The initial set-up of a self-managed super fund is perhaps the simplest step in the process. Establishing a super fund that delivers superior returns from your investments is a far more difficult task to do.
To invest successfully involves determining precise goals and selecting investments that can effectively achieve those goals. One of the key advantages to an SMSF is that a portfolio can be built which reflects your short-term and long-term goals in response to fluctuations and changing market conditions.
When it comes to an SMSF, your investment options can include:
- Australian and international shares (in both listed and unlisted forms)
- Residential or commercial property
- Cash and term deposits
- Fixed income products
- Physical commodities
Before you begin investing, you need to consider what might be the best way to diversify your portfolio. How you portion your investments will depend on your funds, the market, and your goals.
Regardless of what your plan is, diversification should be a priority. Diversification of the portfolio can result in less risk to the overall investment, as the investment is split across multiple markets and can potentially produce more returns on the investments.
If you choose an SMSF over an industry or retail super fund, you may be provided with more flexibility but also far more responsibility. If you want the best performance from your SMSF, you will need to do your own research prior to investing.
Record-keeping is one of the most critical aspects of your finances that you want to get right, and never more so than when dealing with your self-managed super fund.
You want to ensure as one of your fund’s trustees that you are meeting all of the reporting obligations for your SMSF. Good and timely record-keeping can assist you in this process while maintaining your compliance with super laws.
Accurate and well-kept records will also promote good governance for your SMSF. Keeping your records up to date will ensure that you are able to provide any information required to your approved SMSF auditor or to the Australian Tax Office at short notice.
Are you concerned about how well your super is performing or thinking about getting involved in an SMSF? You can speak with us or to your super fund provider for further information and advice.