In super, there’s all kinds of investment options with different levels of risk. The one that’s best for you depends on a number of factors including how long you have until you retire and how comfortable you are with taking risk.
Whichever way you choose, it is important that you’re aware of how your money’s being invested as it could greatly benefit you in the long run. To help you get started, our Rest Advice team suggests these 4 tips.
1. Review your investment strategy
It’s worthwhile reviewing your investment strategy from time to time to make sure it’s working in your best interest. If you're not accessing your super for a while and you’re looking to increase your savings over time, having a strategy with growth options could benefit you.
On the flip side, if you’re looking to retire soon and will need to access your super in a few years, you may want to opt for a strategy that has greater security but still offers some growth. This helps to avoid depleting your savings too quickly.
2. Avoid making impulsive decisions
If you keep a close eye on how your investments are performing, you may be tempted to regularly change them when the market plunges or soars. As some investments perform better over a long time period however, making impulsive decisions may play to your detriment.
3. Spread your money
Have you heard the saying: Don’t put all your eggs in one basket? You may want to consider whether spreading your money between different kinds of investments is a good approach, as it may help in reducing your risk overall.
4. Seek advice
Ultimately, the best investment approach is the one that suits you personally. If you dig deeper into your personal situation, you may find that some of the assumptions applied to your investment strategy, don’t in fact relate to you. This could include your:
- Investment time frame;
- Personal circumstances;
- and end goal.
