You may have seen recent media coverage about plummeting interest rates and what that means for self-managed super funds (SMSFs).

Commentators and advisers are aware, as are you, that your assets don’t pay for your lifestyle. It’s the income from those assets that supports your plans and makes your dreams a reality.

There’s no doubt that lower interest rates mean a reduction in these income streams, presenting legitimate concerns for retirees and pre-retirees.

So, what should you do? Expose your fund to riskier investments for a higher return?  Not necessarily.

There are 2 crucial steps you need to take first:

1. Sit down with your professional adviser to review your risk profile and determine what level of risk you can and can’t tolerate

2. Ramp up your level of understanding and education. It’s imperative that you’re fully aware of the types of investments that will

a) maximise your income stream, and
b) minimise cost.

There are interesting times ahead and the importance of risk management has never been higher.

Vigilance and education are the keys to mitigating the risks to your future.
Contact us now and we can point you in the right direction to ensure your investments are where they should be.