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Can a SMSF Buy a Classic Car? Discover What’s Really Possible
Manage episode 507479115 series 3684950
In this insightful TFS WealthCast episode, host Pramu Rodrigo sits down with financial planner Sonali Rodrigo to demystify Self‑Managed Super Funds (SMSFs). Together they explore what an SMSF is and who can set one up, highlighting key requirements such as membership limits (up to six people), residency rules and the two‑year temporary absence test. Sonali explains why SMSFs are not for everyone and stresses that trustees are responsible for strict compliance with ATO regulations.
Listeners will learn about the investment universe available to SMSFs, from conventional assets like shares, ETFs, bonds and term deposits to more flexible options such as residential and commercial property, collectibles and even cryptocurrency. Sonali outlines the major advantage of leverage borrowing within the fund to amplify returns on property while emphasising the importance of meeting legal and auditing requirements. The conversation also covers restricted assets (classic cars, wine or whisky collections), business premises purchases, and the need for proper insurance and documentation.
As the discussion moves toward retirement planning, Sonali details how to convert an SMSF into a pension, the tax benefits involved and strategic considerations when selling assets. She provides a practical checklist of factors to consider before setting up an SMSF: adequate account balance (typically $200k–$250k), cost versus scale, trustee responsibilities and the value of professional advice.
Whether you’re an aspiring SMSF trustee or simply curious about alternative super strategies, this episode offers a balanced look at the opportunities and obligations of managing your own super.
Note: All information is general in nature and listeners should seek personal financial advice before making decisions.
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