I don’t know too many people that get excited talking about their superannuation. Let’s face it, it’s boring and not something that we need to worry about until we retire, right? Wrong.
Although you can’t head to an ATM and withdraw your super funds, it’s still your money that you will spend in the future. Most of us live busy and interrupted lives, so here’s 1 tip for you that has the power to transform your wealth in the long run.
Number 1 tip = review your investment strategy
Your superannuation is invested according to your fund’s investment strategy. That would include having investments in Australian shares, Global shares, Property, Bonds, Private Equity etc. The return you get on your super in the long run depends on how much you have in those areas and how they perform in the long run.
A small difference has a huge impact in the long term.
For example, if you have $100,000 in your super right now and you retire in 25 years’ time, and your investment strategy produces a net return of 7% per year, you’ll have $542,743 when you retire. If we change that net return figure to 8.5% per year (i.e. by changing the investment strategy right now) instead of $542,743 you’ll have $768,676. That’s an enormous difference.
Review your investment strategy. Educate yourself on how investments perform in the long run. When in doubt, seek professional financial advice from a qualified CERTIFIED FINANCIAL PLANNER®.
By Ray Ong
Contact us on 0893816811 for a complimentary consultation. Ray is a holistic, CERTIFIED FINANCIAL PLANNER® and LIFE RISK SPECIALIST® and has a Bachelor’s of Commerce in Financial Planning (with distinction). He is a member of The Financial Planning Association of Australia. We are based in Perth, Western Australia and specialise in retirement planning, wealth accumulation and wealth protection (life and disability insurance).