Q
MyhusbandandI setupa self-
managedsuperfundabout
sixyearsago,forthepurpose
ofinvestinginresidentialproperty.
WehavefivepropertiesinourSMSF.
I retiredrecentlyandmyhusbandis
duetoretireinSeptember.Wewould
liketotakeoneofthepropertiesoutof
ourSMSF(oncemyhusbandretires),
sowecanuseit forourselves.
Theproblemisthatthepropertyis
inthenameofourSMSFandwewant
totransferit intoournames.Isthere
a waythiscanbedonewithouthaving
topaystampdutyagainona house
thatwe(thetwo-memberSMSF)have
alreadypaidwhenourSMSFbought
the property?I am getting a lot of questions about
residential property in super funds, most
relating to the falling market, so yours is
an interesting one, Karen. There is a lot
of complexity in an SMSF and even more
with holding property in the fund.
You can sell or transfer a property to
any party, including yourselves, that is not
“arm’s length”. As you know, this does
not apply when an SMSF buys a property.
So you’ll need to get it valued, but it is
a transfer and I do believe you will pay
stamp duty. Your question is, on the face
of it, really simple. But the technical nature
of an SMSF makes it a real minefield, so
it is really important that you go to your
SMSF adviser, probably your accountant,
and get professional, detailed advice.ForKaren’spropertytransfer...
Super is yourbest friend
for growth investments
Q
I am a typical 64-year-old female.
I spent 10 years out of the
workforce as I was raising my
children (no childcare in those days).
I have only $90,000 in super and am
currently contributing an extra $400
per fortnight before tax. I am also
minimising tax by salary packaging
(I am a nurse working in aged care).
I own my home (valued at about
$500,000) and have a small villa (around
$180,000) that is negatively geared
($75,000 mortgage). I am thinking of
selling my villa in the year after I retire to
try to avoid paying too much capital gains
tax. As much as I would love to retire at
66, I believe that fiancially it will be more
like 69, when I can also pick up long
service leave. I love to travel and would
like to still have a holiday each year
after retirement, if possible.
I have a few shares such as Telstra,
Coca-Cola Amatil, Tabcorp and
Woolworths, with a total value of around
$3000. I have $28,000 in the bank.
Could you give me some ideas on growth
products that would suit my situation?I am delighted that you own your own home,
Glynis. That provides a terrific base. If, after
retirement, you sell the villa, along with your
investments and super, you will have invest-
ment assets of around $230,000 plus the
growth on these and the $400 you are
adding to your super each fortnight.
The next most important issue for your
lifestyle is your eligibility for a pension. Today,
a single home-owning retiree can have up to
$250,000 in investments and draw a full
pension. If you work to 69, you will have more
than this, but that limit should increase with
inflation. So it seems to me that you should
be getting a full aged pension, or close to it.
This pension would be around $20,000 a
year and would be the key part of your
retirement income.
In terms of growth investments, I think that
super is your best friend. I would suggest you
look at adding as much as you sensibly can
through salary sacrifice contributions. Hold-
ing some cash as a safety buffer is always
a good idea, so I’d focus on building your
savings in super. Make sure you are in a
low-fee fund and in the investment option
that suits you best.SMSF is a
minefield
To boost Glynis’s retirement savings ...