Posted on 16 June '15 by , under General News.
Self-managed super fund members should revise their strategy regularly to ensure it continues to reflect their circumstances and the fund’s investment objective. A self-managed super fund requires a clear, well-documented investment strategy to be successful. Characteristics of these SMSF investment strategies include:
– ability to pay benefits when members retire. A member must be able to maintain their standard of living when they leave the workforce.
– consider member needs and personal situations. The strategy takes on board the member’s age, their expected retirement date and identifies an appropriate investment option.
– liquidity of the fund assets. It is crucial for members to ensure they have sufficient cash to pay fund expenses.
– identifies the likely returns from investments to manage the risks associated with the investments.
– Adequate diversification of investment to help with handling the risks and returns.