SMSF 100k startup too risky?

[geoffw]

Euro I know the facts. It used to be my job. However why do you need to have a planner
Self managed super fund...

At least some banks are asking for a financial planner to sign off before they will lend money to an SMSF.

 

[Terry_w]

Euro I know the facts. It used to be my job. However why do you need to have a planner
Self managed super fund...

You don't need one, but if the trustee of the SMSF will be borrowing to buy property then a fin planner would be forced upon you by the lenders...

 

[sydprop]

SMSF at $100k is a little too low given the accountancy and compliance fees ($2-3k) although may be ok if you are very hands on. This amount is possibly okay for shares but too small an amount for property IMO.

I'm thinking that eSuperfund @700/yr is flexible enough and they do property. What else do you get for the 2-3k?

 

[KPDN]

Lot of talk - SMSF Facts

There are several options, points 1 & 6 below should give you some options around the fund size, so here is a check list to help and I hope more people will add to the list in time...

1) An SMSF is a Trust - you can have upto 4 members who need to be Trustees, chose wisely as each of them needs to be capable of being Trustees.
2) Corporate Trustee is the way to go for several good reasons
3) Please use a Financial Planner who has SMSF specialization, understands Limited Recource Borrowing and Property Investment if you are planning to head down this route.
4) I am still to find an accountant who can legally provide the advice required to for such a long term investment.
5) To keep the fund compliant, the Investment Strategy must meet the requirements f the SIS Act.
6) You can make additional contributions and some lenders will take this into account.
7) We use CPx - that now offers a single click national search for Independently Researched (not by the vendor / agent) property tailored to suit the investors requirements.
8) Get one entity to manage everything rather than have several people trying to pull you in their own direction..... we offer such a service if you are interested...

 

[KPDN]

"I'm thinking that eSuperfund @700/yr is flexible enough and they do property. What else do you get for the 2-3k?"

I have always believed in one principle - you pay peanuts and you get monkeys! You certainly don't want them messing with your SMSF.

"It is unwise to pay too much but it is worse to pay too little
When you pay too much you lose a little money and that?s all
But when you pay too little sometimes you lose everything
Because the thing you bought is not capable of
doing the thing you needed it to do.." Tom Panos

 

[geoffw]

"I'm thinking that eSuperfund @700/yr is flexible enough and they do property. What else do you get for the 2-3k?"

I have always believed in one principle - you pay peanuts and you get monkeys! You certainly don't want them messing with your SMSF.

"It is unwise to pay too much but it is worse to pay too little
When you pay too much you lose a little money and that?s all
But when you pay too little sometimes you lose everything
Because the thing you bought is not capable of
doing the thing you needed it to do.." Tom Panos

But then you don't want to be paying for caviar and still getting peanuts.

Because super funds are such a rapidly growing industry, a lot of people are earning a lot of money from it.

The question is a good one, and I'd be interested in the answer. What else do you get for the $2-$3K?

And regardless, if your super fund is earning very little, you could still do a lot better managing it yourself, even with average to high expenses.

 

[Terry_w]

1) An SMSF is a Trust - you can have upto 4 members who need to be Trustees, chose wisely as each of them needs to be capable of being Trustees.

Up to 4 members who need to be trustees or directors of the trustee company.

 

[sydprop]

KPDN,

I'm trying to understand - Are you asserting that eSuperfund are Monkeys?

"I'm thinking that eSuperfund @700/yr is flexible enough and they do property. What else do you get for the 2-3k?"

I have always believed in one principle - you pay peanuts and you get monkeys! You certainly don't want them messing with your SMSF.

 

[roe]

KPDN,

I'm trying to understand - Are you asserting that eSuperfund are Monkeys?

If you want endless email back and for, there is no phone you can call, there is no one you can talk to, if you stuff up paperwork or they stuffed up paperwork...good luck .. A reasonable accountant and auditor shouldn't cost more than $1500 for a simple SMSF return ..

mine cost $1300 but I do all the work for him,
everything is well documented get chuck into a program where it will spit out the correct figure and line up everything at the end of the year....he just double check...send off to auditor and I pay my super tax.

the pain I found with SMSF if you make too much money ATO want their fair share faster you pay PAYG every three months like business

 

[roe]

But then you don't want to be paying for caviar and still getting peanuts.

Because super funds are such a rapidly growing industry, a lot of people are earning a lot of money from it.

The question is a good one, and I'd be interested in the answer. What else do you get for the $2-$3K?

And regardless, if your super fund is earning very little, you could still do a lot better managing it yourself, even with average to high expenses.

Lot of paper work SMSF, everything has to has record and match up, auditor wont sign off other wise.

banks statements, invoice, dividend, shares all this has to have hard evident so auditor can match up with the transaction else they wont sign it off...

you said you bought 40K worth of shares, it not good enough just to record it you got to have a contract to show to the auditor and that goes for everything else that involve cash in and out of SMSF account..

 

[ScottyB]

Interesting views on Esuperfund.

I am a current client and wanted to clear up a few myths about their service.

• You can speak to someone very easily once set up.
  
• Email response is excellent - I am on my second annual audit/return with them and the process is swift and queries are answered within 24 Hours
  
• The process of uploading documents etc and using the online dashboard is painless and makes life easy

Setup is simple. You create a Pty using Clear Docs for a minimum fee, this is the structure for your SMSF, you sign the clearly marked document pack and return it to Esuperfund and job done.

If you can't follow the simple set up instructions you should probably not be trusted with thousands of dollars worth of your own money

There are some things to be made aware of!

• ESuper will restrict you to specific lenders and Product Providers (This is how they make their money)
  
• e.g. Mortgages at 80% LTV through St George for Residential Property and 70% LTV for Commercial
  
• Share dealing will be through a specific provider (From memory I think you have 2 choices)

Audit time is really easy, as they have access to the transaction information from your "linked" accounts all the data gathering and transaction info is done for you, all you do is go through line by line and double check it has been assigned to the right category.

You have a choice, pay minimum yearly costs with what I can only call a simple streamlined process or pay your Accountant several thousand to do it for you (Except they won't you will have to compile all the info to send to them)??????

Your investment options and deeds are wide enough to allow good exposure/diversification and worst case scenario you set up with ESuper and if you come across a partner you want to invest your funds with that they don't support you keep the fund with them and supply the transactions yearly at audit time which gives a small amount of extra work, or you move the SMSF elsewhere.

Regards

ScottyB

 

[Future Assist]

You need to take into consideration a million other factors other than just your super balance and the property price. Your age? age to retirement? your income? Salary sacrificing ability? the property rental yield?

make sure you get your advice that encompasses your whole positions/situation.

_____________________________
Jimmy
Future Assist - SMSF Investment Specialists | Melbourne | Brisbane | Sydney | Gold Coast
P: 1300 118 618