There are many safe options that you can make and even some riskier ones that can be very beneficial to your self managed super fund. The most important way to keep your SMSF safe in a downward market is to listen to your financial advisor. They can help you tremendously to stay on track.
Follow The SMSF Investing Trend
Investing is very tricky, especially during a downward market. The first place to start when it comes to managing your self managed superannuation fund is to follow the trends. There have been some incredible upsets where people were sure that their stocks would continue to stay stable while in reality they dropped quite dramatically – (please provide example or reference).
Continue to review your stocks and investments on a weekly basis and you will begin to see the trends. Work closely with your financial advisor to learn their opinions, making sure you follow a positive trend.
Research Your Investment Decisions
When it comes to SMSFs, do your research. There are many investors that are rather lazy when it comes to super funds. You have to work closely with your trustees and financial advisors during hard economic times to ensure your superannuation fund continues positively on its course.
Investments need to be made through informed choices. When you make well researched decisions during bad economic times, you are normally going to see the benefits, but the wrong move can bring immediate declines throughout your portfolio.
Ignoring Excess Noise
When you make an investment decision, make sure that you are buying and selling through recommendations, not just risky decisions. During unstable economy situations, it’s possible to make hasty decisions.
It’s easy to become overwhelmed with what TV analysts are saying about stocks and portfolios, how the market is doing overall, even comments that people make to one another. Therefore, you need to eliminate this ‘noise’ in order to make sound decisions. If you cannot, it may be wise to talk with your financial advisor.