SMSF – Investment Strategy

Having an investment strategy for a Self Managed Super Fund (SMSF) is not only a legal requirement, but it also helps to grow retirement savings. An effective investment strategy should consider the age, employment, and retirement needs of members, along with the level of investment risk appropriate for them. Diversifying investments helps to spread investment risk and ensure the fund has ready access to cash. Insurance needs of all members and beneficiaries must also be considered. Regular review of the investment strategy is essential to ensure that it meets the current and future needs of members. Review should be documented, and any changes made should be recorded. Professional advice can be sought, but trustees remain ultimately responsible for investment decisions. Failing to keep records can result in penalties paid by the trustees.