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SMSF and best use of funds if under 40yo

Discussion in 'Superannuation, SMSF & Personal Insurance' started by dom81d, 16th Jan, 2020.

  1. dom81d

    dom81d New Member

    Joined:
    16th Jan, 2020
    Posts:
    1
    Location:
    Sydney
    Hi,
    Novice here, so I'll do my best to articulate what info I'm after.
    I have a bank account in our SMSF name with surplus funds. We transferred our entire Hostplus super and created an SMSF to purchase a commercial property for our own business. We now have around 70k remaining in the account.
    Can we transfer that back to hostplus or is it better to buy some EFTs/shares from this bank account?
    Because we are under 65, can we access the dividends or do we have to wait till retirement?
    We are aiming to retire in 5 years so having the ability to access the passive income would be ideal but not essential.

    Hope that makes sense.

    Thanks for your time,
    Dom
     
    twisted strategies likes this.
  2. twisted strategies

    twisted strategies Well-Known Member

    Joined:
    3rd Nov, 2013
    Posts:
    1,323
    Location:
    QLD
    welcome to InvestChat ,

    i am NOT any sort of financial professional

    but this is a concept you might like to consider

    Dividend Reinvestment Plan—DRIP Definition
    (we call it DRP in Australia )

    Dividend Reinvestment Plan (DRIP)

    now some companies have extra options like 50% shares 50% cash it isn't always an 'all or nothing choice ( and each choice has flaws and benefits )

    i like ETFs but i don't LOVE ETFs , they may not be you best choice i like LICs a tiny bit better ( but hold both ) each has their strengths and flaws , but prefer holding direct shares over funds managed by others

    before sidelining your super fund entirely what extras are you paying for in your super fund ( do you say get real income protection insurance , etc. etc ) that might be worth the phone call . ( and might be worth keeping )

    now personally i had the opportunity to liquidate my super ( and took it ) and now do NOT have a formal super fund at all but an investment portfolio ( which i can micro-manage as much as i like )

    however a formal super fund might be better for you ( i just could see ever-changing rules on the horizon in 2010 , and thought stuff it i will fly by the seat of my pants )

    cheers !!