While a SMSF cannot lend money to a member or relative of the fund, it is possible for a loan to exist with a related party of the member. Similarly the SMSF can invest into a related party of the fund. The proviso is that the value of all such related party transactions doesn't exceed 5% of the total value of the fund. Tread carefully, because a mistake may not be easily remedied.  

With the U.S. growing at an anaemic level, and Europe balancing on the brink of recession, we are yet to see signs of meaningful recovery from the global financial crisis. Negative headlines continually rattled the markets with few positives to cheer about, except for perhaps resilient corporate earnings and moderating inflation. We think in 2012 every basis point of return will be hard fought. Regional diversification will need to be firmly in place, as the economic centre of gravity will continue to shift eastward. As returns from traditional investments remain flat, alternatives will rise in importance and volatility, while certainly causing market stress, will also bring opportunities for dynamically-managed portfolios.  

The new Draft Ruling from the ATO that will require a pension account to automatically revert back to the accumulation phase upon the death of a member is consistent with their poor policy on excess contributions. 

Following my previous article for retired members in pension phase to lobby federal members and the Government for a reduction in the minimum drawdown for account based pensions. Mr Shorton has announced an extension to the draw-down relief to the 2012-2013 financial year. 

I was cleaning up my office at home over the Holiday period and came across some old “Money” magazines. Picking up one that had a special feature on superannuation from October 2002, I flicked through the articles and was interested to see how much things had changed and how much has stayed the same.