# Shares In Superfund



## laurie (19 September 2006)

I have a question re Super:

1.If I own say a portfolio of 10 shares what Superfund do I need to open to place them in.? 

2.Assuming I place them into the fund and start trading do I have to pay CGT on the profits because unlike any other fund no income is coming in from myself as I'm retired

3.Do dividends have to stay in the fund or can I take then out to live on!

thanks for any assistence much appreciated

cheers laurie


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## Bomba (19 September 2006)

Answers:

1: A self managed super fund.  SMSF's may be costly if the assets within the fund are below $100,000.  Also by placing them within the super fund, you may need to pay capital gains, as it is a transfer of ownership.

2: Yes you do have to pay capital gains.  A capital gain is treated as income, as such tax needs to be paid on it, by the super fund.  U will receive concessional tax treatment, and may pay tax at 15% or 10% depending on how long u have held the share for.


3: If u meet a condition of release from super, such as retirement, then you can pay the dividends to ureself.


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## doctorj (19 September 2006)

As much as it sounds a tired, overused phrase.  Seek financial advice.   They'll be able to advise you on what is the most effective course of action.


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## grumpee boi (20 September 2006)

Apart from the aforementioned SMSF, Australian Super (formally ARF, Finsuper and something else) is an industry fund that allows the top 200 shares on the ASX.  Don't know whether it is appropriate for you but it is a start and since it is an industry fund extremely cheap.

Adam


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## Prospector (20 September 2006)

I think you situation is a little more complicated than others have realised as you say you are already retired.  In which case you are in the 'pension' phase and maybe no CGT is therefore likely payable by an SMSF.  It sounds like you might be better off cashing them in (which will make you personally liable for any CGT depending on income), then purchasing an annuity, or whatever they are called!  

Even though I have been managing my own SMSF for well over 10 years, I know nothing about the pension phase which is when I will be seeking much more advice about what is best to do.

So I am with DoctorJ - you must seek financial advise before doing anything!


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## drmb (28 January 2007)

Prospector said:
			
		

> I think you situation is a little more complicated than others have realised as you say you are already retired.  In which case you are in the 'pension' phase and maybe no CGT is therefore likely payable by an SMSF.  It sounds like you might be better off cashing them in (which will make you personally liable for any CGT depending on income), then purchasing an annuity, or whatever they are called!
> 
> Even though I have been managing my own SMSF for well over 10 years, I know nothing about the pension phase which is when I will be seeking much more advice about what is best to do.
> 
> So I am with DoctorJ - you must seek financial advise before doing anything!




I started my smsf over 2 years ago with the help of a specialist company in Canberra, it cost about $1700 in set up fees which included ASIC abn. But after one year found its accounting fees (3k)about double my accountant's so handed it over to him. I now let hm worry about the CGT and BAS, I just pay the amount due. I did have a finacial advisor but found the advice   and the fees high, got put onto dogs (imho) such as wil, gnaha, prv, mir, cin, etc., but also tcq which is about the only one I still have from those days and it's a gem imo. Qucikly got riid of dogs and got a balance between the CBA, DUI, ARG, AFI, WOW, RIN, IAG, SGN, TCQ (about 50%), Platinum Asia (about 15%), and the rest in "fun" stocks that make life inteeresting for me as I am near retirement and want some interest. My "fun" stocks are AGS, BMN, CDU, DYL, IMD, INL, PDN, ZFX, and UXA. By far those U stocks have been making the smsf "paper" rises, BMN in particular about 150%! I think you need to have over 300k to make this worthwhile, and remember - patience!


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## markrmau (28 January 2007)

I use 

http://www.esuperfund.com.au

and am very happy.

I started with $50k.


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## drmb (28 January 2007)

markrmau said:
			
		

> I use
> 
> http://www.esuperfund.com.au
> 
> ...




Wow! That is very cheap (copy below)! I think that you would still have to pay the ASIC charges although there is no setup fee. The annual account and audit fee is about 1/4 of what my accountant charges. How have you found them (esuper)? OK? How long has it been in existence? Cheers

Qupte "Lowest Fees in the SMSF Market - At ESUPERFUND our costs are FIXED  so you know in advance what you are paying. No surprises. This makes it relatively straightforward to compare our costs to other SMSF and non SMSF providers. Consider the following comparison:     
Fund Establishment Fee 
ESUPERFUND do not charge a Fund establishment fee to setup a SMSF. A review of the marketplace indicates that other SMSF providers charge between $500 and $1,000 to setup your Fund.  
ESUPERFUND : 
Market Fee :  $NIL 
Between $500 and $1,000  
Annual Compliance Fee 
Our annual compliance fees are FIXED at $599 per annum. A review of the marketplace indicates that other SMSF providers charge between $1,500 and $3,000 to administer your Fund. In most cases our competitors quote only their base fees that increase the more transactions or investments your Fund has. At ESUPERFUND our price is FIXED at $599 per annum whether your SMSF has 10 or 1,000 transactions per annum.  
ESUPERFUND Fee : 
Market Fee :  $599 FIXED
Between $1,500 and $3,000 " Unquote


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## markrmau (29 January 2007)

I have found them to be excellent. They used to be called Nicholas Needham, but changed their name in Jan 07.

In Jan07, they also reduced rates to what you quoted to get everyone to move to a bank west account + etrade. This is so they can automagically import transactions and reduce compliance costs further. (In addition to etrade, I use a full service broker and they don't seem to mind).

All I can say is you would be crazy to spend 3-6 x somewhere else. 

What ASIC charges are you referring to?


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## Julia (29 January 2007)

markrmau said:
			
		

> I have found them to be excellent. They used to be called Nicholas Needham, but changed their name in Jan 07.
> 
> In Jan07, they also reduced rates to what you quoted to get everyone to move to a bank west account + etrade. This is so they can automagically import transactions and reduce compliance costs further. (In addition to etrade, I use a full service broker and they don't seem to mind).
> 
> ...




I think there's an ASIC fee payable if the SF is set up as a company.
Stand to be corrected on this.  No such fee payable if SF is in name of one or more of the Trustees.

Julia


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## drmb (29 January 2007)

Julia said:
			
		

> I think there's an ASIC fee payable if the SF is set up as a company.
> Stand to be corrected on this.  No such fee payable if SF is in name of one or more of the Trustees.
> 
> Julia




I think we paid about 500+ ASIC fees to set up SMSF ABN, didn't query the company who set it up for us (Dixons) maybe should have. Hindsight 20/20! Will have to seriously check out transferring to esuper and will check it out. I think Nicholas Needham may be related to Alex Needham who I used to use anyway. Cheers and thanks for information, very useful


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## markrmau (31 January 2007)

As far as I am aware, there are no ASIC fees. There is a $45 p.a. ATO compliance fee.

"That piece of halibut was good enough for Jehovah."


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