Lumpy assets & SMSFs: Bringing it all together

National Conference 2021

One of the advantages of SMSFs is that they provide the flexibility to invest in a range of alternative assets and asset classes not available via large funds. However, many of these assets can have a high cost of entry and are illiquid. As a result, these ‘lumpy’ assets can cause a range of potential headaches throughout the lifecycle of a fund.

This workshop session aims to identify the issues and risks that can come with having lumpy assets in an SMSF and how they can best be managed or avoided. Topics for discussion include:

  • Identifying lumpy assets – it’s not just property;
  • Getting lumpy assets into an SMSF – the what, why and how;
  • Lumpy assets and the sole purpose elephant in the room:
  • Dealing with lumpy assets from an investment strategy perspective;
  • Lumpy assets and the payment of retirement/death benefit lump sums;
  • The importance of starting with the end in mind;
  • Using lumpy assets to fund pensions – really?

At the end of the session, you will be able to:

  • Identify the different types of lumpy assets that SMSFs may hold;
  • Outline the issues involved in transferring large lumpy assets into an SMSF, and;
  • Describe the different problems lumpy assets can cause when a fund starts paying benefits.

The contents of this resource are taken to be correct at the time of publication.

Disclaimer: Technical Papers contain factual information only and are prepared without considering particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. The information contained in this document does not constitute advice given by the SMSF Association to you. If you rely on this information yourself or to provide advice to other persons, then you do so at your own risk. The SMSF Association is not licensed to provide financial product advice, legal advice or taxation advice. We recommend that you seek appropriate professional advice before relying upon the information in this technical paper. While the SMSF Association believes that the information provided is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this paper is not considered financial advice for the purposes of the Corporations Act 2001. © SMSF Association