SMSF trustees should avoid hasty decisions post US poll
Self-managed superannuation funds (SMSF) trustees have been advised to ignore market uncertainty caused by the US presidential election and avoid making any hasty decisions as superannuation is for the long-term and short-term decisions ‘can do more harm than good', according to the SMSF Association.
Chief executive and managing director, Andrea Slattery, stressed that when it came to superannuation, trustees should stay focused on their long-term investment strategy, described as "your best friend to guide your fund through uncertain times — such as the ones we could face post the US election".
They should also concentrate on diversifying SMSF assets, she said.
They were also advised to discuss their investment strategy with SMSF professionals in the wake of the US election but, at the same time, they should avoid any hasty decisions.
"In the short-term, the US election result, particularly if the Republican candidate, Donald Trump, is elected, is likely to increase market uncertainty and that may have a negative impact on the value of trustees' SMSF portfolios," she said.
"But over the longer-term, it will be much more difficult to predict how either a Trump or Hillary Clinton presidency will affect economies and shape financial markets around the globe, which is why it is critical trustees adhere to their long-term investment strategies and don't have a kneejerk reaction to the election.
"Diversification of your retirement savings across different assets and regions is a key in protecting your fund from volatile financial markets over the long-term."
Slattery also pointed to the post-Brexit market volatility and said that although the decision had had a momentous impact on the financial markets across the globe, post Brexit markets finally settled down while economists began to see the positives in the decision.
AUTHOR
Oksana Patron
Recommended for you
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
