What can you do with 130k in your SMSF?

As mentioned. I have a piddling 130 k in my self-managed super fund. There are a number of things I would like to do with it but it seems that I am $100k to $150k short quite frequently.

I am now in the process of considering putting my super back into a managed super fund. Literally about to press the button depending what an advisor informs me next week - (@ $250 per hour I should hope his advice is on the money.)

On some bad advice I just purchased a property with my own money and a deposit as I was informed I could not inject the extra contribution of the amount I needed into my super to do what I wanted to do.

I purchased a property - 5 acres.
On it is -
Two houses.
Two bores
Two sceptic
Two driveways
Two electrical meter.
Fully tenanted.

Ready to be split.

I've just been informed I can't subdivide and sell one half to my super to rent to my business (and some tenants) for the next 30 years.

So I'm pretty much at the point of forgetting SMSF.

Before I do such a thing is there any reason other than purchasing property that my super fund could benefit me at this time or do I need to wait until I have $200,000+ (at age 65) in my super fund?

Thanks muchly for any advise.

 

have you met a condition of release?

 

What are the number of things that you are wanting to do with your SMSF? How far from retirement or age 65 are you?

With advice - never trust any single person and always double check things specially for big money decisions.

 

Hi Terry, I'm not quite sure what that is. Or If I have one. I will need to check. What will it affect? Getting out of the SMSF with fees and charges ?

If there is another reason to stay in the SMSF with investment or the like then happy to look into it.

Thanks for your response

 

Thanks for your response. I'm 37. Owner operator of a small business. I'm downsizing so I can put a bigger chunk away into retirement and what have you.

I wanted to do the above mentioned. Or buy something that I can lease elsewhere or to my company. Then sell later.

I think with the purchase I just made I've missed the boat on that. I could still do it but the I would get massacred tax wise.

 

Not an expert but I believe commercial property can be acquired from a member. You need good structuring advice. @Terry_w is a wizard with these sort of things. Have a consultation with him before you do anything else.

Personally, I think owning commercial property in SMSF that your business can lease will work out well in the long term. Talk to a private town planner in the area to confirm any advice against subdivision that you received, you never know what loopholes exists that can you get your deal across the line.

 

You can't touch your super until you have met a condition of release such as attaining the age of 60.
Perhaps you are asking what can the SMSF trustee do with its money? Is the property owned by your SMSF trustee? If so what do you mean by "...sell one half to my super to rent to my business..."

 

I have to ask - Why would anyone have setup a SMSF in this scenario ? It indicates all the reasons why advice should be obtained before acting. Its actually quite common and then the trustee uses a cheap administration service who will never give honest advice that the fund is too small....They rely on small funds.

Frankly I dont even understand the investment position with the property.

 

Hi there

Sorry that your experience sounds so uncertain, SMSFs are supposed to be fun, and unfortunately it does not. Setting up a SMSF with a "smallish" balance will generally require a contribution strategy.

Can I ask, did you advisor issue you with a statement of advice on establishment of the fund? or was it "execution only", if an SOA was issues you compare "now" to what was in the SOA and measure the difference, and why there has been a change. I'm not sure why you can't contribute unless you do not have the financial capacity to do so.

Cheers Ivan

 

You cannot benefit from your fund prior to meeting a condition of release as pointed out by @Terry_w.

If you are downsizing, are you able to bring forward your contributions to make a hefty lump sum payment into the fund? Specific advice is required to get the fund back on track or wind it up and go back to a retail or not for profit fund.