Step 1: Assess if a SMSF is Right For You
First things first you need to take an in-depth look into your current fund. Where is your money going? What losses have you already seen? What control do you have over where your money is invested? Is it optimised to deal with the current crisis? Ask as many questions of your current circumstances as possible.
Step 2: Research the Alternatives
Should you determine that your current fund is exposed you need to find out what other options are available to you and how this can help you minimise further losses. Analyse the benefits of an SMSF or another fund. Weigh up the various investment options and look to past performance to evaluate the most risk-averse strategy available to you. Resources can be found all over the web at places like Super Guide or the Government-run Money Smart site.
Step 3: Talk to an Expert
We have put this as number three but it is never to soon to work with someone who has been through this before. Look for industry professionals who are SUPER experts, look at their track records, ask the hard questions and get all the information you can before making any moves. Setting up a well-positioned SMSF takes a great degree of expertise so you want to make sure you are working with the right people.
Step 4: Lay Out Your Plan
As soon as you have an understanding of where you stand, have done the relevant research and have professional advice you need to start laying out your plan of attack. What kind of fund is best suited to your needs and position. What kind of investments should you be looking to. What is your time frame for action?
Step 5: Implement Your Plan
Step Five is to put everything into action. You know where you stand, you know what you want and know what you need to do, now you need to take action. By this stage you should have a team you can work with and a clear action plan so it is simply a matter of taking quick, calculated action to minimise any further losses and set yourself up for success.
Remember that many fortunes have been made in times of crisis, but only by those that take appropriate action.