Growing your Self Managed Superannuation Fund (SMSF) and the rate at which it grows depends on how much you contribute to your fund each year and the type of investments you purchase within your fund.
There are 2 types of contributions you can make to your SMSF each year;
- Concessional contributions
- Non-concessional contributions
To put this into plain english “concessional” contributions are those which you or your employer are entitled to receive a tax deduction, whereas a “non-concessional” contribution is one you are not able to claim a tax deduction for. There are limits on the amount of concessional and non-concessional contributions you can make each year so it is important that you discuss this with us.
The type of investments within your fund are typically broken down into the following assets:
- Managed Funds
- Precious metals (such as gold and silver)
Under strict conditions you may also able to invest in less traditional items such as wine, artwork, coins and jewellery… but extreme caution is required.
So what should you invest in?
This is just one of the many questions put to us by our SMSF members… but as accountants we are unable to give this advice.
Welcome the financial planner.
A financial planner will assess your risk preference and your knowledge (or more so your level of comfort) on various investment options.
A “good” financial planner will also take into account your current age, years to retirement, your health, how old your children are, whether they will go to a public school or private school… and much more, before deciding what you should invest in.
We source the best financial planners for our clients that can give you this advice and we will put you in touch with them if required.