We started an SMSF, but almost lost everything. How can we recover?

October 12, 2025 — 5.01am

Eleven years ago, we got convinced to set up a self managed super fund and buy a property off the plan. We paid $600,000 for the apartment and sold it recently for $510,000. With the loan cleared, we now have $93,000 of cash sitting in our SMSF. It has been a dreadful exercise that has put us way behind in terms of our retirement. What should we do now? I am 51 and my husband is 54.

I’m sorry you’ve had that experience. Thank you for sharing it though as you might save others from the same fate. You highlight here that despite the general narrative, properties don’t always increase in value, and in my experience, this is especially likely for off-the-plan purchases.

SMSFs are not a golden ticket to a happy retirement. Instead, they’re often a lot of work for fewer gains.Credit: Simon Letch

Equally important is the lesson that pinning your entire retirement to the success of a single investment is extremely risky and unwise. And finally, SMSFs aren’t some magical savings vehicle, guaranteed to put you on the path to financial security.

Your first port of call should be to get the SMSF wound up, and roll your savings back into a normal super fund. You will be working for at least another decade, so you can afford to invest in the growth/high-growth option to maximise returns and try to achieve some catch-up.

Next, you need to get more into super. Can you afford to salary sacrifice to give it a boost?

Loading

Is there an opportunity for you and your husband to downsize in the future? If you were able to free up some equity from your home, that might give you some more retirement options. If downsizing isn’t possible, the government’s Home Equity Access Scheme might be helpful later in life to access capital without having to move.

Age pension eligibility is age 67, so unless you have other investments, you should plan to be working until then. In that time, you will be able to build your super up meaningfully, and then retire on a combination of government age pension and superannuation drawings.

You’ve been dealt a tough blow, but you do have time to recover financially and still have an enjoyable retirement. Wishing you all the best.

How often should I be looking at my super fund balance?

Loading

If you have reason to be concerned that your employer isn’t paying your superannuation contributions on time, then you would want to check regularly to make sure nothing is amiss.

Outside this scenario, once a year would probably do. In checking your balance, all you’re really doing is cheering it on. It has no impact on your ultimate retirement benefit. And as per my column last week, fiddling with our investments only harms performance, so checking less frequently helps avoid the temptation to mess things up.

When you do take a look, it would be worth checking that your level of insurance remains appropriate, as the costs for insurance climb quite rapidly with age.

My gold shares have been going gangbusters over the past 12 months. It can’t last forever. Should I be selling, or give it a few more months?

Unfortunately, my crystal ball is at the workshop for repairs. This is largely a risk appetite question.

I would have thought that if your gold holdings comprise more than 5 per cent of your portfolio, you should be selling down, as at a greater exposure than this, any price correction would be harshly felt. Also, if you need income, too much gold in a portfolio misses the brief.

Paul Benson is a certified financial planner at Guidance Financial Services. He hosts the Financial Autonomy podcast. Questions to: [email protected]

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

Most Viewed in Money

Loading