SMSF - the GenY view...

Wow, after reading the array of articles released recently, all pointing towards the dismal returns some of the largest superannuation funds have returned, I am amazed that the single most important financial investment any Australian will make (aside from their own home) is taken with such lightness.

As a Gen Y, it’s not necessarily on my mind – how well is my super fund doing, but hey, with the results that have been reported, it has certainly got my attention. (refer to SMH any Saturday and the “money” section of the Daily Telegraph).

Had I changed super funds, or better yet, changed by entire portfolio to just cash, over the past 5 years, I would have made more than all the named parties, combined – seriously!

So why is it, that yes we’ve gone through the GFC, and it’s apparent that some in the financial industry make a living of masking those high commissions and generous bonuses, yet, in 2009, we still don’t have a regimented formula to display the best and worst super funds so one, like myself, may make an informed decision as to where my mandatory 9% superannuation is deposited.

I guess, we only have two choices in this instance, take our chance and invest with a fund that provides us with their results from 12 months ago, or start the process ourselves and begin a SMSF.

What was once seen as only a facility for those with mass amounts of cash to invest in is now a form of ensuring some pen pusher isn’t retiring on your Superannuation?

So what does it mean for Gen Y and retirement??

Who knows, the current government has reduced our annual payments into Super (apparently it’s not important to invest in super??) and the fund providers are failing to report actual figures based on “today’s” market, I guess, as a Gen Y, it’s all about ME right, so, keeping with that tune, I know I’m not alone in saying, I’ll have a go, see how it pans out, and have fun making money along the way...

So after 10 years of employment and thousands of dollars paid into superannuation I can say I have around $30,000 of my total investment sitting in one account that I receive a statement for, and I’m sure as a Gen Y, I’m in the majority in saying there’s probably more, but who knows where it is?

I’ve now given myself a target of $100,000 to have in Super so my SMSF is not only less expensive and more profitable than my existing super fund per annum to operate, I can begin making money, my way, in what I believe is a good investment, I mean hey, surely, after the past 5 years performance of my fund, I can only improve MY investment portfolio through researched investing.

A SMSF just needs to have an investment strategy, it’s not all about reducing TAX, remember, some of the riches people in the world pay the most tax.

Whether you’re 25 or 55, a SMSF could be just what you’re looking for to diversify your investment portfolio for now and into the future.

wHeregroup have a number of clients now delving into this sector, and all have very different initial goals, but all the same end goal, to make money..... and that’s the most important strategy...