SMSF Investment Strategy

Previous

Next

2 Comments

  1. Brian Woodham

    Hi Chris,

    My mother currently has a small SMSF in Pension mode under management with a private Financial organisation. They recently advised her its no longer worth having under their management given the annual costs. There is only about 120K left. I’ve investigated moving her back to an industry Pension fund but Centrelink said they would ‘deem’ it which would affect her pension. Any thoughts on what we should do?

    Reply
    • Chris Strano

      Hi Brian,
      My first thoughts are to compare the fee savings from closing down the SMSF with the potential reduction in Age Pension entitlements. This will give you an initial idea of the best way to go.
      Based on the balance, I wouldn’t expect the reduction in age pension to be overly significant. However, I can’t be sure without knowing the full situation. You would want to be sure that closing down her existing pension wouldn’t result in a full loss of Age Pension due to the considerable ancillary benefits that come along with the Age Pension which are important to older Australians.
      Regards,
      Chris
      p.s. I am assuming that your mother currently has a grandfathered pension by the way you have posed your question. If not, there should be no change to her Age Pension whether she is in a SMSF or some other fund.
      Related Posts
      What is a Grandfathered Pension

      Reply

Submit a Comment

Your email address will not be published. Required fields are marked *