Introduction
How to Best Use “The Guru’s Guide to SMSFs”
“Self-Managed Super Funds, SMSFs for short, have transformed so many Australian families financially and also provided the rock for the Australian share market in troubled times. With more than 700,000 Funds holding on average $1.2M, it is a great success story. With little or no tax, flexible investment choices from property to gold, shares and start-ups, those who have broken away from industry and retail super funds to start a SMSF, don’t look back.” – Grant Abbott
1. Introduction
Let’s face it, most of us here in Australia have superannuation somewhere. At last count, there were 14.8 million Australians with superannuation accounts amounting to more than $2.3 trillion. For many innocent employees, unaware of their power to change, it is probably tucked away in two or three superannuation accounts. In fact, I am so, so surprised when I do presentations, and I have done more than 1,500 on superannuation and Self-Managed Super Funds (SMSFs) over the years, that couples in their 20’s and 30’s, and embarrassingly in their 40’s, do not know where all their super is or how much they have. But with a little investigation they find, particularly those in the mid-30’s up that they have $100,000+ in their superannuation and when combined with their spouse this tidies up into a nice little amount of capital. Yet, like the GST, it is hidden and most people don’t take responsibility for it – even though it is a forced direct deduction from their salary and wages. And the banks, fund managers and industry funds love ripping the fees from the accounts of members that don’t take that responsibility. As they say – “use it or lose it”.
So at talks, to inspire a little passion in super ownership, I play the following game and you might want to play along with me.
And if you already have a SMSF then still play the game to see how you would go with some freewheeling monopoly ideas - but don’t use the figures shown in the game - use the total amount sitting in your own SMSF for all members which may include your spouse. As Trustee of your Fund and investment controller, you have complete control of where to invest – so let’s see how you go.
2. The Super Monopoly Game
Game O