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SMSF or Family Trust - which investment vehicle?

Discussion in 'General Investing Discussion' started by rajiv, 10th Sep, 2008.

  1. rajiv

    rajiv Member

    Joined:
    16th May, 2008
    Posts:
    16
    Location:
    Perth, WA
    Hi,

    I am considering setting up a family trust and/or SMSF to invest in property shares, etc. I am just wondering if Family trust is better or SMSF is better or is there a middle ground based on 'horses for courses'? Thanks.

    Cheers,

    Rajiv
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    It depends on what the purpose of the investment is?

    A SMSF is more tax effective in most situations - BUT you can't access the money until you retire. You have to consider an SMSF only in the context of a long term retirement strategy, NOT as a short/medium term savings/investing strategy.

    A family trust is useful for asset protection and for income streaming for tax planning purposes - especially if you expect to show a profit from the investments (eg a decent income or realised capital gain component, and not just growth-only).
     
  3. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Hi Rajiv,


    Have you been to an accountant?

    Cheers,

    Dan