When my SMSF (Self Managed Superannuation Fund) was established my advisor at the time, Heath Hill, advised me to have my funds allocated between Australian Shares that paid a dividend and cash. As I already owned property it was decided I did not need any more in my super fund. After a few years of attending seminars and
joining Investing groups I decided to have a go at managing my super fund. I would like to say it is easy but I can’t, you need to be disciplined and you need to have a financial plan for your Superfund.
Buying and selling shares is not the hard part. You can save money by setting up your own online broking account and do the trading yourself. The hard part is knowing what to buy and what allocation to have between the various asset classes. Your age plays a part in all of this as well. If you are under the age of 45 years then you have the luxury of more time to invest in property as it is considered a more long term investment. If on the other hand you are over 55 years then other things become important to you such as income, the liquidity of your assets and having low or no debt. The size of your SMSF will also determine what asset class investments are best for you as over 50% of SMSF balances are under $500,000.
Will I always do it myself? I imagine that once I get into my mid 70's I will probably just invest in funds that own a spread of the best companies. In the meantime I am still learning. I attend a Successful Investor Group that is part of my local U3A (University of the Third Age). The class has an excellent tutor, Robbie, who has been living off his investments for nearly two decades. If you want to give DIY (Do it Yourself) investing a go then you need to learn and you need to practise. Our superannuation funds will probably be the largest amount of money we have ever had to look after so the earlier you start your financial education the better investor you will become.
The Australian Investors Association (AIA) hold an annual conference at the Gold Coast, Queensland every year and is an excellent place to start your investor knowledge.