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5 Steps To Putting Your SMSF Investment Strategy Into Action

A SMSF is one of the most popular retirement investment options in Australia. This is due to the fact that this type of fund offers great investment flexibility and no restrictions concerning it. Aside from this, SMSF offers full control over fund assets and better investment options. The greatest advantage of running a SMSF is the fact that it provides great control over investment possibilities. For example, a property investment strategy is a great option. It offers significant tax benefits and also provides the ability to invest without affecting personal funds.

SMSF Investment Strategy

SMSF investment strategy is required by law and must always be in compliance with the Australian taxation office (ATO) investment guidelines. Simply said, SMSF investment strategy is a detailed financial plan focused on the benefits of all fund members. It should be designed in a way that will increase the retirement benefits while at the same time protecting the interests of each fund member.

However, to ensure your SMSF is fruitful, it is essential to meticulously plan accurate SMSF investment strategy. But this is easier said than done. There is more to SMSF investment strategy than just deciding where to invest. It requires determination, time, knowledge, patience and strategic risk management. If you have little knowledge regarding investments and money management, it is best to hire a professional accountant to successfully put your SMSF investment strategy into action.

Listed below are 5 steps to help you put your SMSF investment strategy into action.

#1 – Check your trust deed and investment strategy – Property investment should be stated in your SMSF investment strategy as one of your authorized investment options, otherwise you will not be able to proceed with it.

#2 – Be aware of the rules – Strict rules apply to owning a property through an SMSF. Make sure you get familiar with the restrictions on purchasing a property.

#3 – Maximize tax benefits with property investment – These benefits include tax deductions, lower overall tax through negative gearing, 15 % cap on the tax on your earnings and zero capital gains tax if the property gets sold during the fund’s pension phase.

#4 – Get prepared – The main aim of the SMSF investment strategy is to increase the value of the fund. Thus, be prepared to do everything necessary in order to help make investment worthy.

#5 – Get professional help – Get a professional help to make your job easier. Just like other forms of investment, property investment entails a certain amount of risk. Professionals can help you understand the legal implications and put you in the right direction.

By following these 5 SMSF investment strategy steps you will boost your fund assets and increase the retirement benefits.