A lot is being made out of the SMSF’s risk of borrowing. Funnily, and it cannot be a coincidence, that most of the vitriolic attack is launched by the big funds which have suffered immeasurably due to the growth of the SMSF industry. Now, the only avenue left to them is to malign SMSF. So, they talk about SMSF’s borrowing risk, lack of prudential regulations, and tax evasion, among other things. Let’s go through some of the illogical claims made by the SMSF attackers.
Tag: managing A Super Fund Archives
What are your long-term investment goals? What is your risk profile? Answer these questions loudly to yourself because these would determine what mix of assets will see you performing through the roof in terms of your SMSF fund.
What if your SMSF shares a bank account with various ‘related’ unit trusts? ATO guideline ‘ID 2014/7’ clearly marks out the course of action in such an event and talks about the regulations pertaining to keeping your SMSF money and assets segregated.
The SMSF industry is not governed by prudential regulations, but the strict eye of the ATO more than compensates for it. So if you are an SMSF trustee and you feel you have erred somewhere and the ATO may attend to it anytime soon, it is wise to get your folly corrected.
When we talk about DIY super funds, our minds do not run over the small APRA funds (SAF) in general. By and large, the term ‘DIY’ in Super funds connote self-managed Super funds. The beauty of SMSF is that it allows you great flexibility in terms of your investment and gives you a very high degree of control over where you want to invest and just how much you want to invest. This is something that industry Super funds have missed all through.
Thousands of articles across the internet are devoted towards answering the question, “Is SMSF for you?” I won’t shy away from agreeing that I have myself spent a bit of energy talking about the subject over this website. So, let me just try reaching out to you on this matter with a different perspective.