SMSF portfolios are ‘upside-down’

Key Points The average SMSF becomes riskier in pension phase It is also missing out on growth in accumulation phase The opposite strategy would get a better result IN ACCUMULATION PHASE, when contributions are being piled into super in all efforts to boost the capital available at retirement, it makes sense to concentrate on growth assets. They may be more risky but there’s a better chance of higher returns, and higher returns will compound to a higher balance. In pension phase growth assets are still worth holding, but portfolios are often weighted towards lower-risk assets, or a no-risk asset...

IN ACCUMULATION PHASE, when contributions are being piled into super in all efforts to boost the capital available at retirement, it makes sense to concentrate on growth assets. They may be more risky but there’s a better chance of higher returns, and higher returns will compound to a higher balance.

In pension phase growth assets are still worth holding, but portfolios are often weighted towards lower-risk assets, or a no-risk asset like cash.

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