Are you a baby boomer? Then perhaps you might benefit from this string of expert SMSF advice for people on the brim of retiring.
As the last of the baby boomers have turned 50, experts believe that a substantial part of that demographic are still uncertain about their financial future. That said, many SMSF experts and financial gurus still subscribe to the idea that they still have that window to secure their finances and live off their retirement years in financial bliss and peace.
Self-managed Super funds (SMSFs) continue to grow as the fastest, most popular investment vehicle for people who want to make the most out of their retirement savings and prepare for their financial future. With the growing popularity of the SMSF instrument, the demand for SMSF experts has exponentially soared through the roof.
Are you an SMSF trustee who is looking to acquire buy/sell insurance policy through your SMSF instrument? You better think twice before you do.
SMSF trustees may see a spike in their fund’s tax rate from 15 per cent to 49 per cent if they purchase buy/sell insurance policies through their SMSF. Many investors enter into such arrangement because it provides them with tax deductions. However, such benefit is easily outweighed by the huge risks involved.
Retirees and baby boomers with investments in self-managed Super funds (SMSF) who have the potential to outlive their retirement savings may find themselves in a financial quagmire if their SMSF advisers do not immediately address the situation.
In an article for the website SMSF Adviser, Miranda Brownlee explains how the ATO has pepped up its scrutiny of the SMSF sector and is contemplating stern action on non-complying trustees.
There is popular consensus that 5% returns can be expected from the Superannuation funds. Of course, there will be years like 2014 when there will be bullish returns close to 17%. But to offset the generous bargain, there will be GFC-hit years like 2008 which will show -13% returns. So overall it is safe to assume a figure of 5%.
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