Recent months have been an important reminder that stock markets can be unpredictable. Market swings present a significant risk for SMSF retirees in pension phase who are required to draw a minimum pension each year.
This paper explains the use of a ‘bucket strategy’ whereby SMSF balances are segregated and invested differently according to the members’ individual needs. A typical example would be: an account for current spending, funds invested to generate income, and funds invested for long-term growth. It’s a strategy built for withstanding market volatility.
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