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Issue 13: Revisiting the fundamentals of your SMSF investing

July 2020

As I welcome you to the start of a new financial year, above all, I trust you, your family members, friends and colleagues are all in good health.

Beyond your personal heath an important consideration for many at this time will be the health of their SMSF and its investment portfolio and I’m guessing that from this perspective it may be a very different start to this financial year from 12 months ago.

However, in what continues to be a volatile environment, it remains important to keep a watchful eye on your investments and objectives ensuring the fundamentals are in place and not to become complacent.

Back in April, our instalment discussed ‘Time to review, take stock and plan ahead’ and we talked about the end of March being a good time to review the shape of our SMSF investment portfolio post-crash, check on your projected cash flow and its ability to meet the needs of all of the fund’s members and to make a plan and to stress test that plan for a year or two ahead.

The end of June will also be an important benchmark against which to measure our position and for some, like me, it may be a pleasant surprise to find that we have fared better than expected following the strong rebound in equity markets domestically and globally and that we are doing better than our stress test plan.

However, the big question remains, ‘will the recovery continue or if it doesn’t how is my investment portfolio placed for the future?’

This instalment takes a look at some of the basics that you may care to consider.

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  • Strength indicator

Ian Irvine – Guest Contributor

Ian has been a keen investor for over 40 years and can draw on his experiences from both investing on his own behalf and also having worked in financial services for more than 30 years. Over this time, he has seen many changes that impact investors’ attitudes to in what and how they invest.

He started his career in what is now referred to as fast moving consumer goods (FMCG) or grocery, working for an Australian margarine manufacturer. In 1986, he was recruited to Westpac around the time of deregulation of the sector, where he spent 10 years before taking a role at AMP and then with ASX for 14 years up to the end of 2017. He continues to be involved with ASX; working on their educational programs.

In 1996, he and his wife established their own SMSF and again the experience and lessons learned regarding managing an SMSF over the years have provided him with many insights and ideas. He enjoys sharing these with others where these are helpful and always suggest that if an investor or SMSF trustee is unsure, that they should seek appropriate advice from a licenced professional.

Ian holds a B. Com (UNSW), and lives in Sydney and enjoys travelling to and meeting investors and SMSF trustee at the educational events with which he has involvement with from time to time.