Managing your investments
It is beneficial to understand where and how your super is invested, because you do have a choice.
Eligible employees can choose the super fund to which their employer's compulsory superannuation guarantee contributions are made. With 'choice of fund', you may no longer need to change funds when you change employers, which may reduce the amount of fees that you pay.
Investing super wisely
It’s also important to ensure your super is invested in line with your personal circumstances and objectives, including your risk profile, performance objectives, investment timeframes and any ethical investing considerations you may have. Rather than simply investing in the default fund, you can select the way your super is invested.
If your super is primarily in cash or other conservative investments, you may be missing out on higher returns that could be generated from a larger allocation to growth investments (such as shares). If you have a longer time over which to invest, you may like to consider more growth-oriented investments. Or, if you’re getting close to retirement, you might want to reduce your risk profile.
Super is a long-term investment and, in times of downturn, it's important to remember the fundamentals of investing; share markets are cyclical and eventually value will be restored. History has shown that shares have the potential to outperform all other asset classes over the long term. Although shares declined in value during the global financial crisis, it's also a time when opportunities arose. Learn about the fundamentals of investing so that you can make the most of your super investment, rather than missing out on opportunities.
Consolidate your super
Do you have more than one super account, perhaps from changing jobs over the years? Consolidating your multiple accounts could save you money in fees and charges, while a larger combined account balance may also generate a greater return.
Small super funds
If you want more control over your super and you have a balance of at least $250,000 to invest, there are two small super fund options you can consider – either a self-managed superannuation fund (SMSF) or a Small APRA Fund (or SAF). However, it's important to remember that with more control generally comes more responsibility, and self-directed super is not for everyone.
Take a look at the Bridges video for more information about SMSFs.
Getting the right advice
Superannuation is a complex world and it’s important to get the right advice. A Bridges financial planner can help you implement an investment strategy for your super that not only meets your appetite for risk, but one that will also help you achieve your long-term goals.
If you want to find out more about how to make the most of your super, take a look at the getting to know your super video and then make an appointment with a Bridges financial planner - your initial consultation is complimentary and obligation-free. Visit Bridges to find out more about Bridges and the vast range of services available, or call Silvana on 8212 6166.
How we can help you
Bridges Financial Services Pty Limited (Bridges) ABN 60 003 474 977, ASX participant, AFSL No 240837. This is general advice only and has been prepared without taking into account your particular objectives, financial situation and needs. Before making an investment decision based on this information, you should assess your own circumstances or consult a financial planner. In referring members to Bridges, Credit Union SA does not accept liability or responsibility of any act or omission or advice provided by Bridges or its authorised representatives. Bridges is part of the IOOF group.