Does your smsf do better than other funds ?

[bornfree]

Already have a smsf set up, got nothing in it yet. But thinking even industry funds charge at least 1 %, so for $1m they cost $10K, $2m $20K etc. If your retirement income is $50K pa that is a big chunk. For those have your own smsf, are you happy running it, does your smsf do better than if the money is invested by other people, and what do you invest in ? I am thinking if I do it myself most of the money will be in ETF, index etc, couple of properties, then a few blue chips such as woolworth (I shop at their supermarket and fill up my tank at their petrol stations, it can't go wrong

 

[agent007]

Already have a smsf set up, got nothing in it yet. But thinking even industry funds charge at least 1 %, so for $1m they cost $10K, $2m $20K etc. If your retirement income is $50K pa that is a big chunk. For those have your own smsf, are you happy running it, does your smsf do better than if the money is invested by other people, and what do you invest in ? I am thinking if I do it myself most of the money will be in ETF, index etc, couple of properties, then a few blue chips such as woolworth (I shop at their supermarket and fill up my tank at their petrol stations, it can't go wrong

Ours did. We started less than a year ago and have an IP and cash so far. Now can count the $ going in. They are not disappearing any more

 

[Ridin-High]

Hey thread starter,

How much is it to start your own super fund and whats the approx on going costs of maintaining it?

When i first started working i use to salary sacrifice to super (It was around 300 per pay), but i stopped that and started using the money to build my out of super portfolio (im only 23 so it will be ages before i can get my super). Actually haven't checked my super balance in ages, something for me to do

But i think you are doing better then the majority of people who do nothing.
I purchase some woolworths shares

We use to do majority of shopping @ woolies but do it @ Aldi's now

 

[csc2]

i have never commenced a suoer fund other than to invest my own money in r.e...

its all a big scam super if you ask me...way too many sharks in a feeding frenzy....

when i retire and need money ill just flick one investment at a time, be it shares or r.e....

guess super is for employees really as its compulsory but you still have many options on where your money can be invested...

art is one but i think that may change sooner or later, too many people bleeding the system with using art unfortunately....its a goodie though to increase wealth if you buy the right pieces..

good luck

 

[Gretsch]

Hey thread starter,
How much is it to start your own super fund and whats the approx on going costs of maintaining it?

From memory, $1K or $10K I can't remember. Ongoing costs (in our case) is the accountant's management and auditing fees, not much really. For a SMSF to be viable you must have a bit of money to start with.

The beauty about it is you're in charge of your investment and rule what you do with your investment. There are certain things you can't do, my portfolio is cash and rental properties.

Another advantage is your profit is taxed at 15% NOT 30%. Once you're retired, you can take out as much as you like and pay no tax...sell your properties and pay no CGT.

 

[bornfree]

How much is it to start your own super fund and whats the approx on going costs of maintaining it?

Mine was $400 to set up and $800 for yearly audit & tax return.

 

[bornfree]

There are certain things you can't do, my portfolio is cash and rental properties.

Not sure how many years you are from retirement, and the net equity in the properties, but I think it will be hard to just live on rent alone (assume resi properties) due to the low yields & unexpected maintenance.

 

[Gretsch]

Not sure how many years you are from retirement, and the net equity in the properties, but I think it will be hard to just live on rent alone (assume resi properties) due to the low yields & unexpected maintenance.

I'm about to retire within months. I own one commercial and one unit outright valued at $800k, unit netts $450 wk in rent, I'm currently running my business out of the commercial and my business pays my super fund $2,500 pm rent, fully tax deductible for my business not to mention the co-contributions the business can put into the find per year.

I recently bought a 50 acre property for $620k in NSW to retire to, it will be fully paid once I sell my business, then I'll put up my PPOR for rent, will fetch $650 wk gross rent and also my commercial.

Tossing up what to do with the rest of the money, maybe I'll play safe and let it earn 6-7% interest in a bank, I'm a bit frightened of shares.Total income would be around $2k weekly, I figure I could live on this ?

 

[bornfree]

Total income would be around $2k weekly, I figure I could live on this ?

I probably can live 2 weeks on that. I like this strategy, simple and reliable, while some "gurus" pushing for complicated structure such as more borrowing on equity etc etc, very complicated and with so much uncertainty (with the demise of NO/LOCs).

 

[Ridin-High]

I'm about to retire within months. I own one commercial and one unit outright valued at $800k, unit netts $450 wk in rent, I'm currently running my business out of the commercial and my business pays my super fund $2,500 pm rent, fully tax deductible for my business not to mention the co-contributions the business can put into the find per year.

I recently bought a 50 acre property for $620k in NSW to retire to, it will be fully paid once I sell my business, then I'll put up my PPOR for rent, will fetch $650 wk gross rent and also my commercial.

Tossing up what to do with the rest of the money, maybe I'll play safe and let it earn 6-7% interest in a bank, I'm a bit frightened of shares.Total income would be around $2k weekly, I figure I could live on this ?

Well done sounds like you've done really well

 

[monty python]

this site has some useful info - I recall reading that it would only be worthwhile to run a SMSF if your super is over $250k.

http://www.fido.gov.au/fido/fido.nsf/byHeadline/Switching to DIY super

 

[Ridin-High]

i havent checked my super but its like 10-20k lol awhile to go yet