My SMSF – Maureen Jordan Switzer

Name: Maureen Jordan Switzer
Age: Forever young (I’m a Baby Boomer)
Other members of your SMSF: My husband, Peter (Switzer) and our two sons.

How long have you had your SMSF?

We started it about 10 years ago when our sons joined us in our business.

Why did you start it up?

We were unhappy with the charges and the performance of retail super funds, and we could see enormous advantages in being in control of our investments. Clearly, super is a very tax-effective way to gain exposure to the stock market, and an SMSF gave us an opportunity to give us the asset mix in our portfolio that suited both our appetite for risk and what we prefer to invest in to build wealth. We were also intending to offer the same solutions for the right clients who came to our financial planning business. And we thought it was a great way to get our two sons more involved in a critically important wealth generation issue all young people need to be engaged with.

How big is it?

It is a significant amount of money designed to give my husband and I sufficient cash drawings when we eventually decide to retire, which is some time off at this stage. From the point of view of our sons, the SMSF will be a fantastic vehicle for them when they retire and as parents it is very comforting to know that there will be a wonderful legacy left for your children of which they have also had a part in building.

Is it more or less difficult to manage than you thought it would be?

Given our background in the finance industry, we were aware of the obligations – especially administrative ones – and so we put in place a system that ensures the necessary work is completed according to the rules. As a group, we love the investing side, because we understand the companies and other assets we invest in, and so all we needed to do was to create an efficient system to make sure all the I’s were dotted and the T’s were crossed. It adds to costs, but they are tax deductible inside the fund, and it means we can concentrate on making money for the fund.

Are you glad you have it?

Definitely, as it has meant that we have bought great companies we like when share prices were low and conventional fund managers might have played it cautiously as they are publicly accountable. From early 2009, Peter was publicly advising that stocks would make a comeback and so we put our money where Peter’s mouth was, so to speak!

Are you pleased with its performance?

The performance has been solid with our returns beating the index on a 1, 3 and 5-year basis. That’s not surprising, as we have had a ‘buy the dips’ strategy.

What is your asset allocation?

Since 2009 we have been fully invested in stocks, as we have a high-risk profile and we don’t intend to retire for some time. We were invested in Aussie stocks as we did not want to have a currency hedge issue and we like to invest in great companies selling at attractive prices, which also offer good dividends and franking credits. We keep cash of course for when buying opportunities arise, such as we are seeing right now.

What are your favourite investments/stocks and why?

We play stocks through our SMSF but have three investment propertiess we have held for some time outside of our SMSF. And of course we have our family home. They have all been great investments, once again bought in great areas where there is good capital gain and they were bought quite a few years ago during challenging times for the real estate market.

What investments do you have outside of superannuation?

We were always big fans of property, as the answer above shows, but as we became more mature we started to recognise the value of investing in great companies, which pay solid dividends. We still like property at the right price and the next one will probably be bought inside our SMSF. We’ve also built up a number of businesses with a considerable workforce. One of these is Switzer Financial Services, and Paul (Rickard) is our partner in this business. These businesses have substantial value but have required a lot of investment of owners’ capital to get them to where they are today. That said, we have great delight in investing in our family and staff and seeing great returns!

Do you use an advisor or any kind of service provider?

Yes – three! Peter, my son Marty and myself as well are all advisers! Though it’s our other son, Alex, whose opinion we definitely listen to as well.

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.

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