IMPORTANT NOTE:

As Moneta Super does not hold an Australian Financial Services Licence or is an Authorised Representative of a licencee, it cannot advise on the suitability on various strategies or techniques that can be used in SMSFs.  It can inform on what is possible but not advise. The decision to use various strategies rests with trustees who must rely on their own research or consultation with their properly licenced and qualified financial planners.

Learning from Jack Sprat

Chris Heyworth  BA(Hons)  ACA

 

The rhyme featuring Jack Sprat and his lady may have originally had a deeper meaning than simply a convenient domestic arrangement.  Whatever, we may recall that “Jack Sprat could eat no fat.  His wife could eat no lean.  And so, between them both, you see, they licked the platter clean.”

Applying these principles to self-managed superannuation affairs may not seem obvious without a bit of creative thinking.  Perhaps we could say that a growth-oriented investment strategy will perfectly suit some people, and a more conservative style will be better for others.  A “one size fits all” approach might be simple but may not meet the different goals and objectives of each fund member.

For instance, younger members with many years to retirement may have different needs than older members living off their accumulated capital.  A self-managed superannuation fund can cater for these legitimate differences.

We can have multiple investment profiles and portfolio tilts within a single self-managed superannuation fund.  One fund may have members from two generations of the same family.  Younger members may be attracted by more growth-oriented assets, perhaps including property investments with some borrowings used; older members may need reliable investment income distributions and more capital stability and liquidity.

A self-managed superannuation fund can be very flexible and adaptable with its investments.  It could keep Jack, his lady, and their children happy.  Let us know if you would like to see how your self-managed superannuation fund could be used more extensively.

For further information contact Ashok on (03)98130133, email Moneta Super [email protected] or contact your financial planner (See Important Note).