limited
Recourse
Borrowing
Arrangements
Pensions
Estate
Planning
• Changes to caps & ECT reforms
• Reserving / holding accounts
• In-specie asset transfers
• Property improvements
• Key concept considerations
• Insurance strategies
• Restructuring – BRP transfers
• Multi-pension strategies (proportioning rule)
• Pensions as lump sums
• Reversionary pension considerations
• Segregation
• Re-contribution vs. anti-detriment
• Death Benefit nominations
• Blended families
• Intergenerational strategies
LIMITED
RECOURS
E
BORROWI
NG
ARRANGE
MENTS
Lender options
Risk Strategies
 Structuring Insurance
 Tax dependants?
 Bank vs. related party
 Terms incl. interest rate
 Arm’s length dealings
Key concepts
Tax operation
 CGT & Small Business
concessions
 GST issues
 Single acquirable
asset
 Repairs,
Maintaining and
improving
 Different asset
SIS operation
 Related party acquisitions
 Arm’s length dealing
 In-house assets
SMSF
PENSION
PLAN
Transition to Retirement
 Tax optimization with salary sacrifice
and pension levels
 Reboots and other adjustments
Estate considerations
 Recontribution
strategies
 Anti-detriment
payments
 Death Benefit
Nominations
Tax & SIS operation
 Preservation
 Treatment of benefit
payments
 Exempt current pension
income
Structuring
income streams
 Multiple interests,
proportioning rule
 Reversionary
 Insurance
considerations
Investment strategy
 Asset segregation
 Asset mix
10 PREDICTIONS FOR
THE FUTURE OF SERVICE
PROVIDERS IN THE SMSF
INDUSTRY
10 PREDICTIONS FOR THE
SMSF
INDUSTRY
1. Strategic advice will dominate the SMSF advice landscape –
2.
3.
4.
5.
limited advice to significantly practice revenues
Cloud computing will be utilised for more than 90% of all advice,
administration and auditor services
SMSF compliance services will be largely commoditised with
pricing dropping by more than 30%
Institutions will continue strategy to ‘industrialise’ SMSF sector
Specialist SMSF service providers will be establishing more than
70% of all new funds each year
10 PREDICTIONS FOR THE
6. Specialist INDUSTRY
coaches will become a common feature of the
SMSF
advice framework dealing with self-directed trustees on a needs
basis
7. Offshore labour for advice, administration and audit will become
common to retain profit margins
8. Self-directed tools and communities to drive sector growth
9. Pure compliance-based SMSF administration businesses will be
rare, with most providing value-added services (e.g. advice) to
support falling per-job revenues
10.Time-based billing for SMSF compliance will be non-existent, with
package-based fees with fixed pricing
THREE KEY TAKE-AWAYS
TODAY…The dynamics & demographics of the SMSF sector are
changing at a rapid rate – how are you adapting to this
change and the needs of trustees?
Have you considered what your SMSF business model is
going to look like into the future to capitalise on the
growing number of SMSF trustees?
Build specialist knowledge to unlock key SMSF strategies
for your clients and target demographic
Aaron Dunn
The SMSF Academy
www.thesmsfacademy.com.au
SMSF Dunn Right,
http://thedunnthing.com
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