An SMSF can choose to invest in any asset that the trustees believes is appropriate. Trustees have a great deal of freedom to select investments that they think will suit the needs of the fund and its members. But there are some specific restrictions in legislation. Before making any investment Trustees need to ensure that:
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Tip An SMSF’s investments need to be for the sole purpose of providing retirement or death benefits to members or member’s beneficiaries. Therefore, there can’t be any pre-retirement personal benefits provided to members or related parties (such as letting members use assets of the fund, e.g. holiday house). |