Nick Garlaounis 1What's happening to my Super?
October 10th 2008 05:39
We are yet to all realise the full impact of the global credit crunch, meltdown, crisis or whatever you want to call it. The reality is that the impact this has is so under the radar and far reaching that many of us don't realise the scale or the seriousness of the issue at hand.
In particular I am referring to our superannuation policies which are at the moment losing value at a staggering rate. Most of us enjoyed substantial growth over the last five to seven years through having some of our superannuation investments in shares and property.
Given that both of these markets both locally and globally have regressed substantially the direct impact on the value of our superannuation policies is significant! Many of us rarely read our statements when they come through on a yearly or six monthly basis, this time around I strongly suggest you take a good look at your superannuation policy when it comes through.
More importantly have a look at where your fund money is being invested, many superannuation companies offer you the choice of where to invest your funds and I would at this time be looking at low yield but stable options to keep your money safe from value erosion as compared to having your entire policy sitting in international equities.
Making the right choice now means your'e less impacted over the longer term, bear in mind that when the market does return to positive territory you can again choose to switch your investment options to suit that market trend.
Generally superannuation companies allow you to change your investment options on a yearly basis so you are not locked in forever. If you have access or are currently using a financial planner then I would strongly suggest you have a chat to them about which investment startegy for your superannuation is the safest option during this volatile time.
In particular I am referring to our superannuation policies which are at the moment losing value at a staggering rate. Most of us enjoyed substantial growth over the last five to seven years through having some of our superannuation investments in shares and property.
Given that both of these markets both locally and globally have regressed substantially the direct impact on the value of our superannuation policies is significant! Many of us rarely read our statements when they come through on a yearly or six monthly basis, this time around I strongly suggest you take a good look at your superannuation policy when it comes through.
More importantly have a look at where your fund money is being invested, many superannuation companies offer you the choice of where to invest your funds and I would at this time be looking at low yield but stable options to keep your money safe from value erosion as compared to having your entire policy sitting in international equities.
Making the right choice now means your'e less impacted over the longer term, bear in mind that when the market does return to positive territory you can again choose to switch your investment options to suit that market trend.
Generally superannuation companies allow you to change your investment options on a yearly basis so you are not locked in forever. If you have access or are currently using a financial planner then I would strongly suggest you have a chat to them about which investment startegy for your superannuation is the safest option during this volatile time.
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