Most DIY super investors are in stocks for the long-term, so we have the benefit of using history to help us determine a proven investment strategy.
When it comes to investing, especially in a self-managed super fund (SMSF), you need to have an investment strategy you can stick to. For me that meant that across 2008 and 2009 I stuck to my strategy of buying great quality companies that paid dividends, which meant that I dollar-cost averaged the holding price of many of my stocks; this is exactly what I will do going forward.
I know there will be some dud days, weeks and months, but history is on my side.
History shows that seven out of every 10 years are good for stocks and we are now giving history a nudge as we move into the fourth year since the global financial crisis (GFC) started in October 2007. Of course, the 2009/10 and 2010/11 financial years have seen shares actually rise between 5-6%, and when you add in dividends, a good portfolio with a bias towards income would have returned 10-12%.
There are plenty more reasons as to why history is on our side and I and my team of financial experts talk about those, as well as other SMSF investment strategies, every week in the Switzer Super Report.
We cover everything from stock buys, sells and holds, fixed interest investments, alternative assets such as property and artwork, tax optimisation strategies, super law compliance issues, and SMSF product road tests.
If you’re interested in receiving the latest investment advice for SMSF trustees, sign up for a no obligation 21-day free trial of the Switzer Super Report.
The Switzer Super Report will be sent to your email inbox twice a week and will include expert analysis and opinion from some of Australia’s leading financial minds. These include Charlie Aitken, George Boubouras, Paul Rickard, Tony Negline, Rudi Filapek-Vandyck, Andrew Bloore, Jo Heighway, Professor Ron Bewley and others.
Important information: 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. Anyone should, before acting, consider the appropriateness of the information in regards to their objectives, financial situation and needs and, if necessary, seek professional advice.
