SMSF Investment StrategiesSharing Simple Strategies for Self Managed Super Funds
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Does your SMSF need more fixed income?
The default allocation for super funds in Australia is the “balanced portfolio” which typically has 60 per cent or more allocated to shares. However, this is not necessarily the norm for pension funds in other countries. According to the Organisation for Economic Co-operation and Development (OECD), Australian investors have the highest portfolio allocation to shares [...]
Will the bond rally last?
Looking at the chart above, it quite obvious that bonds have outperformed stocks in 2010. The S&P 500 (red line) is down 2 percent while TLT, the ETF for long-term bonds (blue line) has rallied 17 percent since the start of this year. The spectacular bond rally in recent weeks has become the hottest topic [...]
Term deposits vs treasury bonds
I would like to apologize for the lack of new posts in the past few weeks as we were away for two weeks and last week I have been busy with getting the household back in order and helping the newest member of our family (a homestay student from China) settle in. I have also [...]
Why we don’t hold bank stocks
Australian retail investors love financial stocks. Almost everyone we know who own stocks have shares in one or more of the big four banks. The most common question we get asked is “Should I buy XYZ bank shares?” especially after a stock market correction because prices appear cheap. Our answer is always the same, which [...]
A safe bear market strategy (only if you like the greeks)
In August 2009, I wrote about two strategies that SMSFs can use to profit in a falling market, which is to buy put options or to buy shares in inverse ETFs. The market has been falling for the past few weeks. Both these strategies can work well if the market continues to fall but you [...]
SMSF Investment Master Plan – new free e-book
Since posting our 4-part series of blog posts on “How to prepare an Investment Strategy for your SMSF” in July 2009, they have consistently been some of the most popular posts on this blog. Our SMSF investment strategy sample has also been downloaded/viewed by a few hundred people, which has led us to believe that [...]
International shares – which ones are outperforming?
In my humble opinion, allocating some of your funds to invest in international shares is a good idea for any SMSF. Most large super funds do offer exposure to international shares but most SMSFs prefer to hold Australian shares only. One of the favourite investments for SMSFs are “blue chip” Australian shares but when you [...]
Hybrid Securities Part 3 – Preference shares
Many thanks to Dean Greacen from SMSF Investor for today’s post. Dean will be sharing with us a series of posts on Hybrid Securities, which could be a great investment for SMSFs seeking high yield with capital growth. A preference share is a type of equity interest which has preferential rights over ordinary shares. The company’s [...]
Hybrid Securities Part 2 – Convertible notes
Many thanks to Dean Greacen from SMSF Investor for today’s post. Dean will be sharing with us a series of posts on Hybrid Securities, which could be a great investment for SMSFs seeking high yield with capital growth. Convertible Notes are debt instruments that may be converted to an equity holding at a future date. [...]
Hybrid Securities Part 1 – what are they and what are the risks?
Many thanks to Dean Greacen from SMSF Investor for today’s post. Dean will be sharing with us a series of posts on Hybrid Securities, which could be a great investment for SMSFs seeking high yield with capital growth. Hybrid securities have the characteristics of both debt and equity and the enormous growth of hybrid securities [...]
