The year of 2020 has made many people uneasy – handshakes and free-flowing international travel have ceased (for now) and worldwide economies have stalled, stagnated and some have experienced never before seen lows.
Consumer confidence is down, as is the uncertainty of long-term investments and super funds. Do you know where your super is invested or how to bring yours up?
Read more from Crest Wealth, trusted financial planners, about super funds amidst market volatility. We’re here to help you understand, gain hope and confidence.
First job super to nearing retirement super
Change is all but guaranteed throughout our lives. How we invest now, and the opportunity to change our super investment options (even during market volatility), could make a real difference to our retirement funds.
Here’s some examples of lifecycle change in the financial sense:
- Inflation rates go up every year (sadly, not down),
- Pay rates increase as inflation increases (well, they’re supposed to anyway),
- Saving goals evolve from purchasing a first car, to first home, holidays and more, and
- Financial and investing education hopefully grows with us as we age.
Essentially, where you invest your super in with your first job(s), may not suit, benefit or be the best approach for you when you’re nearing retirement.
Why? Mainly because you didn’t think too much or care about investment options, because the feeling of new-found financial independence and pay checks were all we cared about.
But now you’re older and interested in financial planning for your future.
Let’s explore super fund investment options with a team of financial planners at Crest Wealth.
Understanding super funds and investment options
Generally, 9.5% of before-tax salary (or more, if eligible) is paid by your employer into a super fund.
It’s often referred to as a pension plan and your super fund will work to invest this money over the course of your working life, with the aim of a comfortable retirement for you. You earned it!
- Not sure what your super fund invests in?
Contact your super fund, log in or research the company to find out.
- Want to generate higher returns?
Ask us for help. We can discuss your risk levels and help you find the right investments options for you and your retirement fund.
Here’s some investment choices available:
Typically, long-term higher returns, yet notable losses are very possible in volatile markets.
Can provide slightly lower returns than the growth option but is in favour of reducing potential losses in a market downturn.
Remember also, for asset allocation, not all balanced funds are equal. You may assume it’s 50/50, but some balances might include 70 or even 80% in risky assets.
Aims to provide modest growth potential in favour of greatly reducing chance and degree of losses in a market downturn. Largely, aims to reduce risk and therefore generate lower returns in market volatility.
Aims for stable returns that safeguard the money you have accumulated.
Understanding your financial goals, your retirement plan and the risks (or lack thereof) you are willing to take with super in a fluctuating market is your first step to finding a super that’s right for you.
Consulting with a Gold Coast financial planner is the next step.
Smartly Invest with Crest Wealth
Crest Wealth is a boutique firm of experienced financial planners who work with clients to grow and protect their personal assets and wealth on the Gold Coast and throughout Australia.
Need help with your superannuation fund options?
Our Gold Coast financial planning services provide advice across all aspects of wealth management, superannuation and SMSF, personal insurance and retirement planning.
Contact us today for financial planning you can count on now and into the future.
Disclaimer: The information contained in this blog post is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.