There’s a growing number of people taking advantage of their Self-Managed Superannuation Funds. Recently, the Australian Taxation Office released statistics on SMSFs derived from annual data for 2016, which also included the type of investments the trustees chose as well as the amount of SMSF money invested in different types of asset. In the data released by ATO (SMSF supervisory levy 2013-2017), it revealed that almost 600,000 SMSFs are being run by over 1.1 million trustees that manages more than $650 billion in total assets.
Currently, there three popular investment classes for SMSF trustees: direct shares (30.3%), cash and term deposits (24.8%), and direct Australian property (54%). However, did you know that superannuation funds can also be used to invest for the future? If you have the time and expertise to devote to managing investment assets, SMSFs can provide you with a great investment to start planning for your retirement.SMSFs being placed in investment assets
The beauty of SMSFs are that trustees are given the freedom of to choose an investment that allows them to decide where and how they plan to use their money. As members’ balances rise, SMSFs being placed in investment assets are also growing in popularity, especially since growth is projected to continue for some time with an increase in new SMSFs established every year.
A great way to maximise superannuation funds while preparing for a fruitful retirement is through forex trading. Whilst it may require significant knowledge about the market to make trades, investing in foreign exchange is renowned for being one of the most profitable assets with high growth potential overtime. Trading forex becomes easy nowadays with the help of technology that allows investors to make trades even when on the go while being assisted by expert advisors. FXCM state fledgling investors can open a trading account for as little as AUD 82 (GBP 50) with extensive features at their disposal (i.e. free VPS, EA integration, etc.) that promises to enhance the trading experience.
Here are some forex trading tips that might help you in your journey:
• Set goals and choose a compatible trading style
• Select a broker who offers an appropriate trading platform
• Choose your entry and exit time frame carefully
• Focus on trading long-term and love small losses
• Perform weekend analysis
Whilst SMSFs can allow you to buy and sell forex, it won’t allow you to be full-time trader when using the funds. Instead, you should remain an investor rather than a trader. All activities done with the superannuation funds must be compliant with the Superannuation Industry Supervision Act of 1993 (SIS ACT) that regulates it, and so far, trading is yet to be included. As an investor, you can still buy and sell foreign exchange as part of your hedging strategy, but any premiums received or paid should be covered by the Capital Gains Tax. This also applies to those planning to invest in Contracts for Difference (CFDs).
At the end of the day, your investment strategy plays an important role here. Reviewing your strategy regularly will help ensure that you are still in line with your set purpose even when circumstances of funds arise. When dealing with fund members, you must include their age and risk tolerance in your investment strategy for a more seamless investment experience. You can read up on more investment strategy tips from ATO to help you in your journey. Good luck!