SMSF Investment StrategiesSharing Simple Strategies for Self Managed Super Funds
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First time visitor
Hi, thanks for visiting our website. Based on our analysis of our website traffic, you may be someone who is thinking of starting your own self-managed super fund, or someone who already has a SMSF and is looking for some help in preparing an investment strategy or you may be looking for some investment ideas for your SMSF. We have compiled a list of blog posts based on what you may be interested in.
We also update this blog frequently with information that would be of interest to SMSF Trustees and other Stock Investors. If you like to stay updated with the latest posts, you can subscribe by Email or by RSS feed.
1) General information on starting/managing a Self Managed Super Fund (SMSF)
- Start a SMSF for the right reasons
- Compare apples with apples
- Elephants can’t dance, play pool or juggle eggs
- Help with SMSF Compliance and Administration
2) How to prepare your SMSF Investment Strategy and sample investment strategy
3) Investment strategies, investment ideas, risk and fund management
- Income strategies
- Hedging strategies
- Bear market strategies
- Alternative investments
- Think like a professional fund manager
4) Investment education
- Learn Options on a budget
- My favourite information sources Part 1-5
- Technical analysis
- Our training videos – Options education for stock investors
Hello Christina & Kingsley,
We are first time users to your blog site – great concept – and would like to float the following for discussion:
My wife and I are looking to buy a business and were wondering if we could use our superannuation (via our SMSF) to ‘invest’ into a business to offset the purchase price?
We are under 60 and there are no bricks and mortar involved in the business purchase. We are unsure of the practice and the area seems somewhat grey.
The business broker, selling the business says ‘yes’ we are able to get around regulations by purchasing ‘shares’ within the company (business we’re looking at is set up as a standard PTY LTD), however I’m a little unsure.
Could you be good enough to comment and tell me if in your opinion this is (a) legal and (2) viable?
I guess in short we need to know, is there a sensible way to move forward with our purchase and invest a portion of our Super to buy a business?
Many thanks in advance.
Scott Carlyle
Hi Scott,
What the biz broker has said sounds dodgy and I would think the answer is no if the business is just going to be a family business. It would fail the sole purpose test as you and your wife will enjoy a benefit from this investment before you retire. The only legally allowed participation is for SMSF to buy the premises for the business (Business Real Property) but you said there is no bricks and mortar involved. I have bought shares in unlisted companies using SMSF funds before but the company was owned by someone else and we were minority shareholders.
I am afraid I don’t know of any legal way to use super funds to buy a business. We are also starting a business and would love to be able to use our super funds to fund the business start up costs or pay off our home mortgage. To me, both my business and my home will benefit me in my retirement so it should be allowed but unfortunately the ATO does not agree! In Malaysia and Singapore, we are allowed to withdraw funds from our super to buy a home but that would be a compliance violation in Australia.
Hello again Tina,
Many thanks for your reply.
Under the scenario mentioned, ‘I have bought shares in unlisted companies using SMSF funds before but the company was owned by someone else and we were minority shareholders’
Could I ask, did you invest more than 5% of your total SMSF and what term did you leave the investment invested?
Grateful for the advice.
Regards
Scott
Hi Scott,
I cannot remember exactly but if could have been more than 5% and the terms for the investment is no different than buying listed shares i.e. any dividends or capital gains would be go into the super fund. My accountant’s advice was that there is no restrictions on listed vs unlisted investments. The main requirement is that the transaction is done at arms length i.e. it is not with a related party. If you plan to proceed with using super fund to buy any business, I would recommend you check with your accountant first.
Christina