Articles

Understanding redundancy and its financial implications has become more relevant than ever in 2009’s turbulent economic environment.

Q How does a SMSF work?

It works the same as a retail superannuation fund.  It accepts contributions from members, and invests and manages those contributions and subsequent earnings.  Importantly it must pass the “sole purpose test” of being set up for the sole purpose of providing retirement benefits.

Frequently Asked Questions.  Borrowing with your Self Managed Super Fund to invest in residential housing.

Q How does my SMSF purchase a property?

The SMSF chooses the property it wishes to invest in, in the ordinary way. Residential property must be purchased from an arm’s length vendor. Non residential property can be purchased for full value from related parties so long as the property is let for business purposes.

Many people reeling from the recent turmoil in global financial markets are looking for different ways to invest their superannuation.  At Apex Partners we are seeing increasing demand from clients to invest in property by establishing a Self Managed Superannuation Fund (SMSF).

Waiting for improvement in financial markets is like waiting for Godot although I remain convinced that, unlike Godot, improvement will eventually arrive. As I write, the <?xml:namespace prefix = st1??> US share market has hit a 12-year low, and the ASX200 is very close to its cyclical low. For the month of February, the S&P500 index fell by 11%, bringing its year-to-date drop to 18.6%. In the past year, it has fallen by more than 45%.

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The Australian Government announced on Friday 6 March 2009 that it will reduce both the upper and lower deeming rates by 1% each, down to 3% and 2% respectively. This is as a result of the ongoing global financial and economic crisis, and its impact on investment returns. This will apply from 20 March 2009.

February was another bad month for investors with global share markets continuing to decline following more evidence of an intensifying global recession. The Australian market closed in the red for the sixth month in a row, despite another interest rate cut by the Reserve Bank and the Rudd Government’s announcement of the another stimulus package.

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A poor month for global share markets

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As the Australian sharemarket passes its sixth consecutive month of declines, those who hoped for a better year in shares are wondering if the Australian sharemarket will, in fact, be better than what we experienced in 2008.   <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office"??>