Q: I am currently 59, semi-retired, and am the sole director of the Corporate Trustee of my SMSF with a balance of around $850,000 in shares and cash. I have been receiving a reversionary pension since my husband died. I am finding the paperwork required to maintain my SMSF is a little overwhelming. I have been told when I turn 60 next year (August) I could cancel the reversionary pension, rollover a lump sum from the SMSF to an Industry Super Fund, then draw an allocated pension until my preservation age of 67, and wind-up my SMSF. Subject to no rule changes between now and then, do you see a flaw with this plan?
A: Before I make any comments on this particular query, I’ve got to say, Janelle, I think you’re best off getting specific personal advice on this particular issue. The question you’re asking here has a lot of personal information that could affect the outcomes. So, the comments that I will make now are pretty much general in nature. What I want to do is go through a summary of the key issues I feel that you need to cover off, and probably by seeking some advice if you think it’s necessary. So please, what I suppose I’m saying is I can’t give you specific advice, but I can take you through what I believe are the key issues.
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