939 stuck in a gym contract, SMSF & ETFs, estate planning for kids and land tax

Glen James (0:06)

Today, on the show, we are talking. Someone here has got a self-managed super fund. They want to know what to do. They don't want to buy a commercial property, and they can't buy Rezzy investment properties anymore.

Hell hath frozen over. We're going to talk about gym memberships. There's an interesting question there. Frustrating money moments. We'll talk about that. Wheels, estate planning. What do we do when we've got beneficiaries and kids? How do we carve up the assets? And a bit on land tax. We are joined today by Rach Crune and John Pigeon. They're hosts of the This Is Property Show here on YouTube. Give them a subscribe and like on YouTube.

We're going to get into it, unless anyone has any open comments, opening comments.

John Pidgeon (0:51)

Now let's talk gym.

Glen James (0:53)

Do you want to talk gym?

Rachael Crune (0:54)

Get right into it.

Glen James (0:55)

Well, we're not doing gym, John. The first one is not the gym question.

John Pidgeon (1:00)

Gym John.

Glen James (1:01)

There we go. Hi, Glen. I'm a long-term listener of You and John for at least five years. Wow. I've learned a lot of knowledge through you both. We're currently building our first home in Adelaide. We are four in the family with two kids in primary school. My wife, 42, and I, 45, have around 400k in super.

As the Self-Managed Superfund Residential Lending has ended, and we don't want to buy commercial, what do you think of using this amount into high growth ETFs, VDHG or similar? Is it too risky? What would Glen do in this instance? Well, thanks for listening. You probably should know what I would do in this instance if you've been listening for five years.

What do you guys reckon about this?

John Pidgeon (1:56)

Well, he's gone straight to you. It's not about Rach and I, is it? This question is...

Rachael Crune (2:00)

He has not listened to me. What would you do?

Glen James (2:03)

So if you had 400 between the two of you...

Rachael Crune (2:06)

Well, it would depend how they looked out of super for me. Like if it was me and I had a lot of property out of super, I'd be inclined to leave my super in a normal fund, but that's just what I personally would do.

Glen James (2:19)

Yeah. John?

John Pidgeon (2:21)

Yeah. I think it's good that they're thinking about overall wealth because they're building a home in Adelaide at the time. Usually that's enough for one person at one time, isn't it? But obviously, yeah, things have changed in the world of residential.

I'm a believer coming from the property corner of super, just go and do super things like just superannuation funds, set and forget, contribute to it, get on with your life. Yeah.

Glen James (2:56)

But that's also like, you've got to look at it, super is just a tax structure.

John Pidgeon (3:05)

Yeah. But I'm not going there getting too cute with it.

Glen James (3:09)

In your property mind, I don't know why I'm coming in hot with you.

It's diversification for property. In your property mind, you just see super as not sure shares, not property.

John Pidgeon (3:22)

Correct.

Glen James (3:22)

Yeah. So we need to understand what we're invested in with our super funds.

Rachael Crune (3:28)

Yes.

John Pidgeon (3:29)

And how many Australians think they know that?

Glen James (3:32)

Well, the most recent Vanguard Retirement Study, I think around only 40%, no, something like that.

But what I would do in this instance, number one, I hope you have not set up a self-managed super fund. There is no reason on the planet that this couple needs a self-managed super fund. And if they've already got one set up, I'm probably winding it back because when we talk about high-growth ETFs, VDHG or similar, most super funds are well diversified portfolios like these funds. In fact, most super funds, you would get a little bit more diversification because you'll have some infrastructure assets, you might have some gold, you might have some emerging markets, potentially stuff that isn't in quote unquote high-growth ETFs and VDHG.

John Pidgeon (4:31)

So sounds like they have set one up.

Glen James (4:33)

Well, yeah, I don't know. What do you think of using this amount into, I'm leaving it where it is. Yeah, like they need, they probably need to get some advice, but there's just super funds.

You just don't need a self-managed superfund. Well, unless, you know, insert reason ABC here, and the reasons for a self-managed superfund. So, okay, if they were hell-bent on high-growth ETFs or VDHG or similar with their super. So they didn't want any of the top retail funds, they didn't want any of the top.