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When you are considering doing self-managed super fund, you need to make sure that you are getting as much information as possible about it. And, this normally includes the SMSF investment strategy. This is the only way that you can be sure to get as much information as possible to ensure that your SMSF is going to be successful. These are some things that you should know about the SMSF investment strategy.

SMSF investment strategy is a requirement

Something really important that you need to know is that you need to have aninvestment strategy for your self-managed superannuation fund. This is something that you need to have, and you need to add it every year with your audits each year.

The moment that you don’t have an investment strategy, then you have the change to fail with your SMSF and that you might be operating this investment illegally.

Investing in different aspects

The first thing that you need to have in your investment strategy is the different options that you are going to invest in. The more investing you have, the better your self-managed super fund is going to be. And, this is something that is required in your strategy document.

If you don’t have this in your strategy, you might encounter problems later on. You need to show what you are planning to invest in, and you need to show that you are considering every aspect of growing your SMSF.

Personal circumstances should be included

Another thing that you need to add to the SMSF investment strategy, is the personal circumstances of everyone involved with the self-managed superannuation fund.  It is important to give all the personal details of all the members in the strategy document.

This will include the age of the person, the full names and surnames and their addresses. Everything that is important to the SMSF. The more information you add about the personal circumstances of each member, the more complete your strategy document will be. Learn more.

It should be reviewed regularly

The last tip about your self-managed super fund is that you should review your investment strategy on a regular basis. This is important that you are adjusting your SMSF investment strategy as things are changing. Things like personal information, investment options and any other change that might have an influence on your SMSF.

It is recommended that you are reviewing your SMSF every year when it is time for doing audits. Then you will know that no matter what, your investment strategy is up to date.

When you are doing your SMSF, the one thing that you need to know is that you need to have an investment strategy and that you should include it with your audits. You can get into trouble if you don’t have your strategy included and if you have changes that you didn’t add to your SMSF. Many people forget about their self-managed super fund investment strategy, and then they need to add it before their audits can be approved, and this can cause other problems as well. For more details, visit:


So your SMSF Administrator/Accountant now has to use an Independent Auditor,and suddenly you are being asked for more than just the 1 page SMSF Investment Strategy template provided by the Accountant that you used to sign without filling in the blanks and without considering its purpose.

Here are six important considerations in establishing your SMSF investment strategy.

Liquidity Needs: What life stage are each of the members in?

The members’ circumstances and life-stage will have the most important impact on your SMSF investment strategy.  If you are all 20 years out from retirement, you may choose to invest for growth and ride with the volatility of the share and property markets to benefit from the risk/return premium attributed to those sectors which are less liquid than cash and bonds.

What’s the members’ risk tolerance?

The ability of all involved to sleep comfortably at night without worrying about their investments should always be taken into consideration regardless of your age. If you or another member have no experience or confidence in certain market sectors, then short-term your investment strategy should be tailored accordingly. But you should then seek more information, education,and guidance to build your knowledge and then your confidence in those missing sectors so that you can adopt a well-diversified strategy long-term.

Asset allocation

Investing in the right asset classes is a major factor in the returns you will receive. Aussie Equities and Cash are not a full solution long-term. Cash and TD rates are currently low,and our share market had a poor year last year,and our economy is struggling while international equities, property,and infrastructure are benefiting from improving economies, low interest rates,and the dropping Aussie dollar. Your asset allocation should be reviewed annually and rebalanced to account for the returns from various asset classes and their future forecast.

Avoid sector bias

The Big 4 Banks, Woolworths and Telstra do not make a diversified portfolio! Once you have decided which asset classes to invest in, it is important to diversify within those asset classes. Frequently I see investment portfolios with a narrow range of large Australian companies just like mentioned above providing very poor diversification – and leaving the overall investment portfolio heavily reliant on the fortunes of one or two sectors.

Tax efficiency

Often the spur to look at complex and structured investments near June 30th is the tax consideration. The amount of tax you pay on investment has a major impact on your SMSF investment strategy.  Here are the tax basics for SMSFs:For example, if you were lucky enough to have bought 1000 CBA shares during the GFC at $30 and sell them now at $90 in accumulation phase you will pay $6,000 in tax with a net profit of $54,000. While if you were lucky to move in to pension phase, you receive the full $60,000 tax-free.

Insurance Needs of the Members

Trustees of SMSFs now have to consider, as part of its Investment strategy “whether the trustees of the fund should hold a contract of insurance that provides insurance cover for one or more members of the fund.”This is a significant addition to the previous provisions and has been prompted by the Super System Review panel noting that less than 13% of SMSFs have insurance.


You can seek professional advice to help with your SMSF investment strategy but remember: as trustee, you are still ultimately responsible for your fund’s investment decisions so next time you sign off a template provided by your administrator remember it is you that is responsible not them.

Setting up an investment vehicle like a SMSF to provide you with a regular source of income during your retirement can provide you with both a dependable source of money and peace of mind, but if you find yourself wishing you had a little extra money each month, or if you miss the structure and activity of having a job to work at, you might find yourself looking for part-time work to fatten up your bank account and keep you occupied. These days, one increasingly popular source of extra income is working for a ridesharing company like Lyft or Uber. Drivers for these services use smartphone apps and their own vehicles to provide transportation to customers. You've surely heard of these companies, and you may have used them, but is working for one of them a good way to earn extra money in your retirement? Here are a few questions to ask yourself before you decide.

Are You Qualified?

You'll need to make sure you have a valid driver's license with a clean traffic and criminal record. Whichever company you apply to will run a background check on you, so there's not much you can do if you have a disqualifying incident in your past. You'll also need to be above a certain age, usually 21, and have one or more years of driving experience, which shouldn't be an issue if you're a retiree!

Do You Have A Suitable Car?

You have to provide your own vehicle if you want to work as a rideshare driver, and most companies will insist that it be a four-door model of recent manufacture, which is fully insured and can pass a vehicle inspection by a mechanic. If you're driving an older or unreliable car, consider purchasing a used car that would meet the requirements as an investment in your new part-time career.

Is Your Phone Up-to-Date?

A new (or new-ish) smartphone will be required in order to run the ridesharing company's proprietary app, which will be your primary interface for receiving ride assignments and navigating to your destinations. You'll want to make sure you have an iPhone or Android phone that runs well and has reasonably current operating system software.

Will You Be Making Enough Money?

Do your homework and figure out how much time you'll be able to allocate to driving and whether or not you can expect to make enough money to make it worth your while. Most drivers can anticipate making around $10 to $20 per hour, but remember that you'll be paying for your own gas and vehicle maintenance as well. For some people, a more traditional side job might make more sense for their lifestyle and expectations.

Would You Enjoy It?

For some people, driving strangers around town, meeting new people, finding their way to new places, and helping out riders who might otherwise be stranded makes driving for a ridesharing company an exciting and rewarding job. If it sounds like something you'd have fun doing, don't forget to factor that in to your considerations!

This newsletter (INFO 206) provides a guide to Australian financial service licensees (including AFS license) and their representatives, who provide personalized advice to retail customers on self managed super fund.

This explains:

Relevant Implementation and Disclosure Obligations

  • the need for consultation on the effectiveness of SMSF - especially if the initial balance is less than $ 200,000

  • The need for advice on the cost of creating, operating and liquidating SMSF

  • The need for advice on SMSF's permanent availability for the customer.

  • It provides "compliance guidelines", indicating that ASIC is probably more attentive to our monitoring activities.

It must also help AFS licensees and their representatives comply with the obligation to provide and disclose information in sections 7.7 and 7.7A of the Corporations Act 2001 (Corporations Act).

It focuses on the costs associated with the creation, operation and removal of the self managed super fund, and must be read in Schedules 182. Cross-switching Recommendations: Compliance with Obligations (INFO 182) and an Information Sheet 205. Tips for self-managed pension funds: the disclosure of risk information (INFO 205)

The disclosure given in this information sheet must be provided to the retail customer during the consultation - usually through a SOA. However, as a best practice, AFS licensees and their representatives should also provide these revelations to retail customers personally, regardless of whether the card (or will be) specified in the SOA.

Relevant Disclosure and Disclosure Responsibilities include:

Interest and related debt obligations that require the provision of consultancy services in the provision of personal consultancy to retail customers:

  • act on behalf of the customer (section 961B)
  • provide appropriate personal advice (section 961G)
  • notify the customer if the advice is based on incomplete or inaccurate information (section 961H)
  • Customer Interest Priority (Section 961J)

SOA Requirement to Provide Retail Customers with Custom Consultancy Provision (Section 946A) - If SOA is not a personal counseling tool, SOA must provide it as soon as possible after consulting, but in any case before the customer will act on the advice of (section 946C)

Additional information that should be included in the SOA, when the board recommends replacing one product with another (switching tips) (section 947D).

Providing retail customer advice on creating and / or switching to self managed super fund will prompt you to report on the risks and costs associated with creating and / or switching to SMSF.

Below are some examples of costs that need to be considered by the consultant and disclosed to retail customers. For examples of risks that need to be considered and disclosed, see INFO .

Self managed super fund: Effectiveness Guidelines

An important consideration is whether the SMSF balance is convenient for the customer. If this is not economically viable, it is unlikely that it will be in the interest of the customer.

Initial sales of less than $ 200,000

In many cases, the recommendation for a retail customer to create a self managed superannuation fund with an initial balance of $ 200,000 or less is unlikely to be in the best interest of the customer. Costs for establishing and operating SMSF with a balance of $ 200,000. United States of America is unlikely to be competitive in comparison with the fund, governed by Australian Prudential Regulation (APRA). Therefore, the client cannot be in a better position than the use of the APRA regulated pension fund.

However, there are circumstances where an SMSF with an initial balance of less than $ 200,000 may be in the interest of the customer, for example:

  • Where the tutor is ready to take over most of the SMSF administration and manage the investments to make it cheaper or cheaper
  • Where an important resource (eg, business type or legacy) or funds for another old-age benefit account will be transferred to the fund over a short period of time (for example within a few months) after the creation of the SMSF.

There will also be a situation where SMSF with an initial balance of US $ 200,000 or higher does not meet the client's interests as it does not meet their goals, financial situation or needs. For example, a client may not have the skills, time, or experience to properly carry out the duties of a tutor.

In cases where an opinion is given on the creation of a low-level self managed superannuation fund, we expect the board to communicate clearly visit our site

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Do you have an item on your wish list or bucket list but don’t have the funds to make it happen?  It might be time to develop a plan for a short term savings goal. For any objective to become a reality there needs to be specific steps to implement to reach that goal. This is the process of putting together a short term savings plan. Follow these recommendations from the financial professionals to reach the goals on your bucket list. The debt hangover realized from pulling out a credit card for wish list items only serves to diminish the pleasure of the purchase or experience. visit us on

There are two ways to achieve a short term savings goal. Define the amount of money you’d like to save and set a date to achieve this goal. Set up a separate account in which to park the funds as you save them. This will also stave off the temptation to access them for other reasons. Break your goal down into manageable steps. Divide the number of months or weeks between now and time you wish to reach your goal by the total amount you intend to save. The result is the amount you need to set aside each week or each month.

Short Term SavingsThere are three ways to achieve this goal. Reduce your discretionary spending and earmark the savings towards your goal. Take advantage of the awesome deals offered by Groupon coupons and save big bucks on orders from Vistaprint for all your business needs. Forgo that overpriced cup of coffee each morning and daily lunches with coworkers in favoring of stashing those funds in your short term savings account. You’ll be amazed at how quickly they can add up.

Consider taking a part-time seasonal position and earmarking all of your earnings towards your short term savings goals. The combination of reduced discretionary spending and added income can accelerate your timeline for reaching your savings goals.  Follow these recommendations from the financial experts and you’ll enjoy realizing that item on your bucket list without the nagging hangover of additional debt. Best of luck to you!

More and more people are interested by the sound of a self managed superannuation fund and it’s quite easy to see why that is. Everyone wants a fair bit of money put aside for when they retire and it seems obvious they choose self managed funds. However, they are useful tools and yet many aren’t sure if they invest money into these whether they will see any sort of return. Can you actually make an investment work with a SMSF?

You Contribute a Set Amount Every So Often

For most people, they don’t understand self managed funds but in truth they are very easy to understand and use. Investors in a self managed super fund will contribute a little amount every so often, such as once a month or at a specific chosen date; and the amount increases over the years. However, the person in charge of the fund can essentially choose to use the money all investors have put in and use it for investing in property or a potential lucrative investment. When the investors reach their retirement age, the money is distributed back to them offering a tidy sum of money for the future.

You Must Be Willing To Make Your Investment Work

Super funds are only as good as the people behind them. If you miss payments or contributions and have little or no knowledge how these work then there are going to be major issues. The biggest problem for investors is that they don’t take enough time to research a self managed superannuation fund before they invest in it and that is a big problem. However, if you actually understand them and educate yourself on these matters then things can be far simpler.

Self Managed Super Funds Can Work As a Great Retirement Investment

To be honest, a super fund can be a fantastic investment, especially for retirement age. You are putting in money into basically a nest egg every so often and that allows you to build up a good retirement pot. When you reach the age of retirement the money comes back to you and while there is still an element of risk involved, it’s not too bad in terms of other investment risks out there. Investing for the future is very important and sometimes you can get a little lost as to which way to turn. However, a self managed super fund may be the ideal solution and it can work as long as you know how it works and use it wisely.

Investing Made Easy

Retiring is a very worrying time and despite their best efforts, thousands are forced to work because they haven’t enough money to see them through retirement. It’s unfortunate and happens all too often, even with good savers. The truth is the cost of living is increasing and living comfortably isn’t easy no matter where you live. That is why it’s necessary to look at investing money so that when retirement comes, there is something available. A self managed super fund is a great idea and something you can benefit from also.

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Self-Managed Superannuation Fund is indeed one of the most talked about investment opportunities by members who have got their own SMSF.

However, there are many who would also want to know about this great opportunity. And what makes them eager to know about it? It is because of the unique feature and services that would guarantee the member to get benefit for their whole life. What makes it unique? Here are the top reasons:

The Setting up for a trust Deed

A trust deed is among the most distinctive features of a Self-Managed Superannuation Fund. This trust deed is an important document that will sets out the instructions which an SMSF must agree upon, which ensures that the fund is certainly not misused. Additionally, the deed ought to agree to the legal guidelines which might be setup with the aid of superannuation laws as a whole.

This trust deed will outlines the members and of the trustees, its voting rights, as to when the fund has been started, advantages in the case of passing away, the sorts of pensions that may be paid and the allocation of the cash, mainly for investments.

The Creation of an SMSF funding process.

With a Self-Managed Superannuation Fund, you can also enhance a funding method that is tailor-made to your precise needs. Nonetheless, you'll have got to accomplish that in accordance to the guidelines which were installed for superannuation money. Through regulation, the trustee or trustees of the account must strengthen a preliminary investment strategy.

This may also be altered over time to mirror the economy and the needs of the trustee, so long as it advantages the SMSF. As soon as this method has been based, it is the duty of the trustee to carry out the plan. This approach is clearly designed to benefit the participants in order that they are financially steady when the time has to retire.see post from

The Contributions to an SMSF

As a SMSF holder, that you could have contributions made to your account from events other than your service provider. These incorporate payments into your super fund from the federal government which can fit the amount that you make a contribution to your account (should you meet their standards).

Your partner can make contributions to your SMSF and you need to use salary sacrifice to get a better tax fee to your typical revenue even as additionally contributing to your super fund.

SMSF UniqueThere are limitations that you will have to consider of, such as contribution caps. For those who do happen to exceed the cap, then you can be taxed or penalized. To hinder this, it is fundamental that you talk about these contribution limits along with your monetary guide.

If you wish to manage your retirement funds in a technique that's more tailored than a great fund manager's choices, then a self-managed super fund may be proper for you. Just remember that you are going to make decisions to spend time getting to know the market most often and retaining the SMSF's records in detail.

Self-Managed Superannuation Fund gives you complete control over how your superannuation is invested. Take manipulate and set up your own SMSF at present.

Many had noticed that there were an increase of borrowing money to buy property by means of a Self-Managed Superannuation Fund is becoming very popular and is also been a subject for most property buyers who are fascinated by learning more. This isn't surprising, given there are a developing quantity of Australians looking to take manage of their funding selections so that they are able to acquire financial freedom when they retire.

There are undoubtedly many benefits and are potential tax advantages for purchasing property by way of this constitution but there are additionally many issues and fees that need to be carefully considered before deciding if that is the right method for you. I have been very lucky to work with many investors that have applied this technique through our loan broking trade.

First of all, why spend money on Property via a SMSF?

1. There will be a larger manipulation over your superannuation property.

2. There’s attractive concessional tax constitution.

3. There will be utilization on your superannuation as a deposit to buy property

4. If the earnings and the compulsory superannuation will guarantee to cover the property payables then this method will no longer affect your personal money flow.

Things to be careful for:

1. The cost of constructing a self-managed superannuation fund and ongoing preservation of it (together with record preserving, tax lodgments and annual audits). It is better that you will get a finance pre-approval to make sure that you can do what you wish to have to do before you go to the price of establishing an SMSF.Checkout more details from

2. Extra Borrowing expenditures involved.

3. Even as there is no minimal balance required for an SMSF in case you are looking to set up an SMSF for the intent of purchasing property, you're going to must ensure that you just at the least have adequate money on your SMSF (or that you could make contributions sufficient dollars inside the contribution principles) to cover with the deposit and purchase costs of the property together with ongoing maintenance of the SMSF.

4. There are several strict prohibitions around the variety of property that you can purchase, for instance:

a. Purchasing have to be an easy and is basically available like you could not sell a certain property which already owned by you from your SMSF or Self-Managed Superannuation Fund. However, you may be in a position to if the property is commercial;click site at

b. You cannot borrow cash by way of SMSF to construct a funding property and there are strict rules concerning the level of repairs, preservation and upgrades which might be allowed, so make certain if you're buying a property and hoping so as to add worth to it through renovations that you just assess to make sure you are allowed to do what you wish to have to do before you purchase the property;

Property Investments5. You are not able to access the equity progress to purchase further residences one day;

6. Most importantly – make certain you get the proper advice upfront. There are big penalties and tax implications if you don't agree to the laws.

Self-managed superannuation fund Property investment can be a fine technique if achieved safely, but it is certainly no longer for each person. In case you are because this technique be certain you get the correct recommendation upfront!

Insurance is a principal element in every successful wealth constructing strategy and to make sure that you and your loved ones are taken care of in the event of serious sickness, accident or loss of life.
Below are some points to consider why insurance cover is so essential:

1. Types of coverage available

- Lifetime coverage can aid your household to cope financially in the event of dying.

- Complete and permanent incapacity covers a level of monetary protection for and your family if you are unable to work due to a long-term illness or serious injury.

- Serious injury cover should provide you with enough funds to meet any medical bills or different charges that may arise.

- Revenue protection cover will surely provide you for lost earnings if you are unable to work due to a health issue or injury.

2. Tax deductible. Most importantly, it is then possible to keep revenue safety insurance policies in the title of a SMSF; however, as a result of a man or woman's marginal tax charges it is most likely being greater than the 15% tax if paid into a self-managed superannuation funds.

3. Why insurance is important with property investments (and debt)

With the appearance of self-managed superannuation funds being equipped to borrow in order to invest in residential and industrial property through an installment warranty structure, there may be a need for insurance because of huge percent of the SMSFs assets being tied up in a single investment (i.e. a lack of liquidity).see page at for more information.

4. Guidelines and hints

Now we have based they ought to have right insurances - both within and outside a SMSF - we have got to be certain the insurances are capable to be held by using the SMSF.

- Trust deed

The trust deed of the SMSF needs to be reviewed to make certain that can hold each existence and TPD insurance policies on behalf of its contributors. The large majority of SMSF believe deeds presently available in the market of direction do enable coverage policies to be held - nonetheless some old deeds that are floating about do not.

- Trustee minutes & reserves

Super FundWith the aid of default, when an insurance company will pay an advantage under a life or TPD coverage, they must pay it into the individuals account inside the SMSF (i.e. the money will probably be deposited into the Self-managed super funds bank account nonetheless on paper the proceeds are allocated to the member to whom the coverage and payout associated).

Nevertheless, this is not invariably within the satisfactory pursuits of the participants.


It is very possible to self-insure in order to make sure that the instances which happens in the study does not occur. Nonetheless, self-insurance generally requires as an access to the different property or sources of income that might not be accessible to you and if you are still in the procedure of constructing wealth to fund your lifestyle and retirement.