How SMSF can work in the current climate
Self Managed Superannuation funds are a hot topic of conversation at the moment.
Some people are concerned about their super not working for them and are just not sure what to do.
Not having control of your finances can be unsettling, especially as super is on the share market. For many clients who come to us, that unsettling situation is disconcerting for them. for the most part, these are people who have worked hard for their money and want it to continue to work for them. Many of our clients stress this issue.
Here’s an example of how SMSF can help businesses to regain control. A well established business had a property ownership entity. That entity had borrowed money to buy a commercial property within which they work their business. That premise was now too small and they needed expanded premise. They had good equity in their existing premises but they need to move up into a higher gear. The principals of the business have cash sitting in their SMSF.
So the super fund was able to buy their new commercial premises. The business itself, entered into a rental contract with their self managed super fund.
The business then sold their existing premise and use the equity from that sale to inject into the expansion of the business.