Strategy trounces cryptocurrency hype

Bitcoin symbol.

An SMSF expert has warned funds about the allure of bitcoin over a long-term SMSF strategy.

The right SMSF strategy can add up to a sizeable financial difference and should not be disregarded for the allure of bitcoin returns and other cryptocurrencies, an SMSF expert has warned.

“Bitcoin fascinated me as it was the world’s first international currency not regulated by any sovereign government and sure you can put your SMSF money in bitcoin, but would you?” I Love SMSF chief executive Grant Abbott said.

“I have learnt over my lifetime, sometimes the hard way, that I can’t pick investment markets and certainly not investments that will go up and make me rich quick, if there are any.

“The beauty about SMSF investing is that it is very long term, which means good old-fashioned investments over a long time seems a good investment to me.

“But all investments have their ups and downs. Not strategy.”

Abbott said he believed tax strategies and the overall SMSF strategy were the real factors underpinning a robust SMSF.

“Look at how many SMSF million-dollar funds there are – is that all from good investment?” he said.

“In part, yes, but we all know it is from the significant tax concessions given to SMSFs, and the bigger the fund, the more gross-dollar-value tax concessions available, with the right strategy.”

He noted in the long term a simple SMSF tax strategy can add up to a sizeable difference over other strategies when factoring in living costs and age pension entitlements and strategies.

“One thing is guaranteed: the government is not stopping SMSFs from accessing refundable franking credits nor pension tax exemption for members over age 60 or pension tax exemption for account-based pension members with $500,000 pension accounts,” he said.

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