If you’re like many Australians and planning to secure your future by setting up a Self Managed Super Fund you need to know the 9 top things investors do wrong in their SMSF.
Its been shown that the majority of Australian baby boomers don’t have enough superannuation for a comfortable retirement and more and more are looking at taking control of their financial future and setting up SMSF.
A key challenge for these over 50s is that the broad- based compulsory superannuation system only started in 1992.
This means that those approaching retirement have not had the benefit of accumulating superannuation savings to the same extent as younger employees, who will have more years in the labour force under the system by the time they retire.
So if you’re planning to set up an SMSF or you already have one – this video from Westpac will explain 9 mistakes to avoid:
The traps to avoid:
- Acquisition of assets from related entities
- Not investing at arm’s length
- Failing the “sole purpose” test.
- Lack of loan agreement
- Operation standards contravention
- Unclear separation of assets
- Administrative type contraventions
- Owning to much of “in house assets” (18% of contraventions)
- Loans to members (the biggest cause of breeches)
This week we will publish a series of blogs and videos to help you better understand buying an investment property in a Self Managed Super Fund.
View Part 1 – BUYING PROPERTY IN A SELF MANAGED SUPER FUND – BASICS
The next installment will be published tomorrow.
A word of warning:
While setting up your own SMSF has benefits for many, it doesn’t suit everybody, so before you go down the route of setting up your own SMSF, it is critical to seek independent advice from a properly qualified financial planner to ensure that it is appropriate for your circumstances and that you set up things correctly and don’t fall foul of the tax man.
ONE MORE THING…
If you’re interested in securing your financial future through property investment, now may be a good time to buy property either outside or inside your super fund.
And if you’re looking for independent advice, no one can help you quite like the independent property investment strategists at Metropole. Remember the multi award winning team of property investment strategists at Metropole have no properties to sell, so their advice is unbiased.
Whether you are a beginner or a seasoned property investor, we would love to help you formulate an investment strategy or do a review of your existing portfolio, and help you take your property investment to the next level. Please click here to organise a time for a chat. Or call us on 1300 20 30 30.
When you attend our offices you will receive a free copy of my latest 2 x DVD program Building Wealth through Property Investment in the new Economy valued at $49.
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