SMSF strategy changes justified post-Budget

federal-budget/self-managed-super-funds/investors/superannuation-contributions/financial-adviser/SMSFs/government/director/

28 May 2012
| By Staff |
image
image
expand image

With one month to go until the end of this financial year, investors would do well to review their superannuation strategies and maximise their super savings before new laws announced in this year's Federal Budget kick in, according to Hewison Private Wealth.

Chris Morcom, director and adviser at Hewison Private Wealth, said that the Government's election Budget was not surprising but was a disappointing outcome for higher income earners, who will face increases to contributions tax and restrictions on superannuation contributions.

"June represents a golden opportunity for higher income earners to turbo charge their retirement savings before a suite of new superannuation laws come into play," he said.

"But investors will need to plan accordingly."

Morcom suggested three specific super strategies for investors to consider pre-June 30 - but for self-managed super funds (SMSFs), the most important is the transfer of in-specie assets.

"Time is running out to take advantage of in-specie asset transfers, a popular strategy for reducing exposure-to-market risk, with the end-date for in-specie contributions 30 June 2012," he said.

"Investors should take advantage of weaker investment markets by transferring personally-owned listed assets, or business real estate property, to their super fund, as a contribution that can be made 'off-market'."

Morcom said that if someone was a high-income earner, it made sense to transfer their assets into their super fund in order to shield themselves and their assets from market risk.

"It can be a very tax-efficient way to build a retirement base," he said. 

Hewison Private Wealth emphasised that in-specie and off-market asset transfers were transactions whereby SMSFs could transfer assets, in lieu of cash, to or from fund members or their related entities. 

According to Morcom, as of July 1 this year investors will have to sell their assets on the market first, contribute cash to their SMSF, and then rebuy the assets, exposing themselves and their assets to the chance of market fluctuations during the transaction.

"When in doubt, investors should seek the professional help of their financial adviser to ensure they are eligible to utilise various strategies and aren't in breach," he concluded.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks 1 day ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 6 days ago

TOP PERFORMING FUNDS