1 00:00:00,000 --> 00:00:02,800 Most Aussies don't know if they'll be able to afford retirement. 2 00:00:03,040 --> 00:00:05,160 With great power comes great responsibility. 3 00:00:05,300 --> 00:00:06,520 ATO's watching everything. 4 00:00:06,620 --> 00:00:07,760 Get it right from the start. 5 00:00:07,940 --> 00:00:10,680 A self-managed super fund is a trust type format 6 00:00:10,680 --> 00:00:13,460 that has a specific rule set that goes with it. 7 00:00:13,600 --> 00:00:14,980 Effectively what it's called, you know, 8 00:00:15,020 --> 00:00:16,640 self-manage their superannuations. 9 00:00:16,840 --> 00:00:20,300 Access different asset classes that they would generally not be able to 10 00:00:20,300 --> 00:00:23,300 access in a traditional superannuation account 11 00:00:23,300 --> 00:00:28,080 such as direct property, gold, private, companies, crypto and bitcoin. 12 00:00:28,080 --> 00:00:33,020 You've got to maintain separation of your superannuation funds from your own personal 13 00:00:33,020 --> 00:00:33,380 funds. 14 00:00:33,540 --> 00:00:37,440 There are some pretty hefty penalties that can be applied by the ATO. 15 00:00:37,540 --> 00:00:40,920 We've had funds that are being set up within less than four weeks. 16 00:00:41,180 --> 00:00:46,480 I've been working within the Self-Managed Super Fund for 25 years now, working with 17 00:00:46,480 --> 00:00:51,420 accounting firms, financial planning firms, software companies. 18 00:00:51,660 --> 00:00:55,960 The joy and what I find so amazing within the Self-Managed Super Fund is you can actually 19 00:00:55,960 --> 00:00:57,740 take Bitcoin into self-custody. 20 00:00:57,740 --> 00:01:00,740 you can take the power, you can take control and... 21 00:01:05,840 --> 00:01:09,600 Simon, most Aussies don't know if they'll be able to afford retirement. 22 00:01:09,800 --> 00:01:14,100 Some estimates say we need about $3 million in today's dollars to be self-funded. 23 00:01:14,400 --> 00:01:17,740 Most workers are relying on the traditional superannuation fund 24 00:01:17,740 --> 00:01:20,720 that may or may not be just keeping up with inflation. 25 00:01:21,260 --> 00:01:23,360 Simon, you help people take control of their retirement 26 00:01:23,360 --> 00:01:25,920 by setting up what's called a self-managed super fund. 27 00:01:25,920 --> 00:01:32,740 I guess the first question, what exactly is a self-managed super fund and how does it differ from a superannuation account? 28 00:01:33,300 --> 00:01:40,440 Yeah, so you're right. Many people are relying on their traditional super and generally don't think of SMSF as an option. 29 00:01:40,720 --> 00:01:55,680 To answer your question, a self-managed super fund is essentially a trust type format that has a specific rule set that goes with it to enable people, as you say, to effectively what it's called self-manage their superannuation. 30 00:01:55,680 --> 00:02:10,860 So as opposed to having a corporate trustee or one of the larger industry funds managing their superannuation, they can set up a self-rentice super fund and act as their own trustee for that self-rentice for their retirement. 31 00:02:12,080 --> 00:02:21,820 It allows them to access different asset classes that they would generally not be able to access in a traditional superannuation account. 32 00:02:21,820 --> 00:02:28,000 Many of the larger industry and corporate funds are restricted to different asset types, 33 00:02:28,140 --> 00:02:34,580 things such as direct property, gold, bullion, other sort of asset classes, private companies, 34 00:02:34,940 --> 00:02:37,680 and things such as crypto and Bitcoin. 35 00:02:38,060 --> 00:02:43,740 So by setting up a self-managed super fund, you get those additional options to invest 36 00:02:43,740 --> 00:02:49,700 it, the investor or super, however you choose within those parameters and effectively, as 37 00:02:49,700 --> 00:02:52,520 as we say, take control of it yourself and manage it. 38 00:02:52,520 --> 00:02:59,220 The thing that comes with that, though, is a large rule set of legislation that you need to, 39 00:02:59,400 --> 00:03:03,700 as trustees, adhere to within your operation of that fund. 40 00:03:03,840 --> 00:03:06,560 It is still classed as superannuation. 41 00:03:06,840 --> 00:03:10,980 So all of the standard rules that apply to your standard superannuation apply to it. 42 00:03:11,060 --> 00:03:14,900 But also because it's self-managed, you have what they call, 43 00:03:14,900 --> 00:03:20,240 You've got to maintain separation of your superannuation funds from your own personal 44 00:03:20,240 --> 00:03:20,600 funds. 45 00:03:20,760 --> 00:03:27,440 So you can't utilize those superannuation monies for assisting family members or yourself. 46 00:03:27,680 --> 00:03:33,920 You can't invest in assets that are related to you, such as purchasing a residential property 47 00:03:33,920 --> 00:03:36,720 from a member or a related party. 48 00:03:36,960 --> 00:03:40,140 You can purchase property, but not from a related party, things like that. 49 00:03:40,140 --> 00:03:52,760 So a firm such as what we do and other accounting firms generally are out there to help trustees manage that sort of the operations of the self-wintering superfarm within those rules. 50 00:03:52,960 --> 00:03:58,360 Because you break those rules and step outside the lines of what you're allowed to do. 51 00:03:58,480 --> 00:04:07,920 There are some pretty hefty penalties that can be applied by the ATO towards the trustees as well as fines and whatnot as well. 52 00:04:07,920 --> 00:04:15,520 So it opens some good options, but also you've got to stick to the rules as well. 53 00:04:15,680 --> 00:04:16,040 Interesting. 54 00:04:16,280 --> 00:04:20,380 As a good rule of thumb, Simon, I'd like you to let me know if this is fair. 55 00:04:20,520 --> 00:04:31,200 Like when you set up a self-managed super fund, you basically, or it's similar to becoming like a director of a company or a trust, you're managing that structure there. 56 00:04:31,540 --> 00:04:34,700 Its sole purpose is really for your retirement. 57 00:04:34,700 --> 00:04:41,620 Like you're saying, you can't use it to be able to buy things off family members or people related to the family and stuff. 58 00:04:41,740 --> 00:04:49,280 But I guess more importantly, you can't use the self-managed super fund in any way while you're still working to benefit your life. 59 00:04:49,360 --> 00:04:51,360 It's simply you're just taking control of it. 60 00:04:51,420 --> 00:04:52,200 You're managing it. 61 00:04:52,240 --> 00:05:03,260 You're setting it up so that when you get to the retirement, you've obviously chosen what you've invested in with the hopes that it's going to outperform a traditional superannuation fund. 62 00:05:03,260 --> 00:05:08,560 but even if say in the next five years and you're not going to retire for another 20 years you get 63 00:05:08,560 --> 00:05:15,620 you know a thousand percent gain and bitcoin for example you can't take any of that and use it in 64 00:05:15,620 --> 00:05:22,820 your day-to-day life it has to stay separated for retirement specifically yeah so so all the 65 00:05:22,820 --> 00:05:27,700 monies within the superannuation whether it's super in the standard sense or a self-managed super 66 00:05:27,700 --> 00:05:31,720 Yeah, it must be kept there for your retirement needs. 67 00:05:31,840 --> 00:05:37,720 You can't access it outside of the standard, what they call conditions of release. 68 00:05:38,000 --> 00:05:47,460 So a condition of release is the standard set of rules that allow you to access your superannuation, 69 00:05:47,640 --> 00:05:51,280 whether it's inside of a self-wanted super fund or a regular super fund. 70 00:05:51,480 --> 00:05:53,780 Most of those conditions relate to retirement. 71 00:05:53,780 --> 00:06:00,720 There are circumstances where you can access it earlier, but they come with very strict rule sets around that. 72 00:06:01,020 --> 00:06:11,520 But in general, yes, you can't access it for any personal circumstances before those time or conditions have been met. 73 00:06:12,580 --> 00:06:23,180 You generally just have to look at it as, you know, you look at your, say you've got your fund in an Australian super or one of the other standard industry funds. 74 00:06:23,180 --> 00:06:27,200 you know everyone sort of has that it's building up your contributions are going to it you know 75 00:06:27,200 --> 00:06:33,520 it's there it's it's doing its thing you can't really touch it and till you can it's with self 76 00:06:33,520 --> 00:06:37,740 renter super it's the exact same conditions that apply to it it's just that you can um 77 00:06:37,740 --> 00:06:45,440 in you know manage it more directly so you can within a self-renter super fund your you are the 78 00:06:45,440 --> 00:06:50,540 as the trustee of the fund the controlling mechanism so to say in terms of whether you're 79 00:06:50,540 --> 00:06:57,720 buying listed shares or property or crypto or Bitcoin or any other asset class that's allowed 80 00:06:57,720 --> 00:07:05,240 within the investment strategy of the fund. So by doing that, the buck stops with you, 81 00:07:05,280 --> 00:07:12,520 as you say, that you are effectively the director and corporate and trustee of the fund. So while 82 00:07:12,520 --> 00:07:17,640 you're the one responsible for making the investments and operating the fund, you're also 83 00:07:17,640 --> 00:07:23,580 the one that's ultimately responsible if you go outside those rule sets and do break the rules and 84 00:07:23,580 --> 00:07:30,620 do be penalized by the ATO. So yeah, the SMSF comes with a trust deed and that trust deed sets 85 00:07:30,620 --> 00:07:37,160 out the rules of what the trustees can and can't do within that SMSF. Generally, they are in line 86 00:07:37,160 --> 00:07:42,560 with what the legislation says you're allowed to do within CIS. In fact, they have to because you 87 00:07:42,560 --> 00:07:47,980 can't contradict each other but you know that's effectively your guiding document for how you're 88 00:07:47,980 --> 00:07:52,320 going to run that fund and you know if you go outside of it you know you can be i guess you 89 00:07:52,320 --> 00:07:57,760 know penalized you know for for breaking those rules but ultimately it's it's if you're doing 90 00:07:57,760 --> 00:08:01,980 the right thing with it you don't necessarily have to worry about breaking those rules because 91 00:08:01,980 --> 00:08:07,140 you're doing it for your retirement savings um and death benefits and things like that so you can just 92 00:08:07,140 --> 00:08:12,460 you know follow the rules invested how you want to invest it and like i say you know hopefully 93 00:08:12,460 --> 00:08:15,020 you're getting the investment returns you want. 94 00:08:15,380 --> 00:08:19,320 And then once you meet that retirement conditions, 95 00:08:19,320 --> 00:08:22,100 you can then use it for your retirement savings, 96 00:08:22,220 --> 00:08:25,900 whether or not you're keeping it within the super environment, 97 00:08:26,100 --> 00:08:29,920 whether pensions or income streams out of it, 98 00:08:29,940 --> 00:08:32,440 or you're taking out your benefits as lump sum payments. 99 00:08:32,620 --> 00:08:34,740 You've got those options once you meet those conditions. 100 00:08:35,100 --> 00:08:37,440 I don't mean to scare anyone off. 101 00:08:37,600 --> 00:08:40,840 Like you guys make it super simple to be able to stay compliant 102 00:08:40,840 --> 00:08:43,800 and to be able to set it up and go through that process. 103 00:08:44,060 --> 00:08:45,960 And people like I've got you up on the website 104 00:08:45,960 --> 00:08:49,140 and we'll introduce Udo in a moment 105 00:08:49,140 --> 00:08:51,400 and your company and a little bit of your backstory. 106 00:08:52,080 --> 00:08:53,380 But it's not hard. 107 00:08:53,460 --> 00:08:55,800 But I guess the reason I was asking that line of questioning 108 00:08:55,800 --> 00:08:59,100 is with like great power comes great responsibility. 109 00:08:59,100 --> 00:09:01,920 You can take the power, you can take control. 110 00:09:02,320 --> 00:09:04,300 And for me, I'll tell you about my story 111 00:09:04,300 --> 00:09:07,460 about why I went into a self-managed super fund. 112 00:09:07,460 --> 00:09:10,660 But just know that there are things out there 113 00:09:10,660 --> 00:09:12,420 Like the ATO is watching everything. 114 00:09:12,420 --> 00:09:16,000 And just to get it right from the start is probably an easier way. 115 00:09:16,240 --> 00:09:19,440 And to be able to talk to a professional, somebody like yourself, Simon, 116 00:09:19,800 --> 00:09:23,800 that can guide people that understands Bitcoin, the assets class, the compliance. 117 00:09:23,800 --> 00:09:28,440 You've got everyone there a whole lot easier than just going out, trying to do it yourself. 118 00:09:28,440 --> 00:09:32,140 And then maybe getting to the end of the financial year and you're like, oh, I stuffed up. 119 00:09:32,140 --> 00:09:36,360 But that stuff up and hindsight could have been mitigated and it wouldn't have been an issue. 120 00:09:36,360 --> 00:09:40,400 But if you do have these things, the ATO is coming for everyone. 121 00:09:40,660 --> 00:10:01,900 But first, before we get too far, would you be able to take a moment just to be able to tell the audience about UDU Superfund or UDU Superfund and yourself, Simon, your history with self-managed super funds and within the space and helping people take control of their retirement, which ultimately I think is another step towards freedom and self-sovereignty? 122 00:10:01,900 --> 00:10:16,620 Yeah. Yeah. So my personal experience within self-rentice super is I've been working in some form within the self-rentice super fund for, you know, 25 years now. 123 00:10:17,160 --> 00:10:19,340 Sounds weird to say that, but I have been. 124 00:10:19,340 --> 00:10:25,940 So working with accounting firms and financial planning firms, software companies. 125 00:10:25,940 --> 00:10:37,080 Over that time, I've generally done just about everything you can do in the SMSF space from the day-to-day accounting and administration, 126 00:10:37,620 --> 00:10:41,580 involved in audit processing, auditing of the self-managed super funds. 127 00:10:42,400 --> 00:10:46,520 As I said, working at software companies, worked at Class Super for a while, 128 00:10:46,520 --> 00:10:55,820 which is a specific accounting firm, accounting software that accountants use to manage their self-managed super funds. 129 00:10:55,940 --> 00:11:08,280 And then, you know, 2016, 17, we decided to, you know, set our own SMSF accounting firm up called Udo SMSF. 130 00:11:08,620 --> 00:11:11,240 And, yeah, pretty much been running it since then. 131 00:11:12,380 --> 00:11:20,960 Yeah, myself, I have a sort of personal exposure to the Bitcoin and crypto markets, you know, investing. 132 00:11:20,960 --> 00:11:26,220 and sort of took the whole round trip in terms of, you know, jumping in, 133 00:11:26,660 --> 00:11:31,040 getting on the Bitcoin wave as it went up and back down and then back up again. 134 00:11:31,820 --> 00:11:36,060 And then started getting more and more questions and queries from clients 135 00:11:36,060 --> 00:11:41,800 and potential clients that wanted to get exposure to the crypto market. 136 00:11:41,800 --> 00:11:46,420 In general, it's mostly Bitcoin that we're seeing clients wanting to get exposure to. 137 00:11:46,420 --> 00:11:53,880 so we we decided to you know apply our expertise in terms of self-rentice super fund self-rentice 138 00:11:53,880 --> 00:11:58,780 super funds and how you can add that sort of asset class to your funds and and sort of yeah 139 00:11:58,780 --> 00:12:04,540 assisting clients that wanted to you know go ahead with getting that exposure because as i said 140 00:12:04,540 --> 00:12:10,820 earlier the the compliance regime is is quite strict with all asset classes when it comes to 141 00:12:10,820 --> 00:12:16,400 self-branded super fund but with crypto and especially bitcoin it's not just the standard 142 00:12:16,400 --> 00:12:19,940 i'm just going to go out and buy something it's like you know how do i do it under the right 143 00:12:19,940 --> 00:12:36,508 structure how do i own it and store it in the right way that a safe and secure but also compliant with the smsf rule sets how do i go about setting up an SMSF in the first place that you know is personally going to be compliant 144 00:12:36,508 --> 00:12:39,708 Because as you say, it seems easy to go about the process, 145 00:12:39,848 --> 00:12:43,348 but then to actually do it and get it from, you know, 146 00:12:43,428 --> 00:12:46,688 oh, I want to set up a self-managed super fund to actually getting it done 147 00:12:46,688 --> 00:12:51,328 and rolling your funds over from your existing fund is a bit of a trick. 148 00:12:51,328 --> 00:13:09,268 And so we've developed our service around making that process for clients, whether they want to go into Bitcoin or crypto or any other asset class, you know, a smooth process for them so that they can achieve their goals and take the ownership and control of their financial future that they want to do. 149 00:13:09,268 --> 00:13:27,108 So, Jen, that's sort of where we've ended up sort of partnering with firms such as, and people such as yourself that are out there educating Australians in both the, I guess, the Bitcoin narrative in general, but also the safe and secure ownership aspect of it. 150 00:13:27,108 --> 00:13:30,948 because I think in general, that's obviously quite key. 151 00:13:31,028 --> 00:13:37,048 But when you're adding an extra layer of your superannuation savings to it, 152 00:13:37,468 --> 00:13:41,288 you need to make sure that you know what you're doing, 153 00:13:41,368 --> 00:13:42,588 you're knowing how you're going to store it, 154 00:13:42,588 --> 00:13:46,628 and you're knowing how you're going to secure it and keep it safe and secure. 155 00:13:46,928 --> 00:13:50,388 Some people, they're 30 years off retirement. 156 00:13:50,668 --> 00:13:55,548 So having that asset class, assets stored safe and securely 157 00:13:55,548 --> 00:13:57,608 is quite an important step, 158 00:13:57,748 --> 00:14:00,248 which is quite different from your standard investments 159 00:14:00,248 --> 00:14:02,208 that you would have in a self-rentice super fund. 160 00:14:02,588 --> 00:14:05,208 Generally, you would have them in, say, listed shares 161 00:14:05,208 --> 00:14:08,888 or managed funds or held by direct property, 162 00:14:08,888 --> 00:14:11,008 which all have their own sort of fairly standard, 163 00:14:11,328 --> 00:14:13,388 safe ways of owning those 164 00:14:13,388 --> 00:14:16,008 that Bitcoin doesn't necessarily come with. 165 00:14:16,368 --> 00:14:17,968 But then, as you would know, 166 00:14:18,488 --> 00:14:22,268 well, there are risks associated with Bitcoin. 167 00:14:22,488 --> 00:14:23,808 There are ways to mitigate them 168 00:14:23,808 --> 00:14:28,468 and keep that risk level as low as it can be. 169 00:14:28,688 --> 00:14:31,868 So that's why we like to partner with people 170 00:14:31,868 --> 00:14:33,788 that are in that space of educating 171 00:14:33,788 --> 00:14:36,788 on the security and risk level 172 00:14:36,788 --> 00:14:39,188 and then also providing a secure solution 173 00:14:39,188 --> 00:14:43,168 in terms of how they can implement that process. 174 00:14:43,608 --> 00:14:45,548 If you've still got your Bitcoin on exchange 175 00:14:45,548 --> 00:14:47,828 or you're looking to take your Bitcoin security 176 00:14:47,828 --> 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And just to speak on that a little bit more, to riff on that more, 204 00:16:47,408 --> 00:16:54,068 like you're saying, some people could be 30, 35 years away from retirement. And to be able to buy 205 00:16:54,068 --> 00:17:00,628 Bitcoin now, in the last five years, it's been going up 55% per year. If that drops down to, 206 00:17:01,108 --> 00:17:07,448 say, 20%, 15%, whatever, and it's just a couple of percentage points more of inflation or whatever, 207 00:17:07,668 --> 00:17:12,088 I think we've still got a while. But anyway, over 30 years, Bitcoin is going to be worth a whole lot 208 00:17:12,088 --> 00:17:17,448 more in my opinion but that's a long time where you're opening yourself up to the possibility of 209 00:17:17,448 --> 00:17:22,488 just losing your keys that's super easy to be able to place it stuffing up the multi-sig if 210 00:17:22,488 --> 00:17:27,168 people go down that path maybe not having the correct inheritance plan wrench attacks and then 211 00:17:27,168 --> 00:17:32,548 there's just so there's those things and like training and mentorship um can help with that 212 00:17:32,548 --> 00:17:37,588 people like the bitcoin way can mitigate that but then you can also some people like oh like that's 213 00:17:37,588 --> 00:17:41,968 too hard to be able to take it into self-custody no it's just a couple of steps and again like the 214 00:17:41,968 --> 00:17:47,008 Bitcoin way and people can teach people. So they'll learn that side of things. But as some people 215 00:17:47,008 --> 00:17:52,648 like, I want to buy Bitcoin and I'm just going to leave it on the exchange. CoinSpot, for example, 216 00:17:52,648 --> 00:17:59,228 is only insured up to $250,000 Australian. So say you have a million dollars in Bitcoin there 217 00:17:59,228 --> 00:18:05,368 and the exchange goes bust, you'll get $250,000 in cash back, but that's probably not going to 218 00:18:05,368 --> 00:18:10,428 be enough to be able to replace your stack and things like that. So I guess the joy and what I 219 00:18:10,428 --> 00:18:15,488 find so amazing within the self-managed super fund and this is my story is you can actually take 220 00:18:15,488 --> 00:18:20,428 bitcoin into self-custody and then you can learn the tools and the skills to be able to protect it 221 00:18:20,428 --> 00:18:26,848 so it will be there in like 30 years time because my story simon is i was employed and i called up 222 00:18:26,848 --> 00:18:34,108 um like the industry super fund that i was with and i'm like can you guys allocate just a little 223 00:18:34,108 --> 00:18:40,368 bit of my money towards bitcoin they're like no we can't do that i'm like got on google i'm like 224 00:18:40,368 --> 00:18:44,728 how do I buy Bitcoin with my superannuation? And it's like, you can't buy Bitcoin with your 225 00:18:44,728 --> 00:18:52,408 superannuation. I'm like, is there any way to be able to buy Bitcoin with my money for retirement? 226 00:18:52,568 --> 00:18:57,248 It's like, well, you can roll over into a self-managed super fund and do that. So that's 227 00:18:57,248 --> 00:19:02,548 what I ended up doing. I didn't have much money in my superannuation account at that stage. And 228 00:19:02,548 --> 00:19:07,488 then obviously just with time and Bitcoin's performance, it's done that, which has been 229 00:19:07,488 --> 00:19:13,628 amazing and the way that I went about it originally was with a another company and that's why I reached 230 00:19:13,628 --> 00:19:18,788 out to you guys I had to do pretty much everything myself I had to fill in all the information they 231 00:19:18,788 --> 00:19:24,688 did a little bit but then come the end of the year when it's the compliance time I had to do like 232 00:19:24,688 --> 00:19:29,928 pretty much absolutely everything and it's so hard not coming from like a financial background 233 00:19:29,928 --> 00:19:35,448 or the understanding to make sure that I'm staying compliance and I'm giving the ATO the information 234 00:19:35,448 --> 00:19:37,408 that they actually need and want. 235 00:19:37,728 --> 00:19:39,788 And then they'd like keep coming back and stuff. 236 00:19:39,888 --> 00:19:41,768 And you're like, you're missing this or doing that. 237 00:19:41,928 --> 00:19:44,268 So I'm like, fuck, there's got to be able to be a better way. 238 00:19:44,368 --> 00:19:45,128 And they're so slow. 239 00:19:45,208 --> 00:19:46,908 Like my mom went through that same company 240 00:19:46,908 --> 00:19:49,848 and it took them 14 months from start to finish 241 00:19:49,848 --> 00:19:53,048 to actually roll over the superannuation account. 242 00:19:53,228 --> 00:19:54,308 Like it was just crazy. 243 00:19:54,408 --> 00:19:58,108 There's holdups with the self-managed super fund company itself. 244 00:19:58,108 --> 00:20:00,668 The superannuation company that she's rolling out of 245 00:20:00,668 --> 00:20:03,008 with the ATO was the biggest roadblock as well. 246 00:20:03,128 --> 00:20:04,668 So that's when I reached out to you guys. 247 00:20:04,668 --> 00:20:09,468 and what there's got to be a better way found out that you understand bitcoin predominantly crypto 248 00:20:09,468 --> 00:20:16,848 as well but you help people but then come the end of the year instead of me having to do all the work 249 00:20:16,848 --> 00:20:21,608 you'll actually take like a lot of that pressure off and help people around the compliance can you 250 00:20:21,608 --> 00:20:27,088 talk to that a little bit because i find that is the thing that's like the hardest barrier people 251 00:20:27,088 --> 00:20:31,168 like if i leave it in my superannuation i don't need to do anything like it's probably not going 252 00:20:31,168 --> 00:20:36,868 outpaced inflation maybe maybe just but it's easy i don't need to think about it it's just there 253 00:20:36,868 --> 00:20:41,948 whereas when they take control they need allocates to the investments throughout the year they need 254 00:20:41,948 --> 00:20:46,368 to be having the meetings and stuff but then come the end of the year when you need to send 255 00:20:46,368 --> 00:20:51,588 everything to the ato be like this seems like a big job and if you do it yourself it actually is 256 00:20:51,588 --> 00:20:56,628 a big job and it's pretty hard but then you take a bit of that pressure off and you help people 257 00:20:56,628 --> 00:21:03,388 Yeah, so that's the experience of a lot of clients that get into self-managed super funds. 258 00:21:03,688 --> 00:21:09,788 And I mean, it applies to all types of self-managed super funds, not just people that want to invest in crypto as well. 259 00:21:09,788 --> 00:21:26,488 As I've said, my history in the self-managed super industry has been working for firms that effectively doing exactly what you said is making that process and that job as simple as it is streamlined as possible for the trustees so that the whole process doesn't become a headache. 260 00:21:26,628 --> 00:21:28,028 And why did I do this? 261 00:21:28,048 --> 00:21:28,908 I just want to get it up. 262 00:21:28,968 --> 00:21:30,148 I don't want to have to think about it. 263 00:21:31,028 --> 00:21:37,268 And, you know, our service is designed around that aspect of, you know, we call it a concierge, 264 00:21:37,268 --> 00:21:43,328 especially with the setting up of your self-management, you find the concierge service in terms of, you know, 265 00:21:43,528 --> 00:21:46,088 where they're, we've got the whole process mapped out. 266 00:21:46,348 --> 00:21:51,908 We guide the client and the trustee every step of the way to move it to the next stage in the process 267 00:21:51,908 --> 00:21:57,008 and making sure they've ticked all the right boxes, 268 00:21:57,568 --> 00:21:58,828 sent all the right forms off, 269 00:21:58,928 --> 00:22:00,828 sent the right things to the right places. 270 00:22:01,128 --> 00:22:02,988 And then once you've got the funds set up 271 00:22:02,988 --> 00:22:04,088 throughout the year, 272 00:22:04,428 --> 00:22:06,988 firstly, you know, okay, I've set it up. 273 00:22:07,048 --> 00:22:08,308 I've got the money now. 274 00:22:08,448 --> 00:22:10,768 How do I do the investment that I want to do? 275 00:22:10,848 --> 00:22:12,588 Whether you're working with a financial advisor 276 00:22:12,588 --> 00:22:13,948 or you're doing it yourself, 277 00:22:13,948 --> 00:22:17,048 we integrate with whichever way you want to do it. 278 00:22:17,228 --> 00:22:19,628 We work with a lot of financial advisors as well. 279 00:22:19,628 --> 00:22:23,548 And then, you know, the record keeping process is the same as running a company. 280 00:22:23,728 --> 00:22:25,468 You know, you're a director of a company. 281 00:22:25,628 --> 00:22:27,008 You've got your operations going. 282 00:22:27,168 --> 00:22:28,468 You're just doing yourself throughout the year. 283 00:22:28,508 --> 00:22:35,588 But then you've got the whole bookkeeping aspect of it, of keeping track of your bank accounts, keeping track of your invoicing and things like that. 284 00:22:35,788 --> 00:22:37,428 Self-prime is super compliance. 285 00:22:37,508 --> 00:22:38,448 It's effectively the same. 286 00:22:38,548 --> 00:22:42,008 But it's actually, you know, it has a whole extra layer to it as well. 287 00:22:42,008 --> 00:23:00,168 We're there to collate all of that throughout the year for the trustees and then, again, make that end of year process, generally compiling all the data into the financial statements and tax return, managing, making sure we have all the right documents in place. 288 00:23:00,168 --> 00:23:06,068 you know and generally we'll get where we can do it we'll you know manage it for the client on behalf 289 00:23:06,068 --> 00:23:11,308 of them but also you know if they if it's something the client you know does have to do you know where 290 00:23:11,308 --> 00:23:16,008 they'd be like yeah okay this is the next step this is what you need to do we also are there to 291 00:23:16,008 --> 00:23:20,608 guide the clients when they want to do something different throughout the year so you know you 292 00:23:20,608 --> 00:23:27,208 you might decide okay well i want to flip half of my investment into into a property so how do i do 293 00:23:27,208 --> 00:23:32,208 that you know which properties can i buy what structures do i need if i want to do if i want 294 00:23:32,208 --> 00:23:37,628 to borrow or am i going to buy it outright you know how do we do that uh yeah so we can either 295 00:23:37,628 --> 00:23:43,488 guide them in you know the right steps or you know we work with a lot of partners as well in terms of 296 00:23:43,488 --> 00:23:51,508 referring out to um the different partners that you would need to to get those you know plans 297 00:23:51,508 --> 00:23:59,888 implemented we're also there to make sure that the clients don't uh accidentally step out of line 298 00:23:59,888 --> 00:24:05,908 because that happens a lot you know a client something that seems obvious oh i can do this 299 00:24:05,908 --> 00:24:12,548 uh you know it's you know you don't know that what you don't know but you know we're there to sort of 300 00:24:12,548 --> 00:24:18,708 guide that process of okay we want to do this this is how we do it we do it xyz and it's generally 301 00:24:18,708 --> 00:24:33,188 We generally encourage our clients to speak to us first before they go and do anything new or drastic because, as you were saying as well, a lot of times it's harder to fix it after you've made that mistake. 302 00:24:33,908 --> 00:24:39,948 So it's best to sort of just take five minutes to give us a call or shoot us an email and we can guide you with that. 303 00:24:40,148 --> 00:24:46,288 But yeah, that's our ultimate goal as a firm is to make the process as streamlined as possible and also affordable. 304 00:24:46,288 --> 00:24:52,528 like you know our fee structures are you know very competitive with with um most of the farms 305 00:24:52,528 --> 00:25:08,196 here in australia that are in this space but yeah and but yeah making sure we sort of scaling that with keeping the the processes smooth and streamlined for for both them and both them and us because we don want to make our job any harder than it needs to be either 306 00:25:08,196 --> 00:25:13,636 And with our experience that we've had over the 20 years of operating in the SMSF space, 307 00:25:13,756 --> 00:25:21,616 we've got processes and procedures that we implement up front with the clients, 308 00:25:21,616 --> 00:25:25,556 but also behind the scenes that the client doesn't even see in terms of, 309 00:25:25,556 --> 00:25:25,796 you know, 310 00:25:25,796 --> 00:25:26,376 managing that, 311 00:25:26,436 --> 00:25:29,976 that whole process that we can get everything done that needs to be done. 312 00:25:30,236 --> 00:25:30,396 Basically. 313 00:25:30,596 --> 00:25:31,956 Earlier you were saying like, 314 00:25:31,996 --> 00:25:35,056 you've got all those process and procedures mapped out. 315 00:25:35,056 --> 00:25:38,736 I think maybe a better phrase would be like dialed in or locked in. 316 00:25:38,876 --> 00:25:41,836 Like you're just so focused and you just travel down that path. 317 00:25:42,356 --> 00:25:43,396 But one thing, 318 00:25:43,516 --> 00:25:46,296 if you wouldn't mind speaking about Simon as you know, 319 00:25:46,376 --> 00:25:46,936 with my mom, 320 00:25:47,016 --> 00:25:50,196 it's going to take about 14 months with the ATO and with the, 321 00:25:50,196 --> 00:25:55,256 another self-managed super fund, which was crazy. There's just some small little things and no help 322 00:25:55,256 --> 00:26:00,656 or assistance to be able to push through those things. But you, on average, move people through 323 00:26:00,656 --> 00:26:06,636 like down those rails in such a quicker pace. Can you talk to that a little bit? Like what the 324 00:26:06,636 --> 00:26:12,976 usual timeframes are from somebody initially by going to the website, g'daybitcoin.com forward 325 00:26:12,976 --> 00:26:19,576 slash SMSF, booking a call, having a free chat. Then from there, from that initial phone call, 326 00:26:19,576 --> 00:26:21,136 What are the steps? 327 00:26:21,276 --> 00:26:21,836 What are the processes? 328 00:26:21,956 --> 00:26:22,916 What are people looking at? 329 00:26:23,056 --> 00:26:24,036 Time frame, et cetera. 330 00:26:24,516 --> 00:26:24,676 Yeah. 331 00:26:24,796 --> 00:26:30,136 So in general, after you have a call with our team and then you've made the decision to 332 00:26:30,136 --> 00:26:35,076 push forward, there'll be a process to fill in that sort of our application form, which 333 00:26:35,076 --> 00:26:36,876 our team will help you through. 334 00:26:37,096 --> 00:26:42,476 But from that point, our general, our time frame at the moment is running sort of between 335 00:26:42,476 --> 00:26:43,876 four to six weeks. 336 00:26:44,956 --> 00:26:45,536 Let's go. 337 00:26:45,536 --> 00:26:52,136 Again, as you say, we've got the process mapped out and, like I say, dialed in as much as we can. 338 00:26:52,416 --> 00:26:57,096 Unfortunately, there's aspects to the process that are outside our control. 339 00:26:57,436 --> 00:27:02,116 We know most of the ins and outs of that process. 340 00:27:02,116 --> 00:27:11,176 So we've got most of our applications go through quite smoothly because we know what the ATO is going to want. 341 00:27:11,276 --> 00:27:14,676 We know what the bank accounts are going to ask for. 342 00:27:14,676 --> 00:27:21,116 We know the processes that the other super funds where we're going to be rolling the funds over for are going to ask for. 343 00:27:21,216 --> 00:27:27,776 So we have, you know, we map out and guide the clients in terms of, okay, we're at this stage now. 344 00:27:27,856 --> 00:27:29,536 You're going to need to provide this, this, and this. 345 00:27:29,876 --> 00:27:30,936 We need this, this, and this. 346 00:27:31,596 --> 00:27:37,616 And as I said, at the moment, you know, we've had funds that are being set up within less than four weeks. 347 00:27:37,916 --> 00:27:40,636 But, you know, the rough average is, you know, four to six weeks. 348 00:27:40,636 --> 00:27:48,336 You know, like I said, there are things that unfortunately are outside our control, ATO being one. 349 00:27:50,756 --> 00:27:52,636 They're joyful to deal with, aren't they? 350 00:27:52,736 --> 00:27:54,416 Aren't they just an amazing organization? 351 00:27:55,196 --> 00:27:55,396 Yeah. 352 00:27:55,936 --> 00:27:59,636 I mean, you know, they are painful. 353 00:28:00,496 --> 00:28:02,776 You know, they do serve a purpose, obviously. 354 00:28:02,996 --> 00:28:05,776 They're there to, you know, keep us all in line. 355 00:28:05,776 --> 00:28:14,296 And, you know, in some of their processes, while they seem painful, you know, they are ultimately, you know, they're trying to protect clients and trustees. 356 00:28:14,676 --> 00:28:18,056 And that's we don't work with them from an adversarial aspect. 357 00:28:18,056 --> 00:28:26,276 We're there to, you know, answer their questions and help grease the wheels with whatever information they want and basically get the outcome from the client. 358 00:28:26,396 --> 00:28:28,496 Because in the end, they want that outcome as well. 359 00:28:28,756 --> 00:28:31,436 You know, while it can be painful, we, you know, we're there. 360 00:28:31,436 --> 00:28:41,196 That's part of what our service is, is to be there, to be that sort of contact to the, you know, conduit to the ATO to get the process moving and keep it going. 361 00:28:41,396 --> 00:28:43,696 Then you've got things like, you know, setting up the banks. 362 00:28:44,496 --> 00:28:58,616 One of the things we're finding, especially in recent years, you know, it's a bit of an ordeal to open a bank account just in general these days, but especially when you're adding the self-runner super component to it. 363 00:28:58,616 --> 00:29:09,096 So again, making sure that, you know, all the right documents are in place, you know, providing the ID that the client, that the banks want through to the next stage of the rollover. 364 00:29:09,216 --> 00:29:15,416 So again, the rollover, the other super funds, they've got a process that they have to adhere to. 365 00:29:15,636 --> 00:29:24,116 And again, you know, while sometimes it can seem painful to deal with them, you know, they're ultimately just protecting the client's needs as well. 366 00:29:24,116 --> 00:29:32,936 So we're there to answer and provide the information that they need so that they can process the transactions that the clients are requesting. 367 00:29:33,336 --> 00:29:37,516 That, you know, whatever they're in within the inside the rule sets, there's no reason to deny that. 368 00:29:37,796 --> 00:29:37,936 Yeah. 369 00:29:39,176 --> 00:29:41,436 I'm glad it's you dealing with them, not me. 370 00:29:41,516 --> 00:29:46,556 You definitely have a lot more patience dealing with super funds and the ATO. 371 00:29:46,676 --> 00:29:46,896 Yeah. 372 00:29:47,216 --> 00:29:50,456 You're saying like you don't approach it from an adversarial point of view. 373 00:29:50,456 --> 00:29:56,556 And when I get on the phone with the ATO, once you get through to them, they're actually pretty helpful and pretty nice. 374 00:29:56,676 --> 00:30:02,016 But it's the wait times and just needing to call up five times to be able to get something done. 375 00:30:02,176 --> 00:30:08,056 So I'm so grateful it's you, not me, helping people get through. 376 00:30:08,076 --> 00:30:11,756 A lot of the times it's just knowing the terminology and the things that they're asking for. 377 00:30:12,616 --> 00:30:13,976 It's not a language, mate. 378 00:30:14,196 --> 00:30:14,616 Yeah, it is. 379 00:30:14,616 --> 00:30:14,956 It is. 380 00:30:14,956 --> 00:30:26,676 And then, you know, a client will speak to the ATO and the ATO is asking them about one thing and the client may have no clue what it is, but they say to us, it's like, yep, yep, bang, bang, yeah, we know what that is. 381 00:30:26,736 --> 00:30:27,416 We'll sort that out. 382 00:30:28,576 --> 00:30:33,596 And that's, you know, it's the same across the board in the financial services and accounting industry. 383 00:30:33,716 --> 00:30:36,596 That's, you know, that's what we're there for, for the clients. 384 00:30:36,936 --> 00:30:37,456 So, yeah. 385 00:30:37,636 --> 00:30:39,796 Well, it's not fun sitting on hold for 45 minutes. 386 00:30:39,936 --> 00:30:41,376 Yeah, that's part of what we're here for. 387 00:30:41,856 --> 00:30:43,756 It's not fun and their music's the worst. 388 00:30:43,756 --> 00:30:58,056 A couple of things that you're saying is like, you'll help people push through those hangups and you know what the hangups are and you can just continue to make it happen to sort of hit that four to six weeks. 389 00:30:58,056 --> 00:31:08,836 What are the most common hangups when someone's like, I'm going to set up a self-managed super fund and for example, I'm going to buy Bitcoin and then they're like, need to go through that process. 390 00:31:09,156 --> 00:31:12,256 And then sometimes there are roadblocks or hangups. 391 00:31:12,256 --> 00:31:23,676 I guess, what are the most common ones? And also, what are maybe not as common, but they are major roadblocks, hangups, that can really slow down that process? 392 00:31:23,676 --> 00:31:33,676 Yeah. So one of the key ones that we find where clients have gone out and done it themselves is just the wrong documentation or incorrectly executed documentation. 393 00:31:34,536 --> 00:31:39,976 So one of the key things for a software industry firm, which I did discuss that I would say earlier, is the trust deed. 394 00:31:39,976 --> 00:31:46,156 Firstly, having a good and compliant trustee is essential, but then also making sure it's correctly executed. 395 00:31:46,356 --> 00:31:48,876 So many people just assume, oh, it's just a piece of paper. 396 00:31:49,376 --> 00:31:50,016 It'll be right. 397 00:31:50,096 --> 00:31:51,136 I don't have to sign that page. 398 00:31:51,176 --> 00:31:52,096 I don't have to do this. 399 00:31:52,456 --> 00:31:53,816 I don't need to fill that bit out. 400 00:31:54,316 --> 00:31:55,576 It's a hefty document. 401 00:31:55,716 --> 00:31:56,776 It's a good chunk of paper. 402 00:31:57,936 --> 00:32:03,456 But without that, you effectively don't have an SMSF if it's not correctly signed and executed. 403 00:32:03,456 --> 00:32:09,056 So they'll do that and they'll get to, you know, opening the bank account. 404 00:32:09,196 --> 00:32:11,916 We'll want a copy of the trust deed and they send it off. 405 00:32:12,056 --> 00:32:14,056 Well, it's not executed properly. 406 00:32:14,156 --> 00:32:14,756 It's not this. 407 00:32:14,876 --> 00:32:16,596 You've got the wrong information here. 408 00:32:16,696 --> 00:32:33,436 So that causes a big roadblock, you know, and not to mention, you know, even if you get it to the point of opening a bank account and rolling funds over, when you get to the first order and you've got, you know, an incorrectly executed deed or you've got, you don't have an investment strategy. 409 00:32:33,456 --> 00:32:35,216 in place or you don't have. 410 00:32:36,196 --> 00:32:38,516 One of the most common documents, 411 00:32:38,796 --> 00:32:41,316 one of the most essential documents is like there's 412 00:32:41,316 --> 00:32:45,456 an ATO trustee declaration that all trustees have to sign 413 00:32:45,456 --> 00:32:50,096 and be aware of, you know, they'll get to the audit point 414 00:32:50,096 --> 00:32:54,396 and the auditor requests a copy of this and they don't have it. 415 00:32:54,836 --> 00:32:59,076 Yeah, that can be, you know, a pretty big, you know, concern. 416 00:32:59,076 --> 00:33:02,556 One of the other sort of big roadblocks that we come across 417 00:33:02,556 --> 00:33:09,756 in the establishment process is trustees or members that are involved in the fund that have 418 00:33:09,756 --> 00:33:16,256 outstanding tax issues with the ATO, whether that's personal or through a company, 419 00:33:16,556 --> 00:33:23,056 things like outstanding BASAs or outstanding tax debts or their personal tax returns overdue. 420 00:33:23,056 --> 00:33:27,856 These can hold it up, especially with the ATO process when we do the ABN applications. 421 00:33:27,856 --> 00:33:38,356 So we always discuss this with the clients before we go ahead with doing an SMSF establishment to make sure that their personal and business tax affairs are in order. 422 00:33:38,496 --> 00:33:41,096 Not because we're snoopy or anything like that. 423 00:33:41,176 --> 00:33:51,056 It's just that we know that, okay, well, if you've got four or five buses that are overdue, as soon as we do the ABN application, your TFN is going to be flagged and it'll go in. 424 00:33:51,056 --> 00:33:55,716 the ATL will put it through for review. 425 00:33:56,096 --> 00:33:58,416 And then, you know, nine times out of 10, 426 00:33:58,556 --> 00:34:02,416 they're going to hold it up to either you get those tax affairs in order 427 00:34:02,416 --> 00:34:05,496 or they'll just reject the ABN. 428 00:34:05,596 --> 00:34:07,676 So that's one of the things we like to, you know, 429 00:34:07,916 --> 00:34:12,116 definitely cover with potential clients and get those in order. 430 00:34:12,376 --> 00:34:14,696 But yeah, there's sort of the two main ones. 431 00:34:15,236 --> 00:34:17,476 Yeah, I'm sure there's more. 432 00:34:17,476 --> 00:34:18,676 I'm sure there is more. 433 00:34:18,676 --> 00:34:24,736 And for the audience, Simon was saying to me just before we were live, I'm like, good morning. 434 00:34:24,836 --> 00:34:25,216 How are you doing? 435 00:34:25,276 --> 00:34:25,856 He's like, good. 436 00:34:26,116 --> 00:34:27,056 It's 2 a.m. 437 00:34:27,416 --> 00:34:29,076 Here I'm like, mate, where are you? 438 00:34:29,116 --> 00:34:30,696 He's like, I'm in Dubai at the moment. 439 00:34:30,756 --> 00:34:31,676 I'm like, oh, my God. 440 00:34:31,876 --> 00:34:32,856 Do you want to reschedule? 441 00:34:32,936 --> 00:34:34,416 He's like, no, it's all good. 442 00:34:34,576 --> 00:34:38,036 So I guess that just speaks to how deep you are in the space. 443 00:34:38,276 --> 00:34:42,996 It's, well, it's 2.40 now and you're just riffing and it's just coming straight to you. 444 00:34:43,016 --> 00:34:46,636 And that's why it pays to talk to someone that understands what the hell they're doing 445 00:34:46,636 --> 00:34:49,416 when it comes to something that can be so complex. 446 00:34:49,856 --> 00:34:53,816 To flip gears totally, it's gone a little bit quiet recently, 447 00:34:54,076 --> 00:34:56,356 but something that I've been following quite closely 448 00:34:56,356 --> 00:35:00,016 is this proposal for an unrealised capital gains tax 449 00:35:00,016 --> 00:35:03,056 on superannuation balances over $3 million. 450 00:35:03,476 --> 00:35:05,356 Do you have any insights into that? 451 00:35:05,436 --> 00:35:07,536 Have you heard anything about it recently? 452 00:35:07,996 --> 00:35:11,136 And do you think it's likely to come in? 453 00:35:11,436 --> 00:35:12,956 Do I think it's likely to come in? 454 00:35:13,256 --> 00:35:15,496 From what I've been seeing and hearing, 455 00:35:15,496 --> 00:35:19,856 You know, I feel like the government is quite, you know, fixated on it happening. 456 00:35:20,056 --> 00:35:23,056 In what format it comes through, I really don't know. 457 00:35:23,296 --> 00:35:27,396 I've been on the, you know, I'm sort of keeping my finger roughly on the pulse around it, 458 00:35:27,456 --> 00:35:30,596 but I've not really been delving too much into what it's actually doing 459 00:35:30,596 --> 00:35:34,836 because until they actually release the legislation of what it is and how it's going to work, 460 00:35:35,036 --> 00:35:37,536 you know, it's anyone's guess really. 461 00:35:37,836 --> 00:35:41,676 You know, I've seen lots of, you know, content about it 462 00:35:41,676 --> 00:35:44,156 and different people within the industry sort of giving their opinions 463 00:35:44,156 --> 00:35:46,296 and thoughts on how it's going to work. 464 00:35:46,476 --> 00:35:48,416 And if it's this, it'll be this. 465 00:35:48,496 --> 00:35:49,416 If it's this, it'll be that. 466 00:35:49,656 --> 00:35:52,996 So, you know, I'm sort of just in the wait and see sort of field at the moment. 467 00:35:53,336 --> 00:35:58,396 Generally, what I've seen in the superannuation legislation field over the last, you know, 468 00:35:58,416 --> 00:36:02,356 since I've been involved in it is that, you know, when they want something to happen, 469 00:36:02,796 --> 00:36:04,536 it'll come through in some form. 470 00:36:04,536 --> 00:36:09,336 Usually when they push something through that's so drastic like this, 471 00:36:09,336 --> 00:36:25,756 They usually have some sort of transitional period where members of self-rated super funds or super in general can implement different strategies to not be completely burnt. 472 00:36:25,756 --> 00:36:38,176 So if we go back to the 2017, they had the option to recast your cost basis when they brought in the transfer balance caps and all of that related to pensions. 473 00:36:39,336 --> 00:36:43,096 Whether they'll do something similar here, I haven't really heard anything in that space, 474 00:36:43,136 --> 00:36:44,016 so I don't really know. 475 00:36:45,576 --> 00:36:53,836 From what I've seen with it, I think it will come through, but in what form, I don't know. 476 00:36:53,836 --> 00:36:59,356 How clients can deal with that, I think a lot of the voices I've been listening to 477 00:36:59,356 --> 00:37:05,616 within the super-generation industries is just don't freak out too early and do something drastic 478 00:37:05,616 --> 00:37:08,796 because it may not be necessary. 479 00:37:09,636 --> 00:37:10,436 Wait and see. 480 00:37:10,636 --> 00:37:15,816 And then once you've got clarity around what the rules will be, 481 00:37:15,896 --> 00:37:18,016 then you can sort of figure out how you're going to deal with it. 482 00:37:19,156 --> 00:37:22,216 I've heard lots of concerns around, 483 00:37:22,216 --> 00:37:25,876 especially clients that are in the crypto and Bitcoin space 484 00:37:25,876 --> 00:37:44,404 that are some years away from retirement that are already sitting on very high unrealized capital gains and people know people concerned about how they going to deal with that you know which you know is a concern because you know um if you in a position where you a long way off meeting a condition of release and 485 00:37:44,404 --> 00:37:49,384 you're already sitting on those gains unrealized gains that are going to trigger these these taxes 486 00:37:49,384 --> 00:37:52,944 then you know how are you going to deal with that you can't you don't have the option of 487 00:37:52,944 --> 00:37:58,604 drawing that money down to bring your balance down um and obviously you don't want to just 488 00:37:58,604 --> 00:38:03,124 burn yourself by selling off an asset that's performing really well if you're already sitting 489 00:38:03,124 --> 00:38:09,764 on a high unrealized gain so um so yeah i think we just have to wait to see and then you know deal 490 00:38:09,764 --> 00:38:15,344 with it unfortunately well fortunately more likely is that you know in australia we all have to deal 491 00:38:15,344 --> 00:38:21,244 with superannuation that's you know it's it's a compulsory part of you know our financial life so 492 00:38:21,244 --> 00:38:24,844 So you just have to look at how we can make it work, basically. 493 00:38:25,104 --> 00:38:30,564 I was playing around with ChatGPT last night, and I've got a couple of numbers here. 494 00:38:30,864 --> 00:38:35,044 So some estimates do put to self-fund retirement. 495 00:38:35,224 --> 00:38:38,624 It's about $3 million today if you were to retire today. 496 00:38:38,624 --> 00:38:43,024 But most people, when they get to the age of, say, 60 to 64, 497 00:38:43,024 --> 00:38:47,064 or saying people have $205,000 to $381,000 in super, 498 00:38:47,224 --> 00:38:48,564 $65,000 to $69,000, 499 00:38:48,824 --> 00:38:51,464 about $206,000 to $29,000, 500 00:38:51,644 --> 00:38:53,164 $70,000 to $74,000, 501 00:38:53,164 --> 00:38:55,284 $200,000 to sort of $500,000. 502 00:38:55,984 --> 00:39:00,364 That's incredibly low compared to that $3 million. 503 00:39:00,784 --> 00:39:05,364 Obviously, the self-funded might be okay, 504 00:39:05,584 --> 00:39:07,844 maybe top it up a little bit with the pension and stuff, 505 00:39:07,924 --> 00:39:09,544 but the traditional super funds, 506 00:39:09,764 --> 00:39:11,784 not really giving people those numbers 507 00:39:11,784 --> 00:39:17,084 where it's going to push them towards the $3 million where they can be completely self-funded 508 00:39:17,084 --> 00:39:21,084 or where they're subject to that unrealized capital gains tax. 509 00:39:21,244 --> 00:39:25,404 By going into a self-managed super fund and say somebody goes down the track of Bitcoin, 510 00:39:25,544 --> 00:39:30,424 like you're saying, I know a lot of people that have set up self-managed super funds over the years 511 00:39:30,424 --> 00:39:34,764 and gone like all into Bitcoin, for example, not financial advice, 512 00:39:34,924 --> 00:39:36,704 choose your own investments, ladies and gentlemen. 513 00:39:37,304 --> 00:39:40,764 But with the performance, those balances get very big very quickly. 514 00:39:40,764 --> 00:39:47,804 And if they were to bring it in, yeah, it's probably more likely are going to be subject to the unrealized capital gains over $3 million. 515 00:39:48,504 --> 00:39:50,904 My thoughts, and I'd like to get your thoughts, Simon. 516 00:39:51,324 --> 00:39:56,644 It's better to have big money problems where you need to deal with that. 517 00:39:57,064 --> 00:40:01,224 It's like that pressure is a privilege instead of not having enough money problems. 518 00:40:01,564 --> 00:40:02,984 You know, I think that's the worst problem. 519 00:40:02,984 --> 00:40:14,484 They're both a problem, but I think the big money problem is still a better problem to aim towards, to be able to choose, to be able to be like, no, they're bringing in a $3 million unrealized capital gain. 520 00:40:14,524 --> 00:40:15,884 I want to get there. 521 00:40:16,084 --> 00:40:18,304 I want to have that problem instead of I get to retirement. 522 00:40:18,424 --> 00:40:19,724 I don't have enough money. 523 00:40:19,844 --> 00:40:21,344 But what are your thoughts around it? 524 00:40:21,544 --> 00:40:21,804 Absolutely. 525 00:40:22,164 --> 00:40:26,384 I mean, having big money problems is better than no money problems. 526 00:40:26,584 --> 00:40:26,964 You know what I mean? 527 00:40:26,964 --> 00:40:50,264 I've always said, you know, when clients, you know, or people I know complain about big tax bills, you're paying big tax because you've got big money, right? So, you know, if you've got, if you're worrying, having to worry about the $3 million threshold and the unrealized gains tax, yeah, I mean, no one likes to give up money that they've worked hard for and, you know, invested well to achieve. 528 00:40:50,264 --> 00:41:05,504 But at the same time, you're looking at yourself as being in that portion of the population that has reached that target that has been deemed a minimum or close to a minimum to be able to have a comfortable retirement. 529 00:41:05,504 --> 00:41:16,364 But that being said, you've got the people who have got the option to contribute more for the people on those lower balances to help get them more. 530 00:41:16,484 --> 00:41:19,884 And then, say, investing into asset classes that can help achieve that. 531 00:41:19,884 --> 00:41:27,684 But yeah, I'd say if you're at that level, it's not the end of the world to have to pay a bit more tax. 532 00:41:28,024 --> 00:41:37,124 I mean, and when you really delve in, a lot of people have been asking me about this $3 million cap and the additional taxes and things. 533 00:41:37,324 --> 00:41:44,404 And when you really delve into and understand the superannuation regime in Australia since it was introduced back in the 90s, 534 00:41:44,404 --> 00:41:58,684 It does gel up in that the superannuation regime was put in place to help encourage individuals, the average Australian, to prepare and be prepared to self-fund their retirement. 535 00:41:58,684 --> 00:42:26,204 And how do they do that? By encouraging you to save a portion of your salary every year in addition to whatever else you can contribute and get a tax concession on that income. So if you're on the standard 47% or the highest tax rate, you've been given that ability to contribute funds into the superannuation pool and have a lower tax rate applied to that money. 536 00:42:26,204 --> 00:42:55,204 But as we've seen, sort of what the government has seen over the last sort of 20 years is that, you know, people that are on the higher end of the scale in terms of wealth, you know, are also able to utilize that, I guess, take advantage of it in terms of, you know, storing, you know, additional wealth within the superannuation environment at that lower tax rate, which is where they sort of come up with this $3 million level of, okay, well, if you've got more than $3 million in super, you don't generally need these additional tax concessions. 537 00:42:56,204 --> 00:42:58,484 to help save to fund your retirement. 538 00:42:58,824 --> 00:43:02,864 So, you know, I see it from both sides in that, you know, 539 00:43:02,984 --> 00:43:06,144 no one likes to pay taxes on money that they've worked hard to get. 540 00:43:06,244 --> 00:43:08,764 But at the same time, you know, if you were saving those, 541 00:43:08,904 --> 00:43:10,884 if you were making those gains outside of super, 542 00:43:11,004 --> 00:43:13,504 you would be paying that same tax anyway, if you don't know. 543 00:43:13,624 --> 00:43:18,184 So it's a good and a bad win for people that are in that position. 544 00:43:18,184 --> 00:43:21,664 But how they deal with it, you know, for people that are, you know, 545 00:43:21,724 --> 00:43:24,804 sort of in our sort of age bracket where we've still got, you know, 546 00:43:24,804 --> 00:43:30,804 a good chunk of years before we get to that point where we can utilize the super money and you're 547 00:43:30,804 --> 00:43:35,464 already at that level how are you going to you know deal with those unrealized gains and especially 548 00:43:35,464 --> 00:43:41,484 an asset class that like you know crypto or bitcoin that can you know fluctuate in price and value in 549 00:43:41,484 --> 00:43:45,744 the short term quite a bit you know how you know how's that going to work in terms of triggering 550 00:43:45,744 --> 00:43:51,904 these taxes you know at one point and then you know being at a low point you know soon afterwards 551 00:43:51,904 --> 00:43:52,724 and things like that. 552 00:43:52,984 --> 00:43:56,464 Obviously, no one's got a crystal ball 553 00:43:56,464 --> 00:43:58,264 to see the future about how it's all going to happen. 554 00:43:58,544 --> 00:44:01,484 But if history is anything to teach us, 555 00:44:01,584 --> 00:44:05,464 Bitcoin and any other asset class can be quite volatile. 556 00:44:05,924 --> 00:44:09,284 So yeah, how it's going to work in reality, we'll have to see. 557 00:44:09,444 --> 00:44:12,404 I think that's going to be very interesting. 558 00:44:12,784 --> 00:44:15,624 We could speculate on it all we like, 559 00:44:15,624 --> 00:44:19,144 but when they do whatever they do, we'll know more. 560 00:44:19,624 --> 00:44:19,844 Yeah. 561 00:44:20,164 --> 00:44:20,604 Dive into it. 562 00:44:20,604 --> 00:44:24,124 we're coming to the top of the hour but i think one thing that would be really 563 00:44:24,124 --> 00:44:29,764 important to be able to talk about is in a traditional superannuation account most of them 564 00:44:29,764 --> 00:44:34,824 if not all of them come with life insurance or like a lot of insurance is sort of built into them 565 00:44:34,824 --> 00:44:41,904 when you set up a self-managed super fund they don't like it's not baked into it it just it's 566 00:44:41,904 --> 00:44:46,784 something that you need to go out and choose for yourself and do that what are your thoughts and 567 00:44:46,784 --> 00:44:52,384 maybe like when you're talking to clients in regards to the insurance, what comes up in those 568 00:44:52,384 --> 00:44:57,204 conversations? Yeah, well, generally, the first step is, like you say, to just have that realization 569 00:44:57,204 --> 00:45:03,364 that it generally, it doesn't come with it, with that built in, you know, some clients may have 570 00:45:03,364 --> 00:45:08,944 already had, you know, additional or specific policies put in place, you know, through working 571 00:45:08,944 --> 00:45:12,764 with a financial advisor, or they've done it off their own back, you know, in their existing super, 572 00:45:12,764 --> 00:45:18,524 Some clients have just had the default cover that whatever their fund had and had never really thought of it. 573 00:45:18,724 --> 00:45:27,584 Life insurance or insurances in general within SMSF is actually one of the aspects of the investment strategy that the ATO has said that you do need to consider. 574 00:45:27,744 --> 00:45:31,624 So you do have to think about it and decide whether you need it or don't. 575 00:45:31,624 --> 00:45:54,304 Generally with us, we encourage our clients to speak with a financial advisor specifically for the insurance needs to sort of do a full dive into their personal situation, figure out what insurance cover they do need, and then helping them find the cover and a policy that suits them and help them implement it. 576 00:45:54,304 --> 00:46:01,124 Because if you're going to be paying the money for it, you may as well get the most suitable one you need. 577 00:46:01,124 --> 00:46:13,184 But yeah, it's one of the things that we do discuss with the clients that, you know, it's a necessity and you don't have to have the insurance, but you do have to have the consideration to it in terms of do I need it? 578 00:46:13,584 --> 00:46:14,044 Do I know? 579 00:46:14,244 --> 00:46:25,404 And yeah, so we always, if you haven't already, speak to an advisor about that because, you know, they're generally the best place in terms of helping you look at your situation and decide what level of cover you want. 580 00:46:25,404 --> 00:46:32,984 And then, you know, they've usually got the partnerships in place with the different providers to get you the best policies and then go through the actual process. 581 00:46:33,004 --> 00:46:37,104 Because, again, that's a whole new another process within the process to get those done. 582 00:46:37,324 --> 00:46:37,564 So, yeah. 583 00:46:37,944 --> 00:46:38,484 But, yeah. 584 00:46:38,784 --> 00:46:48,144 And then obviously with our service, we're able to work with the advisor in terms of providing the information and, yeah, integrating that within the rest of the setup within the fund. 585 00:46:48,144 --> 00:47:07,324 Awesome. I guess for everyone, if you're interested to be able to learn more, go to the link below and connect with Simon or somebody on Simon's team and just have a chat and ask the questions because for anything to be able to change, we need to change something. And to be able to make a rational decision, we need new information. 586 00:47:07,324 --> 00:47:13,204 but Simon I just want to hand the microphone over to you and give you a couple of minutes or a moment 587 00:47:13,204 --> 00:47:18,844 if you've got anything that I didn't ask or that you'd like to bring up or just a thought in general 588 00:47:18,844 --> 00:47:25,744 I mainly just that I'm a big believer in the self-managed super tool in the financial planning 589 00:47:25,744 --> 00:47:31,104 in the in the financial aspect of Australians lives superannuation you know we're quite lucky 590 00:47:31,104 --> 00:47:36,844 in Australia that we do have the superannuation regime so it's there and you know a lot of 591 00:47:36,844 --> 00:47:43,924 A lot of people tend to think of their super, a lot of people actually don't think about their super until it's almost too late to start thinking about it. 592 00:47:43,924 --> 00:47:51,604 So what I like with the self-managed super is that it does engage you in your financial future. 593 00:47:51,904 --> 00:47:56,284 It gives you the choice and control to take control of your own financial future. 594 00:47:56,284 --> 00:48:23,484 You know, in my own personal opinion around, you know, the landscape in Australia and the world over the last few years is that, you know, with the introduction and growing popularity of things like Bitcoin and the crypto world, you know, people are wanting to take control of their own financial world and not be gatekept by the banks and industry funds and things like that, you know. 595 00:48:23,484 --> 00:48:26,544 And while they do serve a purpose, I'm not poo-pooing them. 596 00:48:26,704 --> 00:48:31,004 They've got their rules and they're there to protect the clients. 597 00:48:31,124 --> 00:48:38,104 But at the same time, I like to see people take control of their own financial wealth. 598 00:48:38,824 --> 00:48:44,084 I've dealt with thousands of clients in the time that I've been working in self-managed super. 599 00:48:44,084 --> 00:48:50,184 And a lot of them hadn't really thought about their financial future and their superannuation until it was almost too late. 600 00:48:50,184 --> 00:48:54,424 They're getting into their 50s and 60s and then they start to think about it. 601 00:48:54,424 --> 00:49:16,184 So what I'm seeing now with our services around the crypto space and Bitcoin is that we're getting a lot younger crowd than usual that are taking an interest in it and wanting to be engaged in that aspect of their financial savings and how they're going to plan out the rest of their lives. 602 00:49:16,184 --> 00:49:20,284 So, yeah, so I'm a great fan of self-managed super funds. 603 00:49:20,624 --> 00:49:22,384 You know, they're not for everyone. 604 00:49:22,744 --> 00:49:24,884 Definitely, I won't say that everyone should have one, 605 00:49:25,024 --> 00:49:29,484 but, you know, they're a great tool that if you want to take that control 606 00:49:29,484 --> 00:49:31,784 and ownership to exercise. 607 00:49:32,324 --> 00:49:36,804 So, yeah, we're always happy to talk to people around their thoughts 608 00:49:36,804 --> 00:49:42,964 or direct them to partners that can help them in having a think about it 609 00:49:42,964 --> 00:49:46,084 and even just having a chat and just generating that thought process 610 00:49:46,084 --> 00:49:47,784 to see whether there's something different 611 00:49:47,784 --> 00:49:49,444 or something better that they can be doing. 612 00:49:49,984 --> 00:49:50,064 Yeah. 613 00:49:50,224 --> 00:49:51,524 I really appreciate it. 614 00:49:51,884 --> 00:49:53,784 For everyone, if you want to connect with Simon 615 00:49:53,784 --> 00:49:56,424 or somebody from UD Self-Managed Super Fun, 616 00:49:56,764 --> 00:49:58,144 connect with them, links below. 617 00:49:58,444 --> 00:50:01,024 But please remember, do something nice to yourself today 618 00:50:01,024 --> 00:50:02,304 for somebody else out there. 619 00:50:02,584 --> 00:50:03,704 Be blessed. Peace.