Self funded superannuation

T

tic-a-dee-boo

I need some advice on trying to move my current superannuation plan to one that is self funded and controled by myself and or my trust.

The problem that i have is:

As i have currently been working for a company and have been paying into my company's supperannuation plan for about 17 years, with myself and the company making contributions.

Is it possible to start my own self funded super plan and have all of mine and the companys contributions transfered to my own self funded plan ? If this is possible can someone advise on how i would go about doing this.

Would it then be possible for my self funded plan to buy property?

Thank you
Best regards, good health and wealth.

Tic-a-dee-boo
 
DIY super fund can buy property but it can't borrow money. Therefore you'll
need big bucks in your fund to get anywhere.

You'll need to spend a couple of thousand each year to meet the reporting
requirements. Another reason that there has to be a fair stash of money
to make it economical.

andy
 
Hi Andy,

Thanks,

My problemis that i dont believe that there will be much left in my super buy the time that i am due to retire 2016, when all the other baby boomers.

Tic-a-dee-boo
 
17 years of employer and employee contributions is going to be good enough. But if you are in a defined benefit scheme STAY THERE. A lot of schemes in the early-to-mid 1980's were defined benefit.

If you are in a normal retail type super fund then you can roll-over your account into a Self Managed Super Fund. Providing you are not actively trading the stock market or doing aggressive property investments, the audit fees will not be onerous. Nowhere near the few thousand per year. A friend's fund pays $500 for accounting and audit plus whatever the ATO annual fee is ($50 or $500 - can't remember).

Super funds pay 15% tax on contributions and 15% on earnings.
 
Hi Paul,

thanks,

I am not in a define denefit scheme.

Can the company i work for stop me from rolling over my super account into a Self Managed Super Fund ?
 
G'day,

Lot of questions and many more answers!

You will need some in depth advice before you venture further.

DIY Super has become a big issue within our client base, so we are addressing this by forming an inhouse DIY Super Department in the New Year to help clients.

Should be economically viable at almost all levels. (Usual philosophy, NO fees, unless we can value add)

Paul Zag is spot on though, and that is that you will need some professional advice.

Steve
 
Hi steve,
Thank you,

I do agree i will need some depth advice before i venture further, the mainpoint the troubles me is.

Can the company i work for stop me from rolling over my super account into a self managed fund ?

On another note, i have put my name down for your next course in Melb ( Feb 2003 )

Best regards, good health and wealth,

Tic-a-dee-boo
 
Hi Tic-a-dee-boo,


Your current company might/might not have the facility that allows you to roll over into another fund.

Generally it is not that they want to restrict you, just that when most of these funds were set up, they didn't cater for this kind of flexibility.

There has been a huge amount of debate about legislative change that will allow individual members to elect a fund of thier own choice. Especially now with most of the funds going horribly backwards.

Ask your present company what the rules of your fund are:
RE: choice of fund.

Regards,

Steve
 
Mine doesn't restrict me from rolling over into my SMSF. They happily sent me a form.

All I have to do is fill out all details- including a set of four numbers, the only one of which I can find is the ABN.
 
From memory you can only buy commercial property using SMSF that includes residential used to run a business :(

The grey bit is if you are in the share trading or property investment business and run a home office could you sell your PPR to your SMSF and rent it back at fair market rates? Freeing up capital that you can invest elsewhere. The idea being that on retirement the property is handed back over.

You wouls have to pay stamp duty and some legals and need enough cash to in your super to do it. Some of the million plus commercial properties here are now marketed as park your super here and forget about till you retire.

Would also pay to check breakout costs of getting your super with my AMP super 2/3 would be lost as initial units that have no value to cash out till retirement age is reached. ( I missed that in the fine print )-: )
 
Originally posted by tic-a-dee-boo
Can the company i work for stop me from rolling over my super account into a self managed fund ?
Click to expand...

They can't stop a rollover, that provision is in the Act. However there can be exit fees to make it not worth doing.

The employer can decline to contribute to your fund. Accounting and audit is a major pain if they are not set up for multiple funds.

So talk to an advisor, your fund, your employer. Oh and I came across this interesting link DIY Super Pack

Regards

Paul Zag
Dreamspinner
 
Bundy

I think you will find that the restriction that you are referring to , is only relevant if your SMSF is buying the property off you as an individual . Your Super fund can't buy your PPOR or any other residential property , but it can buy your place of business if it has enough money. Make sure it does that at a commercial rate with valuations to back up the valuation.

My Super fund didn't have enough to buy my business premesis outright , but it did have enough to buy a share of it , and we had enough to own the residual bit without having a mortgage on it.

The SMSF is not allowed to borrow to buy , but also , if another party owns a share of the property , that party is also not allowed to have a mortgage over any part of the property.

see change
 
Originally posted by see_change
Bundy

I think you will find that the restriction that you are referring to , is only relevant if your SMSF is buying the property off you as an individual . Your Super fund can't buy your PPOR or any other residential property , but it can buy your place of business if it has enough money. Make sure it does that at a commercial rate with valuations to back up the valuation.

My Super fund didn't have enough to buy my business premesis outright , but it did have enough to buy a share of it , and we had enough to own the residual bit without having a mortgage on it.

The SMSF is not allowed to borrow to buy , but also , if another party owns a share of the property , that party is also not allowed to have a mortgage over any part of the property.

see change
Click to expand...

Hi see change,

Who decides how much your supper fund should pay for your office (house), I mean if I bought the house for $100,000 what prevents me from selling it to my supper fund for $20,000 (that could simply mean that the supper fund got a bargain)? and then as was suggested earlier renting it out to myself? And stamp duty wouldn’t be that great then…
Thanks.

Jerry
 
See_Change,
Your Super fund can't buy your PPOR or any other residential property
Click to expand...
I had a double take on this. I thought it meant that the SMSF could not buy any residential property- but do you mean that the SMSF can't buy any residential property from you? I thought that it could buy residential property, it just couldn't use any borrowed money to do so.
 
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