Are you looking to maximise the potential of your Self-Managed Super Fund (SMSF) investments? Creating a strong investment strategy tailored to your specific circumstances is key. Here, we reveal what you need to include to create a solid investment strategy for your SMSF.
Tailored and Written Strategy
Start by ensuring your investment strategy is documented in writing. It should be personalised to your SMSF's unique situation rather than a generic reiteration of legislation.
Consider Personal Circumstances
Take into account factors such as the age, employment status, and retirement needs of each member. These elements influence the level of investment risk your SMSF can comfortably undertake.
Alignment with Retirement Objectives
A strong investment strategy should clearly outline how your investments will align with the retirement objectives of each member. It's crucial to map out how your investment choices will contribute to achieving these goals.
Specific Regulatory Factors
Adhere to super laws by considering specific factors such as:
- Risks involved in asset acquisition, holding, and disposal.
- Diversification of investments across various asset classes.
- Liquidity of assets to meet fund expenses and obligations.
- Ability to pay benefits to members and cover associated costs.
- Consideration of insurance coverage for members.
Articulated Investment Approach
Merely specifying broad investment ranges isn't enough. Your strategy should articulate how you plan to invest your super and why these choices are essential for achieving your retirement goals.
Allocation of Assets
Clearly define the percentage or dollar allocation of your SMSF's assets across different investment classes. This allocation should be a reflection of your articulated investment approach and support your retirement objectives.
Justification for Asset Selection
If you opt not to use specific allocations, ensure that material assets are listed in your strategy with clear reasons explaining how they contribute to your retirement goals.
Securing Your Retirement Years
Crafting a comprehensive investment strategy for your SMSF goes beyond compliance – it's about ensuring the financial security and prosperity of your retirement years. By considering these key elements and tailoring your strategy accordingly, you can set your SMSF on the path to success. Contact a friendly Expert today for support.