Just turned 50 and have $450,000 in my super. I want to diversify my investment portfolio and invest some money in a few start-up businesses through crowdfunding. Do I have to set up a SMSF and are there any restrictions on how much I can invest, I have been told no more than 20% of my super balance, is that correct?
To have the level of control required to pick and choose what start ups you want to invest in, you’ll need an SMSF.
There is no restriction in the law about how much you can invest in this space. The overarching rule is that you are managing your superannuation benefits with the sole purpose of providing retirement benefits when the time comes.
If you think investing in start ups is the best way of investing your super to provide retirement benefits then you shouldn’t have a problem.
Remember, these types of investments come with incredibly high levels of risk. It’s literally boom or bust, nothing in between & more bust than boom.
Being 50 you’ll likely have 10-15 years at most before you’d be looking to your super to provide you with some type of income. You may not be retired but will likely be looking to draw something from super. So you don’t have a whole lot of time on your side to be taking these types of risks with much of your super - you don’t have the time to recover possible loses.
Deal with a good accountant who can help you set the fund up & keep you on the right side of the compliance requirements. Brendan Curran on here is your go to in that space.
All the best.
03 9909 5800
thanks for the kind words James:):)
Stephen, your plan is unusual to say the least!!! I am not sure how the crowdfunding and a SMSF are going to tie in together, but it is very clear you need to get face to face with someone with the skills, experience and QUALIFICATIONS to help you. The more "boutique" the investment strategy in a SMSF, the more likely you are going to be under the microscope, and the more likely that you are going to run into hurdles with SMSF auditors, and also ATO auditors!!!! Because if the ATO gets the idea that your fund is some sort of tool to allow you to fund your own business and lifestyle on the sly, they will want to go through your books, and then you, like a dodgy curry!!!
Get in front of someone who can advise you clearly on what you can and cannot do with a SMSF. They are really a wonderful vehicle for the accumulation of wealth to fund your retirement. They arent good for much else. And do some reading yourself
the more internet searching you do the better. Please dont get sucked into anything that looks like an online platform for setting up and running your super on the cheap!!! But do get informed!!!