A lot of people have been worried about their future. The best way to secure your future is to save for your retirement. A lot of people wait for too long to start investing or they don’t take into account how unpredictable the world is and motivate for risks. How many people have seen their life savings go, in one fell swoop back in 2009, and how many more have lost their jobs, been force on early retirement or lost their businesses in 2020 alone? The numbers are staggering. One thing that has been doing well in 202 was gold and silver.
Many Australians are now waking up to the he fact that they can use their self-Managed Superannuation Fund to diversify their investment. They have looked to buy silver bullion SMSF as a way to grow their retirement funds.
Including gold and silver in your SMSF is a good because gold and silver has an inverse relationship with share markets. When stocks lose their value, the price of gold goes up and when inflation rises, gold is a great way to protect your wealth. Investing in precious metals like gold and silver ensures that there is a balance in your portfolio. Most investors depending on their risk portfolio allocate 70% to gold and 30% to silver for their precious metal’s investment. Investors will typically put a small percentage of their money in listed stocks and spread the rest to safer options.
Because gold is a safe haven investment, it tends to outperforms stock and bonds in a bad year. It also shows strong inflows of capital when people are panicking because of the state of the economy. In 2020, equities fell by 3.6% in the first quarter whilst gold delivered over 18% return in that same quarter.
When you are looking to buy silver bullion SMSF and you are planning to do all this yourself, you need to know your silver, your dealer and your storage facility. This is assuming you have already established an SMSF.
The thing is, Self-Managed Superannuation funds aren’t easy. Don’t let anyone tell you otherwise. You will need a lot of help and you will need a lot of information too.
The whole experience can be costly if you don’t know what you are doing. Buying silver bullion is one thing. You can get great deals on some bullion coins or bars from your local gold dealer, you have to make sure that you can find a safe and secure storage facility.
There is one important responsibility that will fall on you: A mandatory annual audit.
You need to appoint an auditor to audit the fund annually. The Self Managed Super fund is regulated by the Australian Tax Office (ATO), so if needs to be compliant with the regulations and be able to provide an audited report every year.
The SMSF has to pass the sole purpose test- which means that it all the actions of the fund needs to benefit all its members and remain compliant to qualify for tax concessions for SMSFs. If it cannot do that, it will have to pay a higher tax or face penalties.