Monday, 24 August 2015

Building a SMSF Retirement Fortress STEP #2: Build Moat & Stockade






THIS IS PART 3 OF A FOUR-PART SERIES ON HOW TO BUILD A RETIREMENT FORTRESS WITH YOUR SMSF  AND CLUE # 4 TO MY NEW BOOK OUT IN OCTOBER.

Step #2: Build Moat and Stockade


Unlike Marcus Glabrus in Spartacus who, once he had set up camp, sat back in his command tent and drank wine, once you have built the foundation of your retirement fortress by using a strong and reputable SMSF trust deed, you need to build walls and add various layers of protection. The following is a list of elements that you need to build around your SMSF fortress like protective rings of defence. By comparing traditional fortifications that were adopted in medieval times to the modern day SMSF equivalents, you will get an understanding of the various layers of additional protection you will need as you continue to build your retirement fortress.

The SMSF tools and strategies outlined are key in creating various layers of additional protection around and within your SMSF. As a bare minimum, you should implement the following:

  1.  Life Insurance Policy owned and funded by your SMSF.
  2.  A corporate trustee for your SMSF, rather than individual trustees.
  3.  An accountant who is an SMSF specialist to support and protect your SMSF.
  4.  A robust and dynamic Investment Strategy that you review at least quarterly.
  5.  A Risk Management Strategy.


I also recommend that all members of your SMSF meet on a regular basis to discuss and research the outlook for the various investments segments and markets for the next 6 to 12 months. This proactive strategy of being “forward looking” is key to ensuring that you will see well in advance most threats that are on the horizon and can take appropriate action.

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