Setting up an SMSF: it makes you create a plan

Pig, money, house

One of the good things about Self Managed Superannuation Funds is that a routine part of establishing a fund is that there has to be a written investment strategy.

In other words some element of a plan has to be established – and for many people it’s the first time they’ve actually put the thinking cap on and created a formal plan for themselves – other than perhaps for their holidays.

In developing the plan – or should we say, ‘investment strategy’ you need to determine, then nominate the type of investments you want to make and the long term objective.

It needs to show the retirement objectives and risk profiles of fund members as well as the need for liquidity within the fund.

It should also ensure that the fund remains solvent at all times and considers the role of investment diversification, as well as the insurance needs of the fund’s members. The plan is one that can be ever moving.

It can evolve as time progresses and it has to be reviewed regularly which means at least annually.

Initially, many people think that’s onerous but in time the whole concept of developing a plan becomes interesting and exciting.

It’s not uncommon to hear comments from people that they wished they’d started their planning a whole lot earlier because by failing to plan they hadn’t given themselves direction.

If you would like more information on Self-Managed Superannuation Funds, please contact our team at Ballast Superannuation Management on (08) 9417 4727 or