Ditch the self-man­aged su­per fund

Rob is re­luc­tant to in­vest, so he must ...

Money Magazine Australia - - ASK PAUL -

QWe have an SMSF and have been re­luc­tant to in­vest in the stock­mar­ket. We ac­tu­ally don’t know how to get started in in­vest­ing. Are there sim­ple guidelines to fol­low and what per­cent­age of funds would you sug­gest to in­vest?

Good­ness, Rob, what on earth are you do­ing with an SMSF? It seems to me you must be hold­ing cash in­vest­ments, earn­ing lit­tle in­ter­est and pay­ing big fees to run your fund!

The whole idea of a self-man­aged su­per fund is to self-man­age your in­vest­ments. As you are not con­fi­dent to in­vest in key as­sets for a su­per fund, such as shares, my an­swer would be for you to use a man­aged su­per fund. But then you pay man­ager fees and your SMSF ac­count­ing, lodge­ment and au­dit fees, ba­si­cally dou­bling up.

You could eas­ily do a course through the stock ex­change and you may find that a lot of fun. Equally, you could go to an on­line com­pany and go over its free in­for­ma­tion, sub­scribe for re­search or use its low-cost share in­vest­ment funds.

But I think you should con­sider clos­ing your SMSF and rolling the funds into a low-cost su­per fund where the man­ager does all the work for you. A cou­ple of op­tions, among many, would be Host­plus and Aus­tralian Su­per. If you go this way, take ad­vice to make sure you do the switch cor­rectly.

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