Menu
Business

Gaining control over retirement savings

Robin Bowerman, Head of Retail at Vanguard Investments Australia.
Robin Bowerman, Head of Retail at Vanguard Investments Australia.

ONE of the main reasons why many people establish a SMSF is a determination to gain more control over their retirement savings.  

There is more than strong anecdotal evidence to support this.

Past surveys by investment researcher Investment Trends, for instance, have shown that the biggest motivation for business owners to have their own SMSFs is to gain control over their super. And business owners form a sizeable part of the SMSF constituency.

The very motive for people to establish an SMSF – to be in control – also can heavily influence, of course, how the trustees invest fund assets. This point is highlighted in a feature on Exchange Traded Funds (ETFs) written by Darin Tyson-Chan in the latest issue of SMSF magazine, published by Morningstar Media.

In the piece – headed A New Gateway of Investment – Tyson-Chan writes that SMSF trustees who preferred to construct their own direct equity portfolios now have ability with ETFs to gain the benefits of managed funds – in this case, indexed funds – “while continuing to use the direct equities approach”.

Tyson-Chan makes an excellent point. It very much goes back to the control factor.

Further, ETFs provide trustees with the means to easily control widely diversified local and offshore equity portfolios. And ETFs can provide trustees with the ability to immediately rebalance their portfolios, when necessary.

“ETFs are investment instruments that allow individuals to invest in a wide variety of diversified assets through one transaction,” Tyson-Chan adds. “That is, buying one share on the ASX. The underlying asset comes in the form of a managed portfolio of stocks from investment indices around the world, such as the S&P 500.”

With ETFs, fund trustees are very much at the controls.

Listen to the audio podcast:

Robin Bowerman, Vanguard Investments Australia's Head of Retail, has more than two decades of experience in the finance industry as a writer, commentator and editor.



Love triangle twist in woodchipper murder

Detective Inspector Gary Pettiford with a picture of the woodchipper in which Bruce Saunders died last November. Picture: Josh Preston.

Love triangle twist in grisly woodchipper murder of country butcher

Planner: Widgee Engineering's survival 'in public interest'

The crowd gathered in support of Widgee Engineering today.

It is understood there was conjecture about councillors attendance

premium_icon Three men charged on separate historic sex crimes

Three men have been charged with separate historic sex offences by Towsville detectives; two of the victims in the cases were children at the time of the alleged offending.

Three historical cases of rape have come to light in Qld

Local Partners