I had no idea where my lost super was or the names of the funds. I just new it was scattered everywhere and I should definitely have more than $3,000 in my super. Australian Super Finder found all 7 of my funds and now my balance is almost $50,000. Thank you so much for getting my super back on track. ? Leonie, Thomastown VIC

Super Investment Options

Is it time to check your superannuation investments?

Loads of things can occur between the day you commence your first work and the day you retire. From building your career, purchasing a house, and raising kids to handle setbacks like divorce or redundancy, life does not stand still, and not your investments either. In all possibility, the investment decision you made when you were 25 years old could no longer be right at age 55 or 65. Or you couldn’t have made a dynamic choice, choosing the default option of your fund instead.

In most instances, this default option is a “balanced” portfolio of conservative and growth assets. The combination of investments is selected by the manager of the super fund to match the average member who could be anywhere between 18 and 65 years old. The issue with this method is that each of us have a tad different enthusiasm for risk and various financial circumstances. What is more? These things aren’t determined, but do alter as you advance through life.

Check the menu

To ensure your superannuation suits your present needs, begin by looking into how your money is spent and compare this with everything else on the super fund’s menu.

All funds have various investment choices for you to pick. These depend on the type of assets they are holding. Your decision will vary according to the level of risk you’re eager to take as well as the return you could expect to make ultimately. Most funds today offer an “a la carte menu” of individual asset options like Australian shares, sustainable shares, international shares, fixed and property interest, which you may combine and suit your wants.

On the other hand, you can select from a variety of ready-mixed choices to suit various risk profiles. Some funds utilize different labels, however according to MoneySmart, there are four broad types:
• Growth options usually hold around 85 per cent of the funds in property and shares with fixed-interest investments and the balance in cash. High-growth options can have around 100% in property and shares. Average returns become higher in the long term --- usually a couple of percentage points above the inflation --- however, the ride could be even bumpier along the way. Losses have a tendency to be higher in very bad years, expecting a loss in 4 or 5 years per 20.
• Conservative options usually have around 70 percent in low-risk cash, low growth, as well as fixed interest along with the balance in property and shares. Average returns are typically lower than the growth options over time, but there’s less risk of annual loss.
• Cash invests in deposits that are short-term with Australian organizations which provide fairly low and stable returns as well as no loss risk. The only risk is that the returns will not keep pace with the rise.
• Default or balanced, option will perhaps hold anywhere from 60 to 75% of its savings in property and shares with the remaining in cash, fixed interest, and bonds. Average returns ultimately will be a tad less than growth option, however, higher than cash and conservative options.

You can check more on super investments at www.australiansuperfinder.com.au

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