SMSF or Family Trust - which investment vehicle?

Discussion in 'Superannuation, SMSF & Personal Insurance' started by rajiv__, 10th Sep, 2008.

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  1. rajiv__

    rajiv__ Member

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    1st Jul, 2015
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    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
     
    rajiv__, 10th Sep, 2008
    #1
  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    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).
     
    Simon Hampel, 10th Sep, 2008
    #2
  3. AsxBroker

    AsxBroker Well-Known Member

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    Hi Rajiv,


    Have you been to an accountant?

    Cheers,

    Dan
     
    AsxBroker, 10th Sep, 2008
    #3