As a trustee of a Self Managed Super Fund (SMSF), you are required by law to prepare and implement an SMSF investment strategy for your fund and review it on an ongoing basis.

Our team of self managed superannuation specialists have years of experience helping to develop these SMSF strategies and tailoring them to your particular needs. The self managed super specialists are also qualified financial advisors and take pride in developing SMSF strategies.

An SMSF investment strategy is your plan for making, holding and realising assets to meet your investment objectives and retirement goals, taking into account each fund member and their risk preferences. The super laws require that you must review the fund’s investment strategy regularly.  In addition, there are  particular occasions when trustees may be required to review and update the SMSF investment strategy. Including but not limited to:

• Adding a new member to the fund
• Death or ill health of a member
• Pension commencement
• Risk preference change
• Specific investment opportunities
• Family split or marriage breakdown

Trustees may also set particular investment objectives for their self managed super fund, and these objectives may change as the trustees become older.

There are a variety of tips that our team would be delighted to speak with you about. Please also visit our financial planner site.

Understanding Investment Opportunities Through a Self-Managed Super Fund (SMSF)

A Self-Managed Super Fund (SMSF) offers a variety of unique investment opportunities for individuals. Unlike traditional superannuation funds, an SMSF allows you to take control of your investment decisions, providing an array of options to diversify and grow your retirement wealth.

Investment Opportunities Available for a SMSF

1. Shares: An SMSF can invest in local or international shares, providing a substantial opportunity for capital growth and dividend income.
2. Property: An SMSF can invest in both residential and commercial properties. SMSFs are also able to borrow to invest in property through Limited Recourse Borrowing Arrangements (LRBAs).
3. Managed Funds: An SMSF can invest in various types of managed funds, including exchange-traded funds (ETFs), index funds, and other managed investment schemes.
4. Bonds and Fixed Interest Investments: These are lower-risk investments that provide regular income. A SMSF can invest in government or corporate bonds.
5. Cash and Term Deposits: An SMSF can hold cash or invest in term deposits, providing a safe, low-risk investment option.
6. Cryptocurrencies: While there are certain restrictions and risks, an SMSF can invest in cryptocurrencies such as Bitcoin, subject to complying with the relevant laws and regulations.
7. Collectables and Personal Use Assets: These include artwork, jewellery, antiques, wine, coins, and more. However, stringent rules apply to these investments.
8. Physical Commodities: An SMSF can invest in commodities like gold, silver, and other precious metals, which can act as a hedge against inflation.
9. Direct Property: An SMSF can buy investment properties. However, it’s important to understand that the property must meet the ‘sole purpose test’ of providing retirement benefits.

Q: Can an SMSF invest in anything?

A: While an SMSF has a wide range of investment opportunities, there are restrictions. For example, an SMSF can’t lend to members or relatives, can’t borrow money (except under LRBA), and can’t buy assets from related parties (with some exceptions).

Q: Can an SMSF invest overseas?

A: Yes, an SMSF can invest in overseas assets such as shares, property, and managed funds. However, such investments must comply with the fund’s investment strategy and the ATO’s regulations.

Q: Can an SMSF invest in property?

A: Yes, an SMSF can invest in residential or commercial properties, but there are certain restrictions to adhere to, especially if the property is used by a fund member or related party.

Q: Can an SMSF invest in cryptocurrencies?

A: Yes, but there are specific rules and regulations that must be followed. It’s advisable to consult with a financial advisor or legal expert before venturing into such investments.

Q: Are there penalties for breaching the rules?

A: Yes, breaching the rules can lead to penalties, disqualification as a trustee, and even the fund being deemed non-compliant by the ATO, which can result in a significant tax bill.

In conclusion, an SMSF offers a diverse range of investment opportunities, but it comes with stringent regulations and requirements. Always seek professional advice before making any investment decisions in an SMSF.

Remember, the goal of your SMSF should align with your retirement objectives and risk profile. It’s advisable to maintain a diversified and balanced portfolio to weather market fluctuations and achieve long-term growth. Diversification will not only distribute your risk but also increase your chances of consistent returns.