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Needing advice with SMSF please

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Mirabella, 8th Sep, 2011.

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  1. Mirabella

    Mirabella New Member

    Joined:
    7th Sep, 2011
    Posts:
    2
    Location:
    Melbourne, Vic
    Hello,

    I am new to this forum and I have been reading the threads relating to SMSF. I would need to receive some advice or thoughts regarding what my husband and I want to do with our Super.

    We have 2 Superfunds, my husband with AMP and myself with VicSuper. We would like to roll over both our funds into a SMSF. As we are close to our 60s, I do not think it is worth it for us to invest in a property, as the loan may take years to repay, even with rents etc, and we might want to access our money in less than 10 years or so.
    We are thinking rather about a Cash Fund with a Bank or another institution, but I haven't looked into this yet. We have a total of $300k only.

    My questions are: is it a good idea to have that money in Cash only, what are the pitfalls in SMSF if we do.

    Any thoughts would be appreciated
     
  2. Superman

    Superman Well-Known Member

    Joined:
    6th Nov, 2007
    Posts:
    343
    Location:
    Gold Coast, QLD
    Hi Mirabella

    Looks like you need specific financial advice - something forum users are likely unwilling to provide (liability issues, not knowing the full story etc).

    $300k is enough for a SMSF, but if you just want cash, you don't need actually need a SMSF - AMP and VicSuper likely enable you to adjust your investment strategy / selection if that is the only reason for a SMSF.

    I would talk to a financial planner who can give you direction. If you would like a referral to someone in Melbourne, please let me know.

    Thanks
    SM
     
  3. jorgon

    jorgon Active Member

    Joined:
    28th May, 2011
    Posts:
    25
    Location:
    Brisbane
    Hi Mirabella

    I agree that it is difficult to say whether an SMSF would be right for you but depending on your personal circumstances certainly "transition to retirement" is something one or both of you should consider.
    See my article Australian Super - how it works for some explanation of the things that can be done.
    For example once you start your income stream the fund will not pay tax on its income and capital gains from assets which are used to provide for that income stream.
    Whether you have your super money in cash depends on how you see the market going in the future. I can't think of any pitfalls within the SMSF arising from this option. Instead there is an advantage because the annual fees for accounting work and for the audit are likely to be less.
     
  4. Mirabella

    Mirabella New Member

    Joined:
    7th Sep, 2011
    Posts:
    2
    Location:
    Melbourne, Vic
    Thank you both for your replies. I am aware it is difficult to give advice over a forum.
    We do have Income Stream coming in through my husband's Super with him sacrificing about $25k p.a.

    Superman, maybe it would be good as you say to see a financial adviser, although we think they do tend to put forward their products, or those in which they have some interests.
     
  5. Andrew Newman

    Andrew Newman Well-Known Member

    Joined:
    5th Nov, 2008
    Posts:
    175
    Location:
    Melbourne
    Hi Mirabella

    I agree there are financial advisers who may not have your best interests.

    If you decide to see a financial adviser, it's important they charge flat dollar fees and no commissions - this way you are paying for advice and not for a product.

    I would be happy to have a chat about your options which will depend on your current financial situation and long term goals.

    Cheers