SMSF Strategies to Know

When it comes to retirement options, it’s not hard to see why the Self Managed Super Funds (SMSF) are a popular option with many employers in Australia, and it’s not hard to see why. These funds offer a variety of options to invest in while giving control of the fund to the person actually saving. For employees who work in the finance sector and understand how investing works, this often grants them the freedom they want to be able to have some control over their own investing and retirement savings destiny.

However not all strategies for taking advantage of a quality SMSF are created equal. Read on to discover 7 SMSF strategies that can make sure you’re in the best fund possible, or giving your employees the best possible funds available.

So what are these 7 SMSF strategies?

#1: Watch out for fees.

This is probably the most important piece of advice you can get as even a moderately small different in fees can result in hundreds of thousands of dollars in difference between retirement accounts when it comes time to withdraw.

#2: Consider foreign managed SMSF accounts.

Often times many of the fees come from what needs to be paid to the accountants and investment professionals running the accounts. Much lower overhead means lower fees. It’s worth a look.

#3: Compare, compare, and compare again!

The difference between a great SMSF and a very good SMSF can mean the difference between a great retirement living up to the “golden years” nickname versus just scraping to consistently get by.

#4: Look out for hidden fees.

While it’s easy to compare up front fees, you’ll also want to make sure to look for any hidden or “quiet” fees that might not be directly advertised. These can add large penalties to an SMSF account and are a very unpleasant surprise, to say the least. You want to avoid choices that result in these racking up on your account, or your savings will suffer for it.

#5: Look at past results.

As with any funds you’re going back and forth on, it’s important to to make sure you know how various investment options have performed in recent years, and how they have performed over the long-term. The truth is that while past results certainly aren’t perfect when compared with future predictions, if one investment option has a poor track record or a long history of under performing, then that is definitely worth taking into consideration.

This also goes back to one of the most basic rules of investing: do your homework. You need to know your stuff before you put your money up for risk.

#6: Don’t overestimate your skills.

This is the hardest one for most people to admit, especially since most SMSF investors are in the finance or investment world and feel like they should be able to manage every single aspect of their money, including investment.

The problem is, not every area of finance or money is the same. Just because you’re great in one area doesn’t mean you’ll be any good at another. Even Tiger Woods has a swing coach, and even the world’s highest paid motivational speakers have speaking coaches. If you’re not getting the results you want, make sure you’re not overestimating your abilities.

#7: Understand your responsibilities.

An SMSF fund has its own specific requirements and responsibilities, and you need to make sure you understand them. You’re personally responsible for any fees due to transactions and trades in these accounts, as well as making sure you have your own separate insurance and the time needed to manage a fund like this successfully. While you have the additional freedom, that also leads to more responsibility, as well.

In Conclusion
Those are 7 SMSF strategies that will help you make sure you get the absolute most out of every single one of your SMSF accounts. There are many reasons to like what these accounts have to offer, but you need to go in with a realistic expectation of how these funds work and what you can do to make sure everything runs smoothly.

Hopefully you find this information useful and visit back soon for more great tips you can use!