What should I do if I am worried about my Investment or Super?
Your super may have been impacted by the recent increased volatility in the markets – as have the super accounts of other individuals and even large institutional investors.
1. TAKE A MORE ACTIVE INTEREST IN YOUR SUPER
Research your investment options. Talk to your financial planner to get more information on investment options and to help decide if they are right for you.
2. SEEK FINANCIAL ADVICE
Because markets and investment conditions change all the time. Even if you have a long-term investment horizon you should still keep in contact with your financial planner. Also, your needs and circumstances change over time, and some investments may not be appropriate for your goals. Your financial planner can help you make adjustments as needed.
3. PICKING A SUITABLE INVESTMENT OPTION
Most people work for 30 to 40 years and live for another 25 to 30 years after retiring. You want your super to grow and to keep pace with inflation during this time.
For this reason, a growth or balanced strategy may suit a long-term investor who won't be spending their super for more than 10 years.
A higher risk strategy may deliver higher returns, but the risk is losses in bad years. Over 30 to 40 years, it's likely that any growth strategy will lose money in at least 4 to 6 of those years. However, there are likely to be more ups than downs.
Historically, over any 20-year period, a growth or balanced strategy has given better returns than more conservative investment options. You must decide if the likely rewards are worth the risk.
