The world is experiencing an unprecedented global event with the very real chance of an economic recession. It is important that as an engaged SMSF trustee, you understand the implications of the economic activity and ensure you have appropriate plans for your retirement.
So how can you ensure your SMSF is best placed amid the COVID-19 outbreak, and at times of uncertainty?
- Seek specialist advice
Now is not the time to panic but to seek considered Specialist SMSF advice for your superannuation and retirement assets.
With the economic and market fallout resulting from the global coronavirus outbreak, now is more important than ever to seek Specialist SMSF advice.
When global investment markets are turbulent, trustees who have established a strong relationship with their specialist SMSF adviser are well positioned to make good decisions about their portfolios.
- Consider your risk profile, objectives of your investments and your timeframe to retirement
It is always important to regularly review your investment strategy.
During times of economic instability this is even more important. You should consider your tolerance to risk, how long you have until retirement and if your investments are appropriate for your risk tolerance and retirement plans.
Typically, as individuals approach retirement they move to less risky assets to facilitate a smoother consumption of retirement assets.
- Ensure that you have considered diversification and liquidity of your assets
Along with considering the factors above, it is also important that you consider diversification and the liquidity of your assets.
Diversification can be an important factor in preparing your superannuation assets for economic instability.
- Keep up to date with relevant health and economic updates
Staying on top of the news (via reputable sources) will be essential to ensure you stay engaged with not only your health during this time, but your continued engagement with your superannuation. We will also aim to keep you as up to date as possible.
The vast majority of SMSFs survived the Global Financial Crisis (GFC), and many of them did so because of the sound advice they received post 2008. The events of 2020 will require the same wise counsel.
The SMSF Association is actively monitoring the current economic uncertainty resulting from COVID-19 as a priority.
The SMSF Association will continue to represent any concerns to the Government as appropriate, as well as advising of any changes as we actively monitor the situation. This includes the opportunity for types of relief for SMSF members.
It is during this time of unrest and unease that it is important to remain empathetic, supportive of our community and each other.
To stay up to date with the latest information regarding your SMSF, click here.
If you are currently unadvised, use our Find a Specialist directory to find an accredited SMSF Specialist in your area.