The Super landscape has changed considerably since compulsory superannuation was legislated in 1992. New laws introduced in 2005 saw Australian workers able to choose a super fund for their retirement savings, rather than a fund specified by their employer. Since then we’ve also seen self-managed super funds (SMSF) grow in popularity. Today, there is also a greater choice of retail and industry super funds, varied investment options, and more control than ever.
Where there once used to be limited investment options, many funds now offer a varied range that goes beyond conservative, balanced, and growth. Some even often a pseudo-SMSF option where you have control over direct investment in shares, exchange traded funds, or term deposits.
For even greater control over your investment strategy, you may wish to consider a self-managed super fund (SMSF). These aren’t for everyone so it’s best to engage a professional advisor to discuss your options.
No doubt you’ve heard the saying “Time in the market, not timing the market”. Now is the time to pay attention to your superannuation. Give your retirement savings a boost with the benefit of time.
It’s important to consider your current age, your expected retirement age, and your risk profile when making decisions regarding your super. Whether you’re 10 years from retirement or 30 years – investing time now to consider your super options, will pay off when you retire. A long-term approach enables your investment to ride out the natural cycles of the highs and lows rather than relying on hope and chance that makes markets and economies perform outstandingly well over a short period of time
We go into more detail here about why focusing on your Super now will mean huge benefits for your future.
Although diversification is widely talked about in the finance space, it isn’t generally used when discussing how many super fund accounts a person should have. By maintaining several accounts, you’re likely paying administration fees that are easily avoided.
Many funds now offer extensive diversification within their investment categories. And some even allow direct investment as we mentioned above.
Consolidating your super means you will enjoy fewer fees and less paperwork. Many super funds also offer various insurances as part of their accounts so it’s important to review your needs and eligibility before consolidating.
You should also consider any investment or tax implications when reviewing your super. Let us help you review your funds to get the best outcome for you
Investing based on your risk profile is important for peace of mind. However, it is important to know that your risk profile may change depending on your age, your personal circumstances and how long you have until retirement.
There is a wide range of investment options in super funds that reflect the different risk profiles of members. You can view fund performance and market reports and choose how you would like your retirement savings invested.
Your skilled financial adviser can explain these to you and help you better understand what it means to you. With the help of your experienced financial adviser, you can view fund performance and market reports and be in a more confident position to choose how you would like your retirement savings invested.
By taking a proactive and more educated approach to your super, your investment strategies can be better managed as your risk profile changes through your life. For example, this may mean mitigating your risk and reducing exposure to volatile markets as you get closer to retirement.
You can’t afford for your Super to be ‘set and forget’ these days. And there’s no reason to. It’s important to make sure your super is working for you. Speak to one of our super experts and find the best ways to boost your retirement savings.
This blog has been prepared by RJS Wealth Management Pty. Ltd. ABN 24 156 207 126. RJS Wealth Management Pty. Ltd. is a Corporate Authorised Representative (No. 438158) of Modoras Pty. Ltd. ABN 86 068 034 908 an Australian Financial Services and Credit Licensee (Number 233209). The information and opinions contained in this blog is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals personal circumstances have been taken into consideration for the preparation of this material. Any individual making a decision to buy, sell or hold any particular financial product should make their own assessment taking into account their own particular circumstances. The information and opinions herein do not constitute any recommendation to purchase, sell or hold any particular financial product. Modoras Pty Ltd recommends that no financial product or financial service be acquired or disposed of or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this fact sheet can change without notice. Modoras Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication.