The 4 pillars that every successful SMSF is built on
Just put your money into some sort of asset that is likely to appreciate in value over time, sit back, and watch your investment grow.
Of course, we all know that it isn’t quite that simple in practice. Not only is there the real risk of making a poor decision and watching your investment not grow - or worse, decline in value - but there are many real-world factors that can and do impact on how well an investment portfolio performs over time.
In short, investing successfully is a lot harder, takes a lot more time, and requires a great deal more knowledge than investing speculatively and hoping for the best.
When it comes to the specific type of portfolio that you would create as a self-managed super fund, there are the additional considerations of regulatory requirements, as well as something of an inflexible objective: to ensure that the trustees have as much money as possible to support their lifestyle after they finish working.
So, while there are a number of different approaches to investing, depending on the investor’s objectives, appetite for risk, capacity to actively manage their portfolio, and the resources they are willing and able to commit, we can be a bit more prescriptive about what SMSF trustees should consider.
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