Self-managed superannuation funds – they’re kind of like automatic windows.  Sure, they operate themselves without any real hard labour – but someone still needs to push the button to control the delicate balance between up and down.  Likewise, your SMSF needs precise and constant management.

Do you know how your self-managed super is performing?  Are you in complete control of where every cent goes?  When was the last time you thoroughly reviewed your asset allocation and investment portfolio risks?

In a rare attempt to get involved in all this, even the ATO has stepped in to guide future retirees towards wiser and more suitable investment decisions.  The tax office believes that many Aussies are not seeking enough diversity for their fund, potentially putting their retirement nest egg at significant risk.

There are 6 key SMSF investment strategy factors you should consider if you want to avoid the financial pitfalls.

1. Liquidity needs:

 At what life stage are each of the members?  This will determine whether you should be taking a more volatile or cautious approach to where and how you invest.

2. Know the risks:

 Educate yourself in areas where you feel less confident. You can then adopt a well-diversified strategy long term, rather than merely relying on what’s in your comfort zone.

 3. Asset allocation:

You should review and rebalance your asset allocation annually to coincide with future investment forecasts.

 4. Avoid sector bias:

 It’s important to understand the risk involved in heavily relying on one sector.  Take control and responsibility for your money by looking outside the box.

 5. Tax efficiency:

 Your SMSF can be majorly impacted by the amount of tax you pay on your investment.  Arm yourself with some tax know-how to get the best results.

 6. Insurance needs:

 Less than 13% of SMSF members have insurance.  Work out if you should be factoring this in to avoid any unforeseen losses.

The best news is – you are in control.   There is a whole world of investment opportunity out there at your fingertips.  You just have to know where to look and have the confidence to realign your wheels before it’s too late.

If you’d like to ask us more about how we can help you maximise your SMSF growth and avoid some of the usual outlays , get in touch today.