Has anyone invested directly in shares through their SMSF? Our accountant (who is a genuinely nice fellow and family friend) asked us to consider setting up a SMSF and salary sacrifice into it every year to save on tax. He will also help us choose high performing "blue chips". He would like all 100% invested in shares , although i am resistant to that idea. Perhaps 30% to 50% as we have a long way to go since retirment. His main picks are banks, telstra etc because of the high dividends and tax imputation credits. No start ups or speculative stocks. We asked about property through a SMSF but he didn't recommend it unless the property could be bought outright. In my view there is not a lot of decent property in Sydney for under $400k which is the problem. Something that the kids can inherit and live in one day, in a decent area, not the housing commission slums where there are cheaper properties with a better rental return. I'm not even going to bring up investing in PMs through a SMSF as he would totally advise against the idea. In his defense he has done an excellent job on our returns every year and he knows the tax system extremely well, keeps up to date etc. Thoughts? I know this may not be a popular view around here but has anyone invested directly in shares through their SMSF?
I invest directly into stocks via my SMSF however there is no way the amount invested would ever be 100%. It is much closer to 30% at the moment. Most of that is in high yielding stocks/utililities (absolutely no banks though despite their yield) with a little bit for trading/speculation purposes. They've been quite good earners for the last financial year too I might add. It is a very defensive mix despite the gains that have occurred recently and I am really only interested in the dividend. Any capital gain is a bonus. I've gone to 100% cash on many occasions the last being April of last year which turned out to be a fantastic call and I am still of this mindset. If the market looks about ready to pop then I have no hesitation in selling up and sticking it in cash and waiting for bargains. If you have any specific questions I am happy to answer them (all care no responsibility basis of course) - via PM. Without wanting to cast any aspersions on the abilities of your accountant but being able to prepare tax returns well does not equate to being able to give good investment advice and the 100% in shares would make me take pause although I suspect that is the preference as they are easy to value/check etc. More esoteric investments means more work and more chance for a screw up. Agree re. property and leverage. Not worth it in my opinion for a number of reasons.
I can see a number of problems with your current relationship with your accountant. For a start if you view him as a friend then he cannot be your advisor. You need to have advisors who you listen to their advice and then chose to either act on that advice or use that advice to tell you you do not want to go there. I would question why anyone would want to expose 100% of their retirement savings into the share market. As for him " helping you pick shares" is he linked to some platform where he gets commission? As for buying a property outright in the super fund again what is the rational of devoting so much to one asset that limits you to 400K. As for an excellent job on your returns I bet the ATO is very happy with him too but I am not sure you are getting advice above and beyond what the average sheeple gets. You need to be the one driving the investment plan and you need to own that plan. Do you have a plan? Kind Regards non recourse
If thought the guy was asking if anyone invested 100% of their SMSF in shares.I didnt see him ask for unsolicited advice on asset allocation in his SMSF. Seriously Dude stop checking everyones homework .
I don't give advice mate just my personal opinion which is the last time I looked at the guidelines on the site is permissable. Some of what I said has been stated in other posts as well. I have not done the RG146 training that involves 3 days and a multiple choice test that gives you enough knowledge to put on a postage stamp to be a product pusher. If you have a problem with my posts perhaps you can ask the administrator to add an ignore feature to the site. I know I'd be happy to use it for your posts. Kind Regards non recourse
You may have good intentions however you have a terrible bed side manner and I personally find your delivery self serving and pompous.
I invest in shares via my SMSF. Maybe 20%. My advice is to seek a second opinion regarding asset allocation. 100% shares could be too risky.
easy peasy just ignore me. My brand of medicine comes with a bad taste, just put me on the shelf, life is too short to get our knickers in a knot I take the high road and you take the low road and we both will arrive if we keep stacking. Kind Regards non recourse
Agreed.Though Im not sure you are right about which Road we are on. How was Redback last night by the way? Who paid?
Yes, i don't feel too comfortable either with 100% in shares. Nonrecourse, we do not have a plan as yet. The amount in our super is not all that large less than 120k. At the moment it's in an industry fund mainly in cash and 30% share/fixed interest. Problem is we do not have enough for a property and we do not want to buy interstate. So our other choices are cash, shares, fixed interest and PMs. Our accountant believes that blue chip shares offer more benefits in terms of tax and a better return over a long period of time than property. Don't know if he gets commissions, doubt it but he would charge for his service. He is a sole trader not part of a larger group.
How are you going to get that $120,000 super up to $1 million plus without a written plan? If you set up an SMSF with a bare trust and tipped your $120,000 in here are the 6 ways you could fund a property in your SMSF http://www.evolvemysuper.com.au/strategies/6-ways-to-purchase-property-using-your-super/ Really? Then I think your accountant needs to study the returns of super funds that invested in Blue Chip Australian shares in the last 1,3,5 and 10 years. It was and is a dogs breakfast. I sacked 4 set of accountants over the last 20 years because they all hated me putting all our eggs in the property basket. The end result was we are now masters of our own destiny. Your accountant is just there to do your return. Only you can turn that $120,000 into $1million +++. Think and grow rich Kind Regards non recourse
