3 SMSF goals addressed by a cash flow strategy

SMSF Technical Services Manager and Consulting Actuary, Accurium
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A key risk faced by SMSF retirees is sequencing risk as the order and timing of investment returns can have a significant impact on account balances and the ability to meet future cash flow.

This risk is attributed to the regular cash flow that must be drawn from an SMSF in pension phase, of at least the minimum pension requirement.

This means trustees face a trade-off between a long-term consideration of investing in growth assets to maximise the SMSF balance, and a short-term consideration of meeting regular cash flow requirements.

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