SMSF Investment mix thoughts

Hello All,
We've just started on the SMSF route (in hindsight I should've done a little more research - but we are where we are) and we will be signing paperwork to finalize the rollover of funds..

As a bit of backgrounder, we're rolling in around ~$500K into the SMSF and we have already Investment Properties which are not part of the fund. We're looking at around ~20 years to retirement.

My initial question is what is a good starting investment mix? I'm leaning on ETF's and not really interested in bringing a property into the SMSF (unless there is a really compelling reason to do so now).

I'm a leave-it-in-there and check every now-and-then (every 6 months or so) sort of guy. So a mix of something steady, and safe, growth mix to see us into retirement. Some threads that really resonated with me were:

1. This one showing the following:
   • 25% Australian Index (Home Country bias)
   • 25% Australian Bond Index
   • 25% US Index
   • 25% World (ex US) Index
2. Another one here showing:
   
   • 50% VGS
     20% VAS/lics
     10% VAE
     10% IJR
     10% VVLU
3. And another post here showing a mix of:
   
   1. VAS, ARG/AFI/MLT/BKI,QVE, VGS, FGG

Now I understand that this is not financial advice (there's my acknowledgement ), but I'd be interested in a mix that people have done, are doing currently or would contemplate doing themselves in the current climate.

Thanks in advance!

 

s66 SISA likely prohibits most property being transferred from members to the SMSF anyway.

Each EFT and its underlying exposure and income mix needs to be considered. I would think that if you havent considered this first then a shut your eyes and buy strategy isnt particularly informed. eg what is the composite exposure ?

Its like going all in on 25% banks, 25% mining, 25% retailers and 25% cash. Or worse still 30% index, 30% banks (who will mirror index and also reflect a % of the index) etc

I would start by considering a correction strategy. If you went 100% ETF and the markets fell 30% what may you also lose ? So are leveraged, some not greatly market exposed etc.

 

If you don't want to manage it put $ 250-350k in the Lakehouse Small Companies Fund. and 100-150k in the Lakehouse Global Growth Fund. Then every month you will be emailed a newsletter on performance, strategy and report on the companies . If you find somewhere better let us know.

 

I appreciate that you have just established your SMSF.

However, if you just want to invest in ETFs and perhaps some LICs, why not just save yourself the cost, hassle and compliance burden of a SMSF, and invest through a low cost industry fund like Hostplus?

 

Instead of having an SMSF with whole heap of associated compliance costs, I would rather open an account with Australian Super. Their member direct account allows for low cost investment in a whole range of stocks, including ETFs. Check their PDS for the lists or give them a buzz.

 

As you can tell I'm new to this, and the discussion and research has been helpful.

Thank you for the feedback and I think closing it is starting to be a more real option by the day...

Thanks for the feedback. I had loosely considered the investment mix also, and was researching some investment funds for reference.

I'm attracted to this idea and was looking at AFIC, ARGO and MIR.

In the meantime, I found some information online on the HostPlus Indexed Balanced Option mix shown below and was something that I thought would be a good reference for an equivalent mix for a starting investment.


Any thoughts or comments?

Currently the paperwork is already being completed for funds to move in to the account, so unsure as to the costs involved in cancelling and 'redirecting'. I may reach out to the accountant for options.

Thanks for the info, very helpful.

 

SMSFs not as attractive as in the past. We have one but nowadays I wish we didn’t.

Personally for Super I’d choose a cheap Industry Fund such as Hostplus or Aust Super etc. Then given the legislative risk with Super also invest in a assets of your choice such as property, ETFs, LICs in own names / trust.