SMSF is amongst the most sought-after routes of saving in the post-retirement nest. Its ability to diversify into cash funds, ETF and real estate have helped germinate quite a bit of trustee and member interest. It has also lapped up a few government initiatives in the way. This proves beyond doubt that the SMSF market will stay. But is it going to cost us dear in the long run?
SMSF investments can pay but due diligence required
Certainly not if we are diligent with it! And why is diligence required you may ask? No investment is completely risk-proof. There is always a little bit of risk involved. Spruikers and brokers with vested interests can influence you towards a residential SMSF investment which can prove to be your undoing.
Alternately, you may have put in a lot of SMSF money in cash funds (it can be lethal at a time when interest rates are low and inflation unpredictable). There is just so much that can happen and you must engage in thorough risk-benefit analysis.
Rope in professionals
Isn’t it then important to be safe than sorry? Reason enough why I suggest you to seek advice from quality professionals. Financial advisers, tax agents or simply top-draw accountants can serve your purpose- to each his own! Tending to your own SMSF investments might be an adventure in itself but the risk-benefit analysis you get from the professionals will make this “adventure” of yours much safer.
Financial advisers can dilute your investment risk
For instance, a financial adviser can talk to you about exchange traded funds and how they can diversify your SMSF beautifully. Even when you are talking real estate for your super fund, remember to ask your broker whether he is licensed to recommend property investments through SMSF.
A lot augurs well about SMSF investments and as I said, they are here to stay. It remains to be seen whether we stay with them or fall out in the way.
You can come to us if there is any advice you require with your SMSF investments. Will be more than glad to help you.