SMSF investment strategy

Have you reviewed your SMSF investment strategy?

Self-managed super funds (SMSFs) are required to prepare and implement an investment strategy to help meet their investment and retirement goals.

The investment strategy is not designed to be a 'set and forget’ document but rather a strategy you continuously review to ensure you are meeting your retirement plans.

You should regularly review your strategy as markets can shift and the circumstances of your SMSF may change. Some examples of when to review your investment strategy include:

• a market correction has occurred
• a new member joins or departs the fund
• a member commences receiving a pension. This is to ensure the fund has sufficient liquid assets and cash flow to meet minimum pension payments prior to 30 June each year.

It is also worth noting that you can invest in any type of assets if they:

• are allowed by your funds trust deed
• not prohibited by super laws
• meet the sole purpose test.

Remember your SMSF auditor will check to see if you have met the investment strategy requirements under the super laws.

SMSFs are not for everyone. Flor-Hanly often uses SMSFs as part of a business owner’s holistic planning. They are used to tax effectively accumulate wealth to provide for retirement.

Read more here or call our Accountants in Mackay on 07 4963 4800.

Source: ATO