If you are worried that your SMSF is not reaching its potential, or you simply don’t know what your SMSF’s potential could be, then it is time you made an appointment with your financial adviser (or Supervision if you don’t have one) to talk about “The Multipliers.”
As discussed in the opening article, “The Multipliers” are:
- Increase Contributions
- Increase Investment Returns
- Reduce Expenses
There are many strategies that you can apply to get the Multiplier effect. Each Multiplier point delivers several strategies, and some strategies are a combination of two or three multipliers.
You may feel that increasing your contributions to Superannuation is unaffordable due to the strain of rising living costs (increased mortgage payments). The positive news is that contributing more to your Superannuation can result in more money in your pocket through tax savings. Untapped concessional contribution limits allow you to inject additional funds into your Superannuation.
You can then decide to use your tax savings to pay down debts or create an investment portfolio to increase wealth.
Remember that the multipliers can work in isolation, but if one of the multipliers is not working (or negatively impacting the other multiplier), it can ruin the good work that you are doing. Why contribute more to Superannuation if your rate of return is consistently poor or the cost of the investment is outrageously high?
How are you able to meet your investment return requirements if your investments are high in cash?
If you want to review your SMSF and ask more questions about the strategies behind the multiplier, then we encourage you to make a call today to book an appointment.
Your financial adviser wants to speak to you about these issues. The best time to do something was a long time ago, the second-best time is now. Your financial planner will always welcome your call.