Is Your Investment Strategy Running You Into The Ground?
Your investment strategy for a Self-Managed Superannuation Fund (SMSF) is not just a one-time plan but a dynamic document that needs regular attention and adjustments. Here’s why regular reviews are essential:
Importance of Regular Reviews
An SMSF's investment strategy outlines how funds are invested to achieve retirement goals for its members.
To ensure it remains effective and aligned with changing circumstances, it should be reviewed at least annually.
This ensures it continues to meet both current and future financial needs, considering factors like market conditions, member demographics, and regulatory changes.
Key Events Triggering Reviews
Several events should prompt a review of your SMSF's investment strategy:
- Market Corrections: Significant market downturns can impact investment performance and risk profiles, necessitating adjustments to maintain portfolio resilience.
- Membership Changes: Whenever a new member joins or departs the fund, their individual risk tolerance and investment horizon may influence the overall strategy.
- Pension Commencement: When a member starts receiving a pension, it's crucial to ensure the fund has sufficient liquidity to meet mandatory minimum payments.
Documentation and Compliance
Documenting these reviews and any decisions made is critical for compliance and transparency. This can be incorporated into annual trustee meetings or recorded separately as part of your SMSF management practices.
Providing these records to auditors demonstrates that your strategy is actively managed and adapted as necessary.
Incorporating Property Investment with Supavest
When reviewing your SMSF's investment strategy, consider the potential benefits of property investment through platforms like Supavest. Property can offer diversification, rental income, and long-term capital appreciation.
Begin your journey today by getting in touch with the team!
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