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SMSF life span

Discussion in 'Superannuation, SMSF & Personal Insurance' started by knpp19s, 14th May, 2018.

  1. knpp19s

    knpp19s New Member

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    I will become eligible for the centerlink pension at the end of this 2018 year.

    I want to start a SMSF for myself as the sole Member, to invest in precious metals bullion and nothing else, ie 100% of the SMSF funds will be invested in precious metals bullion.

    Member retirement benefits will come from the anticipated rise the gold and silver price.

    Some questions:

    Is it possible to invest SMSF investments into precious metals alone?

    Am I required to have, at least, some diversification in my investments and if so will diversification within precious metals fulfill such a requirement as far as the regulator goes?

    If I start this fund can I keep it going beyond getting the centerlink pension?

    Thanks
     
    twisted strategies likes this.
  2. Hodor

    Hodor Well-Known Member

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    Check out this link
    What can my SMSF invest in?

    The ATO site might be helpful also
    Thinking about self-managed super

    Probably something you should pay someone for some specific advice. A one hour session should be able to answer your questions.

    Can I ask why you decided on a precious metal strategy? Are you planning to physically hold (in a bank safe etc) the bullion or a fund that holds it?
     
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  3. knpp19s

    knpp19s New Member

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    Im aware that I can invest in precious metals but the key question for me is can I invest 100% of the funds into precious metals alone or do I have to invest in other types of invesments also in order to comply with a possible requirement to 'diversify." Is diversification a requirement under super law?

    The precious metals strategy is to buy through, hold and store at the Perth Mint.

    It seems I am getting to the point where a info session might have to be the way to go. What could I expect to pay for a one hour consultation?

    thanks
     
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  4. AnthonyKing

    AnthonyKing Active Member

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    Hello KNPP and All
    But 100% in metals growth strategy?
    Maybe not because it is a selection guessing process IE a "Guess the Market" strategy AND you bear all the risk not the FPs.
    Also remember the FPs work for themselves and for their licensee Not for You.
    IE all Care but No Responsibility

    The SIS Act and SIS Regs allow the trustees to decide their investments subject to the SMSF Trust Deed and the fund investment strategy - Which can be varied at any time.

    Now for some common sense - 100% into a metals growth strategy?
    It may work out very well over time but SMSF bills are paid with cash flow so it may be smart to put a % of fund assets - which you decide into Income investments which YOU - select because bills must be paid ON TIME in a SMSF else you are in debt and in breach of Trustee responsibilities.
    Regards to All
    AnthonyK
     
  5. knpp19s

    knpp19s New Member

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    Yes; 100% into metals growth stratrgy as I am confident that will occur because of the state of the international fiancialy system and geopolitical issues but when I am not certain. The gold price has been artifciially suppressed for some years now to suit the too big to fail banks. Thats I would like to know if I can keep my SMSF going after i get my centerlink pension at the end of the 2018 year.

    Yes its risky but its the about the best hedge against inflation there is. This investment would also protect the purchasing power of my funds in my industry super fund against inflation which we are begining to see now.

    "SMSF bills are paid with cash flow so it may be smart to put a % of fund assets - which you decide into Income investments which YOU - select because bills must be paid ON TIME in a SMSF else you are in debt and in breach of Trustee responsibilities."

    Could I hold back a certain amount of the SMSF funds in a reserve account for the purpose of paying the bills? Could I add in or use funds from my own private bank account to top up the SMSF holding account?
    thanks
     
  6. Terryw

    Terryw Well-Known Member

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    Consider trust law too - although you are unlikely to sue your self in this instance there could be ramifications for a deceased estate.
     
  7. knpp19s

    knpp19s New Member

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    Thanks Terryw, I will be the sole director and as I see it, my POT will kick in and the attorney will step in and wind up the fund as per the wind up requriement in the Deed will be implemented.

    Please advise if I have overlooked anything here.
     
  8. Terryw

    Terryw Well-Known Member

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    What is a POT?

    Power of Attorney? An attorney could only act if it is an enduring attorney and you lose capacity. They would need to appoint themselves director - which would potentially expose them to litigation from your executor or beneficiaires of your will.

    if you die the attorney can no longer act on your behalf. It would be the LPR of your estate.

    I can't advise you if you have overlooked anything as there would be much you have overlooked.