More of us are becoming portfolio managers, of at least our own portfolios. But in the professional arena, managing other people’s money requires special skills, with qualifications and ongoing training.
Tag Archives | smsf
It’s fashionable to have an SMSF, and at barbecue talk, it goes well with the new car, private school, investment property and overseas holiday. But who should really have one?
The accounting profession has been sold a pup by the ASIC licensing rules which allow accountants to advise on SMSFs. It’s a different business model requiring full financial risk and due diligence analysis.
Australia needs capital for infrastructure, and SMSF trustees want direct access to assets with yield and long-term security. It’s a win-win if governments can find a structure to bring the two together.
Are there investment opportunities out there that only small funds can capitalise on? Being small has some advantages over larger funds which can be used to stand out in an overcrowded industry.
This submission to the FSI shows the effect of gearing on returns, the ways agents target SMSFs and the modest income returns from residential property. And on cue, the latest spruiking leaflet arrived in the mail.
A withdrawal and re-contribution strategy involves accessing your super and re-contributing some or all of it back into your SMSF as a non-concessional contribution (i.e. all tax-free).
ATO video on SMSF Annual Obligations.
ATO video on SMSF Sole Purpose Test.
Using a limited recourse loan to buy property within a SMSF sounds great but the restrictions on such arrangements will work against you when it comes to improving or developing the land.
* Roy Morgan Research says almost 7% of investors in retail super funds are ‘very likely’ to switch to another fund in the next year. Here’s the chart featuring all major super providers.
Contribution splitting allows a super member to split up to 85% of concessional contributions received in a financial year with their spouse, and there are times when this is a good strategy.
Qualifying as a ‘wholesale’ investor opens many investment opportunities not available to most retail investors, but the interpretation of the rules is inconsistent across the industry.
My extended family has well in excess of four people in it and we currently have four separate SMSF’s which quadruples the costs and time involved in managing the funds. Why is there a limit on the number of fund members?
It’s not surprising that research shows high levels of satisfaction for self managed portfolios, as investors are effectively rating themselves. Regardless of the reason, few SMSFs will return to an institutional fund.
The Reserve Bank has three early warning signals for financial instability in a sector: rapid growth; a target for spruikers; and a potential investor protection issue. SMSFs tick every box.