Greetings
My wife and I have over $20,000 on super. I thought why not invest it onto something that will deliver a much better return than where it is now, ie jv partnership for wraps. Is this enough $$$ to start a SMSF. Someone told me that unless we have $100,000 setting up a SMSF is not worth the trouble. I need some expert advice.
Brilliant
Brilliant
There are a couple of other discussions on this topice, they might help. Picja suggests the costs per year etc.
I was told that if you could make more return on your funds than it costs in admin fees, then do it. We set one up with only $30,000. We cannot buy property as you cannot borrow using the super fund (well, you can, but the banks aren’t always happy to do what you need). At the moment we’re looking at investing in 2nd mortgage type funds returning between 20-30%. That will definitely cover the costs of running the fund.
Also, if you plan on putting more money in yourself to increase that value it’s still viable. But remember, you can’t access it until 55/60 or retirement – whichever is later.
Cheers
Mel20-30% sounds nice but you really have to remember that the higher the return the higher the risk. If it was that safe every one would stop starting businesses and in vest in 2nd mortgages.
You have to remember that most people with smsf now are doing better because most people are a bit more conservative, with generally more cash assets than growth like shares. REmember that most of the poor performances are due to shares and they will come back one day.
Josh
Hi Josh
I know what you are saying. However, you would not believe the amount of due diligence we have done on this deal. I think we’ll hit about $10K in solicitor fees by the time we are done. There is a group of about 7 of us, who are looking at investing a total of $500K +. In this instance, I would suggest that there is very little risk indeed.
Cheers
Mel
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