Whisky investment in SMSF

Whisky Investment for Self Managed Super Funds

Investing in whisky can be very exciting, satisfying and rewarding in monetary terms.  The trick is to firstly find the right bottles to invest in and secondly, store those bottles or barrels properly and legally. Self-managed super funds (SMSF) in particular need to know the rules.

Here are the key rules to be mindful of if your are an SMSF Trustee:

  • There can’t be any immediate benefit to members,
  • You can’t drink it until you’ve retired,
  • The whisky can’t be stored at home or a private residence,
  • It can’t be stored in the private residence of a related party,
  • It can’t be used by a related party and it has to be insured within seven days of buying it,
  • SMSF trustees need to know how to find a credible valuer.
  • The market for this kind of collectible would be small, so there would not be many buyers around,
  • When required it may take a long time to sell at the expected value,
  • Investors can be fined for any investment breaches,
  • Breaches will also be considered by the ATO when determining the fund’s complying status,
  • As with any investment, the most important thing is to ensure that Whisky Investment is part of a properly formulated investment strategy taking into consideration risk, return, diversification, liquidity and members’ needs.

www.mybottleshop.com.au specialises in rare and collectable whisky. MyBottleShop has a 1 to 10 collector rating where 10 is the most collectable rating.  Every bottle on the website is rated.  Any bottles rated 7 or higher are considered to be “investment” grade whiskies.  These whiskies will originate from Scotland, Australia, USA and Japan.

MyBottleShop also offers auction or consignment sales as well as a whisky valuation service for clients that are interested in selling their rare bottles.

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