Diversification in Self Managed Super Funds is so important to protect retirees and pre-retirees from major losses.
As a Self Managed Super Fund trustee, you need to be careful about where you invested the Self Managed Super Funds’ money. No Self Managed Super Fund should be so exposed to any one investment or asset manager that a collapse or complete lack of performance in the Self Managed Super Funds’ assets would cause major financial problems for the trustees such as the loss of the major part of the Self Managed Super Funds’ savings.
As experience shows, for example the Trio Capital collapse, there can sometimes be very little anyone can do to prevent a major collapse of a total asset class. Therefore a Self Managed Super Fund trustee, or investor, should never have hugely significant amounts invested with one fund manager or with any one investment.
If a Self Managed Super Fund trustee is recommended to invest more than 10 per cent of their total capital with any one asset manager or managed fund, then as the trustee, you should get a second opinion.
A Self Managed Super Fund can have a large amount invested in a particular asset class, such as equities, but it should not be all in one fund or in one stock.
Diversification in Self Managed Super Funds is the best protection against major losses of retirement savings.
Contact our Self Managed Super Funds Perth specialists today or call Paul Baggetta on 9317 7300.
November 15, 2017
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The information provided on this website, including the material and contents provided in the website publications, are informative in nature only and you should not act specifically on the basis of this information alone. It should not be used as a substitute for legal, business, accounting, tax, financial planning or other professional advice. If expert assistance is required, professional advice should be obtained.
Paul Baggetta is the Founder & Principal of Baggetta & Co. Paul Baggetta has been a Taxation Accountant since 1981, a Financial Planner since 1998, and in 1993 qualified as a Real Estate Licensee, holding a Triennial Certificate (currently not trading) and operated his own Real Estate business for property investment clients for over 5 years as a second business.
Financial planning services are provided by Paul Baggetta as an Authorised Representative (No. 261469) of Capstone Financial Planning Pty Ltd. ABN 24 093 733 969. Australian Financial Services License No. 223135.
Taxation & Accounting services are provided by Paul Baggetta as a Registered Tax Agent (No.61487008) and is a Member of SMSF Association, FIPA & NTAA.