My SMSF

My SMSF – I like blue chips

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Stewart is a trustee that started his fund up less than six months ago. In the first of a fortnightly feature where we ask regular SMSF trustees about their funds, he tells us his favourite holdings and his reasons for establishing his SMSF.

Age: 63
Profession: Retired
Location: Lake Macquarie area.
Non-SMSF portfolio: Margin loan holding mainly TLS and NAB with small holdings of DJS, FXJ, PPT, WBC, ANZ with a net value of $300,000

How long have you had your SMSF?

Since about December 2012.

Why did you start it up?

Mainly for tax benefits.

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

It is very easy to manage so far. I am very happy with it. I think that SMSFs and super in general are too generous to the holders – unsustainable into the future – more tax needs to be paid.

Are you pleased with its performance?

Very pleased with the performance so far (had it for four months with a 22% capital gain plus dividends).

What is your asset allocation?

I have 100% in Australian shares (with a small amount of cash in the associated bank account). Mainly TLS and NAB, with small holdings of CBA and FXJ.

What are your favourite investments/stocks and why?

My favourite investments are TLS and NAB. I like the honesty of management. They can be trusted. I only take notice of company announcements and totally ignore any news articles, commentary, recommendations etc.

What professional assistance do you access?

We use our accountant (of 25 years), who does all the things that need to be done. He also set the SMSF up.

My wife has only just transferred her work super into the SMSF and the accountant’s firm will manage that.

We are going to see how it goes with his investment recommendations and if it does no good after a year or two we will put it into Australian shares.

If you have an interesting story to tell us about your SMSF, please contact us on subscriber@switzer.com.au.

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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