I have questions about the Investment Strategy?
Does an SMSF need an Investment Strategy?
Yes, the covenants within section 52B of the SIS Act (super laws) requires that the trustee(s) of a SMSF to have an investment strategy. This sets out the fund’s objectives and specifies the type of investments that the fund can make.
What is an Investment Strategy?
- diversification (investing in a range of assets and asset classes)
- the liquidity of the fund’s assets (how easily they can be converted to cash to meet fund expenses)
- the fund’s ability to pay benefits (when members retire) and other costs it incurs
- the members’ needs and circumstances (for example, their age and retirement needs).
- Investment Strategy Report; and
- Trustee minute accepting and adopting the updated investment strategy
More questions, please visit our site: https://smartersmsf.com/documents/investment-strategy/#1537622235197-61900eb7-4204