Hi all. My MB is encouraging us to think about diy Super. We currently have a duplex for sale. I think he is saying we should transfer/sell the property into a diy super and all profit either from the sale, or rent if we keep it, will not be taxed. Our next project/purchase would also be bought by the super fund.
Next he suggests we transfer hubby’s AMP super approx. $160,000 into diy plus a $50,000 share portfolio. What then are we investing hubby’s super into?? maybe a managed fund to save managing our own portfolio?? OH dear the thought of being totally responsible for the success of our financial future is daunting and I am aware that if not managed well we could be worse off. Hmmm a big step I think. What do others do?N. Brown
I forgot to mention the duplex is owned by our family trust. How can a family trust work together with diy super?
N. Brown
Is your mortgage broker licenced to give super advice?
Maybe you should speak to a super specialist as things are complex in this area and once your money is in super it is locked away.
Terryw
Discover Home Loans
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Terry, probably not which is why he wants to have a three way conversation with an accountant about the situation. Do you know if these ideas may have some merit? You mentioned super specialist. Not in the yellow pages so where do you find them?
N. Brown
It depends what you and your husbands investment goals are and how active and involved you wish to be.
If it causes you this much worry and/or anxiety, maybe it would be better for you to leave your husbands super where it is.
My wife and I are currently looking into a self managed super annuation. From what we have heard and seen so far is that if you really want it to grow you will have to be very active in your supers’ investments.
Also note, that your SMSF will need to be audited annually so be aware, prepared and very organised.
I certainly recommend speaking with a professional advisor before you make a decision. As you are you in Toowoomba, maybe someone here can recommend an advisor for you.
MT.
Edit: Re: Richards post on second page of this thread.
Hi again RP Brown
I responded to one of your other queries regarding an accountant in Toowoomba. Could I suggest you talk with Elliot & Co – they have a financial planner on staff as well as the accounting staff.
They prepare our annual financial statements and audit our self managed superannuation fund and also assist us with the family trust.
Before you move anything from other superannuation funds you need to find out what the exit fees are and consider what your investment plan is for the future. Also particularly consider what insurance may be associated with your current scheme as it may not be available to you in a self managed scheme. Also please consider that a self managed fund can’t borrow funds (except in short term circumstances with strict rules to comply with) – so by moving your property into that area – you may be limiting your access to equity.
Originally posted by rpbrown:Terry, probably not which is why he wants to have a three way conversation with an accountant about the situation. Do you know if these ideas may have some merit? You mentioned super specialist. Not in the yellow pages so where do you find them?
N. Brown
Its alright to get a general idea from the broker, but don’t rely on it. I think you will find some accountant’s or financial planners specialise in super. Maybe some of the members here could recommend someone?
Terryw
Discover Home Loans
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Send an email to get my newsletter.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi again Terry and RP Brown
you may like to follow the link below
to review the information that is available from Superannuation Australia Pty Ltd. Members gain access to a DIY Fund Manual and can also speak to professionals who are involved in the superannuation industry. (You can access helpline calls)
I note that we receive a downloadable manual each quarter and regular newsletters which advise of recent changes in superannuation from this organisation.
There appears to have been a few responses to this question already but unfortunately a few inaccuracies:
1) As Terry as pointed out your MB may not be licenced to provide you with advice on SMSF unless he is a licenced financial planner.
Remember most Accountants are not Licenced to give advice in this field and can offer limited information.
2) A SMSF can only borrow in certain circumstances and for no more than 90 days maximum.
3) A SMSF is required to undertake an Audit each year but this will not be by the ATO. An independant Auditor undertakes the Annual audit and would only refer the matter to the ATO where there was a clear breach of the Superanation Rules.
4) Your Family Trust cannot sell a residential property to your SMSF (You definately need specialist advice and from somene other than your MB). The Trust can sell the property pay the relevant CGT and then you personally can make a deductible contribution.
There are several key reasons why people may decide to establish a SMSF. These include:
1) Control of your investments.
2) Tax savings
3) Cost SavingsSome of the key disadvantages include:
1) Cost
2) Obligations of the Trustees
3) Administration and compliance tasks
4) Fund perfomanceIt is not for everyone but done properly a SMSF can clearly outperform a standard superanuation fund.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
Thanks for all posts. Certainly a lot to think about there. I will definitely need to talk face to face with someone
Raddles Were with Elliots once but found them expensive and slow. What is your experience like?
N. Brown
HI again R P Brown
so far we have been happy with Jason Elliot and his team – we had also moved on from another firm in town who charged twice the amount these guys did. I must admit we got him to quote before we gave him our work – and he kept to the quote. We also know the strata title manager quite well – so perhaps the networking helped.As for being slow – given the amount that Accountants have to keep up with nowadays with the regular BAS, IAS, tax returns etc – I actually thought they were quite reasonable. We gave them our files in August and we were signing documents in September.
The other Accountants we moved from had our work for months before they did anything and left it to the last moment – which created a lot of stress. We had almost immediate responses to emails we sent and were definately filing documents well within the prescribed time limits.
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