You don’t put money into your SMSF for it to sit in cash for 30 years or more. Your intention is to invest for your retirement and to get the best return you can now to ensure you have enough to live comfortably when that time comes. When you are investing your savings in your…
The initials LRBA often comes up. Would you explain the process and why it exists?
July 2016 SMSF Association Head of Policy Jordan George explains LRBA’s, the process and why it exists. https://vimeo.com/175501619
Keeping your self managed super fund on track
All super funds, including self managed super funds (SMSFs), are required to have an investment strategy to provide fund objectives and direction. This ensures the fund’s investments are directed to the sole purpose of providing benefits upon retirement for members and their dependants when they are due and payable. Under the Superannuation Industry (Supervision) Act…
How do I benchmark?
June 2016 Over any investment period, if you want to benchmark the performance of your Self-Managed Super Fund (SMSF) your-self, you need to work out 3 things: Your investment return over the period, using a TimeWeighted Return (TWR) method Your average asset allocation over the period How your return compared to other SMSFs or a…
Is it relevant to compare against retail and industry funds?
May 2016 A comparison of your SMSF investment return against retail and industry funds will answer the question “Would I have achieved a different outcome if I had invested a different way?” But it won’t answer the question “Given how I invested, did I get the return I was entitled to?” SMSFs tend to invest…
What do I benchmark against?
May 2016 If you compare the investment performance of your Self-Managed Super Fund (SMSF) to inappropriate benchmarks, you risk taking action based on incorrect information, which could have significant implications. The benchmarks typically used by SMSF investors are: The S&P ASX200 Index A listed property index The cash rate A multi-sector model portfolio The problem…
SMSF Benchmarking – What is it?
May 2016 Most successful organisations in any industry have something in common… They benchmark their performance. Benchmarking is a management tool designed to provide powerful information to key decision makers about how their current approach is working. It either gives affirmation that all is well, or an early warning that they may need to consider…
What you need to consider when preparing an investment strategy
A key reason for many individuals choosing an SMSF over other superannuation funds is to have control over their fund’s investments. However, you must balance this freedom of choice with your responsibilities as trustee to ensure that you invest within your SMSF in a manner that is prudent and in accordance with the superannuation laws.…
The Sole Purpose Test: What you need to know
You’re running an SMSF to set yourself up for retirement, right? Well, the “Sole Purpose Test” helps to keep you on track. The Sole Purpose Test is a rule that ensures your SMSF is run to deliver your retirement or death benefits. You’re probably already running your fund to provide income for yourself in retirement,…