SMSFs (Self-managed super funds)

Set out below are all SuperGuide articles explaining SMSFs (Self-managed super funds).

Doubling your wealth is a super compound: Rule of 72

The level of investment return you can expect on your super account, or other type of investment, has been a hot topic recently. Volatile share markets and record low interest rates have prompted super funds and fund managers to temper the expectations of investors in relation to long-term returns … [Read more...]

SMSF compliance: Is a corporate trustee required to pay lump sums?

Q: I’ve seen conflicting advice that if you wish to make a lump sum payment from an account-based pension by way of an in-specie transfer of assets, or, just a lump sum cash withdrawal, you can’t do it if you have individual trustees. You must have a corporate trustee. Can you please comment?I … [Read more...]

Government’s green light on SMSF borrowing, with conditions

On 20 October 2015, the Liberal government confirmed that SMSF borrowing, through the use of limited recourse borrowing arrangements, continues to remain a legitimate financing option for SMSFs. Note that in April 2016 however, the ATO released guidelines flagging the expected demise of LRBAs … [Read more...]

SMSF investment: Borrowing to invest can be the means, not the end

As a property and share investor for nearly 30 years, I believe the use of borrowing can be a legitimate means to purchase assets, but gearing is not an investment in itself: it is simply a means to invest with associated costs and extra risk.Over the years, I have spoken to thousands of … [Read more...]

SMSF borrowing: Investing in property (what’s OK and NOT OK)

If you run a self-managed superannuation fund, you can invest in all types of real property, including residential property, commercial property, industrial property and even a farm (under certain circumstances).Before September 2007, the capacity to use borrowed money to purchase an SMSF asset, … [Read more...]

SMSF borrowing: Fix related party LRBAs by 30 June 2016, or risk 47% tax

Note: This article deals specifically with SMSF limited recourse borrowing arrangements (LRBAs) financed by related parties, rather than financial organisations. If you’re seeking general information on SMSF borrowing and LRBAs, see SuperGuide articles SMSF investment: Borrowing to invest is a … [Read more...]

Revisited: Is property a good investment for your SMSF?

In the past few months, we have received a higher-than-normal number of emails seeking information about investing in property via an SMSF. In response to this upturn in interest, I have revisited the question, is property a good investment for your SMSF?Previously, I have written that I have … [Read more...]

SMSF borrowing: Is a limited recourse borrowing arrangement the same as a non-recourse loan?

Q: Can you differentiate between a limited recourse borrowing arrangement and a non-recourse loan. Are they the same thing?The precise meaning of different terms will depend on the definitions contained in the contract that the loan provider requires a borrower to sign.Generally speaking … [Read more...]

SMSF investment: Where can I find information about SMSF borrowing?

Q: I’ve just finished reading DIY Super For Dummies and found it really helpful. What interested me was the borrowing options for SMSFs. We already own a property in our fund and we are looking at using borrowings for financing our next fund purchase. In your book you mention a joint venture to … [Read more...]