Comments on: 2009 Performance of SMSFs http://blog.sli-smsf.com/2009/08/23/2009-performance-of-smsfs/ Sharing Simple Strategies for Self Managed Super Funds Mon, 09 Jan 2012 12:01:43 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Christina http://blog.sli-smsf.com/2009/08/23/2009-performance-of-smsfs/comment-page-1/#comment-46 Christina Thu, 24 Sep 2009 10:35:31 +0000 http://blog.sli-smsf.com/?p=710#comment-46 Hi Dean, I just had a quick look. I looked at instalment warrants a while ago but decided against using them for a number of reasons. I generally do not like structured products because there is always more overhead costs (interest, custodian/admin fees etc) and restrictions. I am also not so sure about their liquidity e.g. what is the secondary market like for them compared to normal stocks? An installment warrant is basically a stock with a put option to cover for the unpaid portion. The provider gives you a loan for the unpaid portion which is secured by a put option. They are probably good in strong bull market as where your capital gains and dividends exceed the cost of borrowing but if stock goes sideways or down, you cannot make money, and in fact lose money more quickly with leverage. What are your thoughts? Do you like them? Hi Dean, I just had a quick look. I looked at instalment warrants a while ago but decided against using them for a number of reasons. I generally do not like structured products because there is always more overhead costs (interest, custodian/admin fees etc) and restrictions. I am also not so sure about their liquidity e.g. what is the secondary market like for them compared to normal stocks?

An installment warrant is basically a stock with a put option to cover for the unpaid portion. The provider gives you a loan for the unpaid portion which is secured by a put option. They are probably good in strong bull market as where your capital gains and dividends exceed the cost of borrowing but if stock goes sideways or down, you cannot make money, and in fact lose money more quickly with leverage. What are your thoughts? Do you like them?

]]> By: Dean http://blog.sli-smsf.com/2009/08/23/2009-performance-of-smsfs/comment-page-1/#comment-45 Dean Thu, 24 Sep 2009 07:44:15 +0000 http://blog.sli-smsf.com/?p=710#comment-45 Sorry Christina Here is the better link with more info http://www.cleardocs.com/resources-smsf-borrowing-about.html Sorry Christina
Here is the better link with more info http://www.cleardocs.com/resources-smsf-borrowing-about.html

]]> By: Dean http://blog.sli-smsf.com/2009/08/23/2009-performance-of-smsfs/comment-page-1/#comment-44 Dean Thu, 24 Sep 2009 07:42:41 +0000 http://blog.sli-smsf.com/?p=710#comment-44 Well done on your performance Christina. I came across this presentation today on borrowing within SMSF's and thought you might be interested. http://www.slideshare.net/cleardocs/smsfs-and-borrowing Well done on your performance Christina.
I came across this presentation today on borrowing within SMSF’s and thought you might be interested.
http://www.slideshare.net/cleardocs/smsfs-and-borrowing

]]> By: Christina http://blog.sli-smsf.com/2009/08/23/2009-performance-of-smsfs/comment-page-1/#comment-37 Christina Mon, 24 Aug 2009 04:20:25 +0000 http://blog.sli-smsf.com/?p=710#comment-37 Thanks Christie! Thanks Christie!

]]> By: Christie http://blog.sli-smsf.com/2009/08/23/2009-performance-of-smsfs/comment-page-1/#comment-36 Christie Mon, 24 Aug 2009 01:50:23 +0000 http://blog.sli-smsf.com/?p=710#comment-36 Well done on your funds impressive performance for 08-09! If your super money is still with a public super fund, you might want to check this report on APRA website to see how well your fund performed and consider changing to a better performing fund if you are not happy with yours. This is such great advice that so many people never seem to get around to acting upon. It's a shame because complacency is the death knell for finances. Okay, a SMSF might not be an option for everyone but that does not mean you have to be stuck in the same unsuitable fund year after year because 'that's the one my employer uses" (or any other non-reason). If you are not happy, investigate your options and take action. Well done on your funds impressive performance for 08-09!

If your super money is still with a public super fund, you might want to check this report on APRA website to see how well your fund performed and consider changing to a better performing fund if you are not happy with yours.

This is such great advice that so many people never seem to get around to acting upon. It’s a shame because complacency is the death knell for finances.

Okay, a SMSF might not be an option for everyone but that does not mean you have to be stuck in the same unsuitable fund year after year because ‘that’s the one my employer uses” (or any other non-reason). If you are not happy, investigate your options and take action.

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