Self Managed Superannuation Funds (SMSF)
In these times of increasing instability in global financial markets there is a strong trend of both opening Self Managed Super Funds (SMSF) and holding precious metals (gold and silver) bullion or allowable valuable collectibles within them as part of a more balanced Super portfolio. No one wants to see their lifetime of Super savings evaporate in the next big financial crash. That crash, as they do, will happen without clear warning and could coincide with your pension phase, leaving you with little to draw on. We all vividly recall the anguish on the faces of retirees in coverage of the GFC. Holding hard assets uncorrelated to share markets and even property markets can protect you from that happening. The value of such hard assets will often increase as financial and property assets decrease in value. It’s all about wealth balance and preservation. For instance, in the GFC gold doubled whilst shares halved.
The Melbourne Vault plays a pivotal role in this. Holding your hard asset and collectibles in an independent high security environment is not only often required for SMSF’s, but addresses both the financial and personal security issues that safes at home or ‘under the bed’ don’t. Add that we can arrange All Risks insurance and Independent Audits at a fraction of what you’d pay for both with home storage and it becomes a very compelling SMSF solution. Bank safe deposit boxes don’t offer either, period.
Most of Melbourne’s bullion dealers will deliver to The Melbourne Vault so it also means you are not walking around town with your life’s savings.
SMSF rules (SIS Regulations) apply to collectibles such as art and jewellery. They also deem bullion coins in your SMSF to be ‘collectibles’ (and therefore subject to SIS Regulation 13.18AA) which relevantly requires them to be:
- Independently stored in a secure storage facility;
- Insured in the superannuation fund’s name; and
- For accounting and audit purposes, the trustees must be prepared to have the asset valued regularly.
For assets bought before 1 July 2011 you had until 1 July 2016 to comply with these rules. We are not tax advisors nor accountants so you should check with your own SMSF administrator or accountant. We are finding increasingly many SMSF administrators and advisors also believe precious metals bullion in bar form requires an annual audit and independent secure storage to meet the Trustees obligations. Again you should check with yours.
Signing up as a Self Managed Superannuation Fund (SMSF) is easy. In addition to your 100 points of ID we just need the front and signing/execution page of the relevant Super Trust Deed as well. Call us to discuss your particular needs.
