Calculating SMSF performance

Paul, thank you for your performance article. You mention that because funds in person mode don’t pay tax you expect an additional 15% in performance. But, funds in pension mode are withdrawing funds (the pension) on a regular basis and in some cases large sums, so actual final balance $’s are a bit misleading. Should I simply adjust the balance to add the pension withdrawals back in and calculate from there?

 

A: Thanks for the feedback.

Yes, you certainly need to take into account the withdrawals you are making. Most software programmes will do this, however if you are calculating performance manually, one easy way is to add back the pension withdrawals to your end of year balance.


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