Masterclass – Member Risk Profile is Important

Masterclass - Member Risk Profile is Important

Masterclass – Member Risk Profile is Important

As part of the investment strategy the investment risk needs to be considered, but also risk relates to the members – what is THEIR risk profile (tolerance/general group they fall with)? All investments are a trade off of risk and return, so risk profiling may help measure a person’s willingness to take more or less risk. Often trustees believe they know how much risk they want to take and invest narrowly in one major class eg property or shares (or worst with many SMSF – cash and term deposits/fixed interest).

Considering the risk tolerance of members can be done with better than guess work. Are they like a Volvo driver (safe and conservative), or Rally Car Driver (eager for speed and adventure)?

A good free risk-profile tool can be downloaded HERE.

They suggest 6 risk profiles, similar to generally agreed groupings.

From there, trustees can invest more academically to align with member profiles.

Risk

The amounts above are %, and each column/profile totals to 100%, that is, all the monies and how much in each asset class.

What mix do you consider fits your member profiles? Or what is your preferred spread/mix?

Leave a comment and start the conversation!

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About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
This entry was posted in Masterclass Investment, Masterclass SMSF, SMSF Investing, Superannuation General and tagged , . Bookmark the permalink.

One Response to Masterclass – Member Risk Profile is Important

  1. Gay Withers says:

    Hi Guys, very interesting tool. Thank you.

    Like

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