superannuation investment awarenessDon’t be complacent about YOUR Super!

Where do you stand on the superannuation investment awareness scale?
Are you an actively interested participant; or a passively disinterested member?

When it comes to superannuation, it’s easy to take the ‘disinterested’ approach when you can’t access your money until you’ve stopped working.

Superannuation investment awareness matters.

But, not keeping an eye on your super is dangerous business. The financial independence you anticipate in your retirement may prove to be a little less ‘independent’ than you hoped!

A paradigm switch in superannuation investment awareness

For many years it was up to the employer to choose where and how to invest your super. Sometimes they did this by outsourcing the function to the trustee of the superannuation fund they provided for their employees. But that’s all changed. You are now able to take charge of where and how your superannuation funds are invested. That means, in most cases, it’s up to you to control your own Superannuation, so it pays to ensure you’re making decisions that are best for you. It is important that you develop superannuation investment awareness and wisdom. There are a number of aspects to this process: a number of them are included below.

Choosing the right super fund

To ensure that your superannuation fund is right for you, here are some things to consider when comparing alternatives:

Investment options – Most funds offer a range of investment options. When you’re selecting your investment style, you need to consider how much investment risk you’re prepared to take on, as well as how to generate investment growth.

Long-term performance – When comparing performance, concentrate on the long-term and remember past performance is no guarantee of future performance. A good tip is to look for a reasonable return. If it looks too good to be true, exercise some (or should that be, extreme) caution. Investment diversification is considered wise, protecting the investor from the extremes of any market sector volatility.

Fees and costs – Every fund has a product disclosure statement (PDS) that gives details of all significant fees. When comparing fees, remember to factor in any extras that may differ from fund to fund. If you’re unsure, it’s best to see a financial adviser about the matter.

Insurance cover – The level and cost of insurance is an important factor to consider when choosing a super fund. If you take out personal insurance within your super fund, your insurance premium payments can be deducted from your super contributions. With so many choices and things to consider, it’s important you speak to your financial adviser, who can work with you to find a fund with the level of choice and flexibility, and the right mix of investments to help you meet your wealth management goals.

ContinuumFP can help you with superannuation investment awareness

The experienced advisers at Continuum Financial Planners Pty Ltd have a range of strategies through which you can develop superannuation investment awareness. You can start with reading articles on our website, searching the Library under the Superannuation Strategies category. To make an appointment with one of our advisers, phone our office (on 07-34213456), or complete the Contact Us form and we’ll get back to you promptly.

[Thank you to BT for providing the original article ‘Super: out of sight, out of mind’ – 10 June 2012, on which this article is based. Originally posted in February 2013, the article has been refreshed, most recently, in May 2016]