statement of advice

A Statement of Advice (SOA) is a document prepared specifically for you by a licenced financial planner or advisor. It includes, among other things, the facts about you and your financial situation, the scope of the advice, recommendations and any fees you may pay either directly or indirectly. Here we are going to look at Statements of Advice tailored specifically for SMSF’s.

As mentioned a Statement of Advice (SOA) specifically addresses your situation. It may cover a very broad, complex strategy or a very precise strategy. But most importantly it is designed for you. Here are some examples of when you may obtain a statement of advice with regard to SMSF’s:

  • When you are considering setting up an SMSF 
  • When you are considering commencing a pension from your SMSF
  • When you would like to make additional contributions to super
  • When you contemplate a property purchase in your SMSF with a borrowing arrangement
  • Looking to use a “re-contribution strategy”
  • Winding up your SMSF
  • Rolling other super into or out of your SMSF
  • A combination of several of the above

So why is a Statement of Advice so important?

Everyone is different. Everyone’s circumstances are unique. Offering a piece of advice to one person could not be given to the next without potential consequences. You wouldn’t have an architect give you the same plans as her previous client without first getting to know what it is you are trying to achieve.

A Statement of Advice (SOA) looks at your individual facts and goals, compares fees, returns and savings, looks at all possible outcomes and areas of concern and then offers recommendations. On top of all of this it then considers alternate strategies that you may not have thought of and goes over the implementation costs.

All of this is so important as it is imperative to have all the facts before making big financial decisions. Particularly when dealing with SMSF’s as once something has been done it can be very difficult (or costly) to undo.

If you are looking for an advisor to assist you with achieving your goals, implementing a strategy or help with a decision contact us here.

This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.