SMSF borrowing costs

Invite your over 65yo parents into your SMSF and voila Oh sorry, misread, that brings forward the drawdown - but it does allow you to take money out.
For my SMSF I purchased 3 x NRAS allocations and am putting them on my own development product. It's likely I'll add some more onto my own product as I can (second hand NRAS allocations)

 

Just interested in your comment about inviting older rellies into your smsf. Presumably that means they have to roll their super in as well?

 

hi @ellejay, no they don't have to. You are allowed as many super funds as you like so if they want to join without rolling into it they can but when it reaches pension phase for them it does have to pay them a pension.

* get good advice about this I'm not a lawyer, SMSF specialist or accountant
** get your older rellies to also be happy with the risk and what they are signing in for
*** they will be part owners of any assets even if they have no funds

 

Thanks. Definitely food for thought. I'll check it out.

 

I had a client who gifted money to his mum and she made a contribution into super. She kept it segregated from 'her' money in the fund and it was invested for a number of years in a low tax environment (in CBA shares I think). earnings became tax free in the fund and grew a lot. The funds are now out of the super fund and back into the adult child's hands.

Harder to do these days.

 

Moral of the story. NRAS is potent as a multiplier if employed intelligently - outside or inside super