My SMSF – Sandy Morgan - Switzer Report

Name: Sandy Morgan
Age: 68
Members: Wife and two children

How long have you had your SMSF?

Since about 1996

Why did you start it up?

I’ve held shares since 1965. I’m not afraid of investing and I thought ‘Why should I seek outside advice?’ Like people enjoy gardening, I enjoy investing. It’s always been a big interest in my life and then when compulsory superannuation came in, it was a chance for me to see what I could do for myself.

How big is it?

Just under $1 million. I’m in pension mode so I’m pulling down a bit now.

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

No it’s not difficult. I’ve always been involved in shares. It’s just another investment portfolio. I quite like it and I understand it. If I need any information I know where I can find it. To get my information together to do my annual accounts it probably takes eight hours

How has it performed?

In line with the market. But I’ve also got a few private equity investments.

What is your asset allocation?

The bulk of it is shares, 20% private equity and 15% property trusts. I’ll invest in some equities where the volatility is quite low so they basically take on a quasi fixed interest role. There is not really much in cash as I work on the theory that shares are liquid so if I need money, I can sell a few shares.

What are your favourite investments/stocks and why?

I basically buy the top 100. Every now and again I’ll skate out and have a go at a microcap. I keep telling myself don’t do it, but because I’ve done it all my life, I keep going for the next five bagger. They don’t turn up too often. You’ve got to dream a bit so you may as well dream with your SMSF. But micro-caps would be under 15%.

What are your long-term plans for the fund?

Frankly I’m not into to leaving a sh*tload of money to friends and family. My father basically blew all his pension so I guess it’s hereditary. We’re here for a good time, not a long time, so you may as well do the things you enjoy.

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

I’m now in the process of using SuperIQ. Unfortunately my financial adviser is myself. It’s probably not the best thing to do, but it’s my life and I can do what I like.

What investments do you have outside of superannuation?

Equity in the house.

Do you still play cricket?

I’m thinking of going to the Golden Oldies in early 2015. To do it properly, I’ve got to prepare myself a bit better.

I went to Adelaide last year without any preparation and bowled brilliantly for the first game and on the second game…I stretched a hamstring.

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.

Also in the Switzer Super Report: