Government says you can borrow, but beware

Key Points Borrowing within super on three-year parole Leverage deemed acceptable, at 2.5% of SMSF assets Strategy requires very careful contemplation If you haven’t decided exactly when you’ll want to retire, but feel pretty comfortable that it will be at least a decade or so away, should you worry about taking a few risks if it means you might boost your balance? That’s the logic which leads some trustees of self-managed superannuation funds to not save in super, but borrow. It’s a strategy that sounds risky right from the start, but if the intended investment is property then most...

If you haven’t decided exactly when you’ll want to retire, but feel pretty comfortable that it will be at least a decade or so away, should you worry about taking a few risks if it means you might boost your balance?

That’s the logic which leads some trustees of self-managed superannuation funds to not save in super, but borrow.

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