Withdrawning your super, has anyone been succesful? And how?

Has anyone succesfully withdrawn their super under a particular circumstance and been succesful? If so how and what meathods were used? We all know how volatile auper accounts can be and so why should you have no say if you feel it is under threat from financial collapse? After all they are happy to invest butnif all goes belly up theres no compensation.... So how can you protect your investment?

 

You could get a Self Managed Super Fund (SMSF) and roll over the funds.

That way you have more control over it.

Then you can put it in a bank, invest in your own share portfolio or even buy physical metals and store them at home.

Plenty of options

 

Hi Silverest

This was a hot topic during the GFC and if withdrawing without meeting a condition of release was allowed I reckon it would be catastrophic.....

So I have included details of what the conditions of release are below which are the standard TTR, preservation age however, it can also be illness which will need support with alot of attention from the auditor and the ATO before the withdrawal is granted. I have had a couple of cases of early access to benefits and I can tell you its quite sad!.

Cheers, Ivan

Conditions of release
Conditions of release are the events your member needs to satisfy to withdraw benefits from their super fund. The conditions of release are also subject to the rules of your SMSF (as set out in the trust deed). It's possible that a benefit may be payable under the super laws, but can't be paid under the rules of your SMSF.
The most common conditions of release for paying out benefits are:
Retirement: Actual retirement depends on a person's age and, for those under 60 years old, their future employment intentions. A retired member can't access their preserved benefits before they reach their preservation age.
Transition to retirement (attaining preservation age): Members who are under 65 and have reached preservation age, but remain gainfully employed on a full-time or part-time basis, may access their benefits as a non-commutable income stream.
Attaining age 65: A member who reaches age 65 may cash their benefits at any time. There are no cashing restrictions. (It isn't compulsory to cash out a member's benefits merely because they have reached a certain age.)
There are a number of other circumstances in which benefits can be released, such as incapacity, severe financial hardship, temporary residents leaving Australia, terminal medical condition and terminating gainful employment. Some of these permit early access to benefits before reaching preservation age. There are specific rules for each of these and some have restrictions on the way the benefits can be cashed.

 

So i can do this with a self managed find? Cause this is my intention, however do i then have to acquire a broker? Or finance manager? Am i able to withdraw the funds into cash once in a smf?

 

I may have misread your question. The conditions of release above relates to SMSF.

However, yes, you can start a SMSF and rollover your industry/retail/ employer sponsored superannuation balance and transfer that amount into your SMSF. Once the cash is in the SMSF you are able to take control and invest where you like (in compliance with your stated investment strategy and trust deed).

Let me know if you have any questions

Cheers, Ivan

 

There are a lot of options depending on how much you want to get involved.

You can do it all on your own, which is good for cutting costs but it means you have to do a lot of leg work and background reading. Or you can get someone to do the whole thing for you, which costs more but is a lot easier.

And of course there is everything in between.

I personally went with esuperfund, it was a budget option, so I had to fill in some online forms and it is quite restrictive in what you can use but it sets you up with a bank account, a broker and runs the audits for you.

The fees are not too steep and you do get some free services, like the set up fees are waived and the first year's audit is also free.

They won't give you any advice about investing but they will make sure that your account is compliant so there will be no trouble with the Australian TAx Office.

However if you put it into a bank account and then withdraw it I think you will be in trouble, lots of trouble.

Like me, you seem to be under the idea that it is somehow your money, the ATO sees it a bit differently. Esuperfund won't give you any advice and will probably drop you the moment you do anything like that.

 

Hey mate, correct, you cannot withdraw from the fund unless its an expense to be reimbursed in the running of the fund (i.e set up fees/ property expenses) and/ or you meet a condition of release which was stated above. If you have any questions, happy to answer them.

Cheers, Ivan

 

Yes i can see your point and i think its damn right outrageous that the government considers it their money after all we pay taxes on our pay thats THEIR money but then to try take claim to our long term invested money that WE the people work hard for is just unbelievable. If i ever got into the courts for doing such an act like withdrawing it i would just tell the judge how it is but knowingly i would most likely end up in jail or having to return it lol . It all comes down to the government not wanting too loose out n if you withdraw it would be like taking away the governments investment so to speak and that my friend is an indian giver, why give the people a sum to invest if they cannot pull it out to safe guard it.

 

Super's forced savings has another effect as an economic stabiliser.

I know you can withdraw at any age if you have a terminal illness or the like and can prove it via doctors.

 

I have an incurable disease with expensive medication plus im sinking into some debt at the moment after being terminated after a compo claim but im not sure if i am able to apply, i mean i would take their offer of a max grant $10,000 but then u get copped with a 21.5% tax, can anyone tell me more about transferring to SMF then purchasing physical silver to store at home? As i have a suspicion that their might just be a rise in silver and wouldn't mind jumping on the band wagon

 

Hi mate, sorry to hear about your personal situation.

Tick - You can set up an SMSF
Tick - You can purchase PM
NO Tick - NO you cannot store in personal residence.

There are a number of providers for storage which are safer and more importantly compliant.

Cheers Ivan

 

Thanks but its not like terminal just can be delibitating at times if not on meds. Safety for me is not an issue neither is compliance as i am a collector of firearms and have a secure premise plus insurance, but i was more hoping to be able to keep physical silver as apposed to EFT as the idea of a third party having my EFT'S in trust does no satisfy me nor does the idea that i may be buying over sold paper silver with no physical silver backing and also in another GFC or government seizure the third party could go down along with my investment. Would i not be able to get a legal document drawn up with certain conditions in which i could hold my investment securely in my own premise?

Or am i just being paranoid lol

 

Having lived in the states, paranoid and firearms is not a good mix

 

Lol good call luckily it was metaphorically

 

If you have your SMSF precious metals stored at an approved storage provider and are paying for this service through your SMSF, are you allowed to put your personal precious metals stack in with this and save having two 'vaults'? Would this be considered safe?

 

Technically I believe you are "suppose" to keep them separately but I don't know how this could be verified by an audit so long as you keep your SMSF metals where they should be.

 

^ It is possible to store personal and SMSF, however if it is physically audited by your auditor or for some reason the ATO you'll be in the turtle. Not a good idea.

Silvervest if you mean to withdraw your super before you're 60, for yourself to use, there are limited conditions for people under medical incapacity. Get financial advice before you do anything. I know someone who was successful after a months long application - he 'needed' a hearing aid he now no longer uses, has no retirement savings and to boot, lost a huge chunk of it in taxes.

No idea how much but for example, someone leaving Australia forever can withdraw their Super and be taxed at 45% regardless of their normal income!!!

Personally I run my families' SMSF and am very happy. I have an accounting background and am doing everything that I can, myself. Without such background, I would recommend ESuper as an introduction. You need to do some reading and learning about investing though. That is invaluable on its' own.

 

i'd be happy just to get paid my super. the company i work for hasn't paid any employee their super for 10 months!!!!! yes, i've been to the ATO and complained and they sent me a nice letter saying it can take up to 12 months to get it and that sometimes it's unrecoverable. so no, employers don't really have to pay super.

 

Yes but then the company is not only doin you and other employees a disservice but themselves aswell leaving themselves open to be sued. A company down here in sydney did just this and was dorced to close up shop and pay every cent of it to the employees plus any tax that they hasnt paid in the last 3 years so dont go down without a fight 9% contribution dosent seem like much but over 12 or so it adds up.

Has anyone traded in Silver EFTs? With there SMSF? Would this be an option to go down rather than trying to foght human services for my super? Just from qhat i have heard it can be risky as it is a third party involved etc.

 

If you need cash why haven't considered selling your firearms collection ?



Your super is locked up for a reason - to stop you spending it.

If your concern is really about what it is invested in, then as others have said, set up an smsf, transfer the money, buy silver and store it according to the rules. But you still can't get the money out and spend it.