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Thursday, 28 January 2021

Our SMSF after tax returns

As previously mentioned, my target ROR for our SMSF is around 8.5% - 10.0% pa, based on the historic returns achieved by the Vanguard High Growth Fund (which we generally have all of our SMSF allocated to, except for a small cash 'float' due to receipt of contributions and provision for payments (SMSF tax payments, eSuperfund annual admin payments, and, more recently, DWs annual pension payments).

The actual annual after tax returns achieved by our SMSF are pretty much in line with that expectation:

Year    ROR (after tax)

2020    6.96% (estimated - the FY2020 tax return isn't due for lodgment for a few more months)

2019    9.17%

2018    11.59%

2017    10.42%

2016    4.03%

2015    12.15%

2014    14.92%

2013    21.54%

2012    -4.54%

2011    9.65%

The average annual return has therefore been approximately 9.59%, and the compound annual rate of return is 9.39%. So we've been doing quite well compared to our target ROR.

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