You’ve gone through the effort, paperwork, and compliance hurdles to set up a Self-Managed Super Fund (SMSF). You wanted more control. More flexibility. More empowerment.
But here’s the uncomfortable truth:
The biggest risk to your SMSF might be doing nothing at all—because doing nothing can quietly cost you thousands every year.
The $20,000 Question
Imagine leaving $300,000 in your SMSF in a cash account, earning 4% per annum. After tax (15% within super), your return is just 3.4%.
Now compare that to a diversified portfolio aiming for 8% p.a., where only the income portion (say, 3%) is taxed. That equates to an approximate net return of 7.55% per annum.
The difference? Around $20,000 every year.
That’s money you could be using to retire sooner, travel more, support your children, or simply breathe easier.
The opportunity cost is real—and it compounds over time. Doing nothing isn’t neutral. It’s expensive.
Let’s walk through why this is a silent financial drain, and how you can transform your SMSF into a growth engine tailored to your life and goals.
The Power (and Cost) of Time: Understanding the Time Value of Money
Money today is worth more than the same amount tomorrow—because of its potential to grow. When you leave it sitting idle in cash, you’re giving up that potential.
Cash vs Investment: What Does 10 Years Look Like?
| Strategy | Starting Balance | Net Annual Return | Value After 10 Years |
| Cash (4% p.a. gross, taxed at 15%) | $300,000 | 3.4% | $419,000 |
| Diversified Portfolio (8% p.a. total; 3% income taxed) | $300,000 | 7.55% | $621,000 |
Key Insight:
- In super, tax applies primarily to income (like dividends), not unrealised capital gains.
- If you move your fund into the pension phase (within the cap), even the income becomes tax-free—potentially forever.
That’s a difference of over $200,000 in 10 years from a single decision.
SMSFs Give You Control—But That Comes with Responsibility
An SMSF is a powerful tool. But power without purpose is waste.
At CFV Advisory, we often meet trustees who freeze—not due to laziness, but fear. Fear of making a mistake. Fear of losing money.
But standing still often does more damage than moving carefully.
We’re here to help you move wisely.
One Size Doesn’t Fit All: The Power of Personalised Investment
No two SMSFs are alike. Your goals, values, and lifestyle are unique—and your investment strategy should reflect that.
At CFV Advisory, we:
- Run a detailed risk profile assessment
- Score your tolerance from 0 (very conservative) to 10 (high growth)
- Tailor an asset mix that balances growth with peace of mind
Whether you’re aiming to retire early, support family, or simply protect your future, we ensure your money reflects your priorities.
Fear Is Natural—But Let’s Channel It the Right Way
The headlines can be scary. Markets fluctuate. Economies shift. But waiting for “the right time” often means missing it entirely.
I’ve spent over 17 years studying and 13 years advising in this field—including earning the globally respected CFA designation. I’ve seen wealth built slowly, steadily, and smartly—not by luck, but by action.
Let fear spark a question, not freeze your progress.
Let’s Make Your SMSF Work for You
If your SMSF is sitting in cash or term deposits, it’s time to ask: What is this inaction really costing me?
Book your SMSF investment review with Victor at CFV Advisory.
We’ll help you:
- Clarify your goals
- Understand your investment profile
- Build a strategy that makes sense for you
- Implement the chosen strategies for you
Because doing nothing? That’s the most expensive strategy of all.
Any discussion in this article does not take into account your objectives, financial situation or needs. Before acting on it, you should consider whether it’s appropriate to you, in light of your objectives, financial situation or needs.