The Financial System Inquiry (FSI) has come up with its Interim Report and it categorically states the increasing penchant of SMSF holders towards borrowing. The Sole Purpose Test unequivocally suggests that the main idea behind SMSFs is to bolster retirement fund. Any other use must be limited and kept at the periphery and hence the concern.
Super News
Which Should You Prioritise Between Mortgage and Super?
It is only wise to keep a tab on your debt and pay it off as quickly as you possibly can. However, there is a new school of thought that suggests that debt payment must not jeopardise extra contributions to the Superannuation fund. While research clearly asserts the Australian inclination for mortgage payment (above Super), there is a consensus that such move may compromise those days when people are retired or out of work, especially when they do not have investments or savings to fall upon.
Is It Wise to Use SMSF to Run a Business?
There is no dearth of Small and Medium Enterprise (SME) owners who want to run their business from the proceeds of their SMSF. Some of them have made a valiant bid, too, but the idea is mired in impracticality. There is no denying this! If you are a fund trustee, here are a few questions you must ask yourself prior to using your SMSF to run a business.
Why You Should Buy Insurance Using Super Fund
It is just so important to know all there is to know about the investment options of your Super fund. Of course, equally important is to understand what contributions you should ideally make to them to ease out investments and seek a decent retirement nest egg. There is a consensus that people also seek information on the right degree of insurance they should buy within their Super fund.
What to Consider when Choosing Super Fund
Not all the Super funds can be star performers, and those which can be may fail to do so consistently. Take the case of IOOF Portfolio Service. It gave a 13.8% return in the year 2013, whereas it fared miserably in 2012 giving only -1.3%. So where does this leave us? How should we go about choosing Super fund then? There is no dearth of funds which have trailed lower than inflation and for a good period of time at that.
What Does It Take to Manage My Own Superannuation Fund?
Are you thinking about setting up your own Superannuation fund? To update you with the statistic here, you are not alone. The run of SMSF has been nothing short of incredible, and it has gathered 1 million members in a very short time. Over the last 4 years, the industry has shown 26% growth and has a whopping $560 billion in assets. So when you say you want to set up a SMSF for yourself, you are not talking balderdash for sure.
