Self Managed Super Fund Advice

[DannyG]

Are any members managing their own super funds?

And specifically have you purchased an investment property with your funds? If so I am looking for lurks and perks of doing so and some real world advice.

Thanks in advance for any help in this area.  Im not a fan of professional financial advisers...well I am, but Im not a fan of paying them  so I am trying to get my head around all this as best as I can.

[corndog]

Seen on the TV some channel was airing a segment on how more people are going into shares as against property. I know bugger all about the share market except it can make you money but it can loose you money.  I leave that to super fund. I looked at going self managed around 10 years ago but through my accountant and an advisor. Did involve a change to self managed super and buying an investment unit. Property did look ok but im not keen on units. The price of setup for self manage and plus the yearly charges from the 2, think they wanted around $4000 each per year turned me off them. Plus the fact that their contact with me was so poor, couldn't even pick up the phone when there was no response from email. I ended up pumping the maximum I could into super, worked out ok for me. Have 2 investment properties, 1 has done very good, the other not as much. Depends on where you buy and if things go the way it is expected to, but things could change in time. Self manage funds aren't a set and forget thing. Your expected to manage it, not blow your money. Spoke to 2 old workmate lately,  both self manage, 1 into shares, 1 into a property, both say its going well.  I'm not sure about things with a self managed investment goes as I didn't use super as the finance, so can't  tell you much on that but it might not follow the same as rules being through a super fund. Has your super fund got advisors they use. Could be a free advise for members. Best ask them first point of call is my advice.

[Rodt]

Danny my wife and I have gone down this path and have a SMSF. There are accounting requirements in setting up the initial trust accounts, tax returns and ongoing yearly audit regardless of if you go through a financial planner or not

We were looking at property early last year but then put a hold on it when COVID came along. Not much different using the super to buy an investment property

There are people on the forum who are financial people so will be able to give you specific details but if you wanted to send me a PM with any specific questions I would be happy to give you the benefit of our experiences

Rod

[GBC]

You can’t get some free advice from an industry super fund or somewhere else? Advice is a tax deduction. I’ve had family go into SMSF’s and are now stuck with commercial property in areas where mining used to be huge……. Get advice mate.

[McTavish]

A couple of things to think about and the main clue being in the name - SELF MANAGED super fund.

I'll pose a list of questions for you...  If you are comfortable with these issues then it may be something you'd find worthwhile pursuing.

- Do you have the time and expertise to manage the investment strategy?
- Are you happy to pay your accountant to audit the books and administration?
- Do you have an understanding that you will be the trustee of the trust managing the assets, or the director of a company atf the trust?
- If not, are you're willing to learn about the corporate responsibilities of these structures and manage the assets under the trust? 
- Do you have a good understanding of the golden rule or the principle of diversification? 
- Do you have sufficient money invested across all different types of markets so spread your risk or are you putting all your eggs on the one property, one location, one market?
- If you're close to retiring and you need to start drawing down an income from the SMSF does it hold sufficient cash to pay you the minimum yearly income percentage - because you can't sell the bathroom to fund your next years income if you're heavily into property?
- Have you investigated which lenders are still interested in lending to SMSF if you need to fund the purchase with gearing, as most banks have pulled out of that market.

Not trying to be a wet blanket - but if you're thinking 'yeah, happy with this' then do your research and make your decision.

All sorts of help out there through ASIC, MoneySmart & the ATO site.

https://asic.gov.au/about-asic/news-centre/find-a-media-release/2019-releases/19-277mr-asic-urges-consumers-to-question-whether-smsfs-are-right-for-them/

https://moneysmart.gov.au/property-investment/smsfs-and-property

And last point - no I'm not giving or going to give you advice - that goes to a whole new level than some anonymous banter on a camping forum

McT

[D4D]

A couple of things to think about and the main clue being in the name - SELF MANAGED super fund.

x2 - I dropped some cash into shares to see what it was all about and frankly I CBF managing them. There are people who are way smarter than me in this stuff with lots of computer algorithms to work out how to maximise returns so I'll buy into their ETF or the like.

[Bird]

You can’t get some free advice from an industry super fund or somewhere else? Advice is a tax deduction. I’ve had family go into SMSF’s and are now stuck with commercial property in areas where mining used to be huge……. Get advice mate.

best advice in the thread...