Name: Bruce Tustin
Age: 65
Other members of the SMSF: 1
Where do you live? Sydney
How long have you had your SMSF?
I’ve had it for five years now
Why did you start it up?
It was really to hold some unlisted shares in two or three companies that I had.
How big is it?
$1 million
Is it more or less difficult to manage than you thought it would be?
I use an SMSF administration service and so in terms of managing it I don’t have any difficulties. It doesn’t take much work and it just provides the right services.
What’s your asset allocation?
Currently it’s around 50% unlisted shares, 30% ETFs, 20% international ETFs and 10% cash.
I wanted to not have all of the equity exposure to Australian shares because I haven’t really needed franking credits, it’s more about having an even spread between assets.
The asset allocation will change over time as I exit some of the unlisted shares. Ultimately, it will be 100% equities/listed and some cash, but it was also 80% unlisted at one point too. Over the next year, it will move to significantly more listed.
Are you pleased with its performance?
I have been pretty happy with its performance. With unlisted vehicles, you really don’t know until you exit them what you’re going to end up with but I’d say it’s around 20% per annum on an annualised basis.
What are your favourite investments/stocks and why?
Australian ETFs because I’m not really a stock picker and I prefer to invest in the index.
I look at the market and it’s quite volatile and, typically, the market moves beyond where it eventually lands. When I see a correction in the market, I’ll buy because typically it will bounce back.
When do you plan on taking a pension?
That’s probably about three years away. I’ll just convert the fund into a pension at that stage.
What investments do you have outside of superannuation?
My family home.
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