Praemium Ltd · ASX:PPS
Praemium — Cavendish Superannuation — Conference Presentation (March 2010)
10 slides from Praemium's conference presentation, March 2010
Slide 1: SMSF Borrowing the DIY Way
SMSF Borrowing the DIY Way Cavendish Superannuation Pty Ltd Specialists in Superannuation Administration Services
Slide 2: The Structure
The Structure SMSF has immediate beneficial interest Repayments SMSF Bank, $200k + $300k Member, etc $300k Loan is to the SMSF to buy the NEW security asset ONLY Expenses Associated loans to be at market - back to back & 2nd mortgages available Purchase is by Pays for property $500k Nominee the Nomi
Slide 3: SMSF Borrowing Examples: Bob
SMSF Borrowing Examples Bob is single, employed, 55, with a $1 million dollar inheritance from his Mum’s estate. He wants to put it into Super but is caught by the non-concessional contribution caps. $450K Contribution SMSF Bob the $550K Loan Lender Balance of Fund Nominee Trustee Value of at least
Slide 4: SMSF Borrowing Examples: Jack and Margaret
SMSF Borrowing Examples Jack, 45, & Margaret, 44, have an $800,000 business premises they own and occupy. They owe $300,000 on the property. Their business is profitable but cash flow is always an issue. $200K CGT Roll Over Jack & Margaret SMSF $200K Loan (2nd Mort.) $400K Loan SMSF Registers for GS
Slide 5: SMSF Borrowing Examples: Jim and Janice
SMSF Borrowing Examples Jim, 38, and Janice, 37, have equity in their home. The owner of their business premises wishes to sell for $400,000. They have $100,000 in their Fund. $300K Loan Jim & SMSF Janice $100K They rent the property Nominee $300K Loan from the Fund at market rates. Trustee Purchase
Slide 6: SMSF Borrowing Examples: Gino and Maria's farm
SMSF Borrowing Examples Gino, 66, and his wife Maria, 65, want to retire from their farm they have owned for 20 years worth $2M. They have no super. Their sons, Frank & John, have worked on the farm for years and want to buy it off them. The sons have $1M collectively in their SMSF. The son’s SMSF p
Slide 7: SMSF Borrowing Examples: Fund member accounts
SMSF Borrowing Examples The Fund member accounts now looks like this; Frank & John – Balance $1M Gino & Maria – Balance $1M • Segregated as Farm @ 2M • all tax exempt component with $1M debt • paying reversionary account • All interest tax deductible based pensions • will pay out tax free to sons on
Slide 8: Important Considerations
Important Considerations 1. Acquirable assets 2. Appropriate asset types 3. Costs including Stamp Duty 4. Capital Gains Tax 5. Cash Flow Including Future contributions 6. Trading the asset 7. No dividend reinvestment 8. Personal Guarantees 9. Loan Review Risk 10. Death Cavendish Superannuation Pty L
Slide 9: SMSF Borrowing Issues on Death
SMSF Borrowing Issues on Death • Lender may call up loan • Asset may need to be liquidated/paid out of the Fund • Can beneficiaries refinance • CGT in the Fund • Tax payable by adult independent children • Life Insurance • Reserves • Deed wording Cavendish Superannuation Pty Ltd 9 Specialists in Sup
Slide 10: Questions & Discussion
Questions & Discussion Visit our stand Or call me David Busoli 0422 282 161 [email protected] www.cavendishsuper.com.au Cavendish Superannuation Pty Ltd Specialists in Superannuation Administration Services
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