Investing with your SMSF

Who is responsible for the SMSF investments?

The trustees of the SMSF are responsible for the investments made by the fund. Unlike APRA regulated industry and retail super funds, members of an SMSF are not entitled to compensation if they are the victim of fraud or dishonest conduct by a third party.

 

Is there a restriction on what percentage I can invest in each stock / ETF?

No. There is no restriction to the investments of an SMSF, provided the investments align with your SMSF investment strategy.

 

Does my SMSF need to be diversified?

The regulations require SMSF trustees to consider diversification as well as risk, liquidity, ability to pay benefits and whether to hold insurance on behalf of members.

 

Can I invest into Bitcoin and cryptocurrencies with Stake Super?

When you sign up to Stake Super, we also refer you to our trading platform, Stake, to enable you to invest in stocks and ETFs in Australia and on Wall St. Whilst Stake’s trading platform does not enable direct purchases of Bitcoin or other cryptocurrencies, Stake provides access to over 2,500 ASX listed equities and +9,500 U.S. stocks, including Bitcoin and other cryptocurrency ETFs.

The investments available to an SMSF are wide-ranging, so there is nothing preventing an SMSF from investing in crypto assets or any other allowable investment. Investing outside of the Stake platform will incur additional fees as per our Stake Super Fee Schedule.In addition, the administration time required by you as a trustee will increase.

This is not a recommendation to invest in any particular financial product or cryptocurrency. Stake Super is not licensed to provide financial product advice and you should consider taking advice from the holder of an Australian Financial Services Licence holder before making a decision relating to a financial product.

 

How does my SMSF move funds to USD?

Funds can be moved to USD via the Stake app or website.

 

What happens if I invest outside of the Stake platform?

Investing in allowable SMSF assets outside of the Stake platform will incur additional fees as per our Stake Super Fee Schedule.

In addition the administration time required by you as a trustee will increase.

 

Can I use a different bank account for my Stake SMSF cash account?

In general the investments available to an SMSF are wide-ranging so there is nothing preventing an SMSF from using a different bank account. Investing outside of the Stake platform (which includes holding an additional bank account external to the Stake platform) may incur additional fees as per our Stake Super Fee Schedule.

 

Can my SMSF pay for a Stake Black subscription?

Yes. The Stake Black subscription fee can be debited directly from your Stake Super AUD account.

 

Can my SMSF pay for investment or stock research subscriptions?

Yes, your SMSF may pay subscription fees that are necessarily incurred by your SMSF.. All invoices should be issued in the name of the SMSF.

 

Do I need to use Sharesight for my SMSF portfolio?

With all Stake Super customers we will take care of the reporting after the end of the financial year. This includes calculating any capital gains / losses on your Stake portfolio in Australian dollars as well as recording all dividends and tax credits. We need to undertake this reporting to accurately prepare the SMSF EOFY accounts.

If you want to track your SMSF portfolio before the end of the financial year or use other financial reporting and tracking tools that is entirely up to you, but there is no requirement to do so.

 

Can my SMSF pay me for managing my investment portfolio?

SMSFs cannot pay their trustees for carrying out their duties in the trustee's capacity. In limited circumstances where the trustee performs the duties or services other than in the capacity of trustee, trustees may be paid.No. 

 

Can my SMSF claim a tax deduction for the Stake FX fees?

No. The nature of these fees (FX spread) means that they are not tax deductible. They are simply absorbed into the currency conversion.

This question has been answered in further detail by the ATO here: Forex Fee Expense Claim, specifically: “Even though there may be an identifiable component of the transaction amount that is clearly attributable to a bank (FX) fee, the legal nature of this transaction does not involve a bank (FX) fee. You also have to account for any gains or losses on the basis that there is no bank(FX) fee.”