TOP 5 tips for choosing the right Super Fund
Financial success is easy if you have a plan to walk to….. and almost impossible without one!
Superannuation is a savings and investment vehicle with the object to provide funds for your retirement years. Although funnily enough it tends to not be at the forefront of our minds, probably because it is a life-long investment and we tend to think about the ‘shorter term’. But you need to act now! Need some help with working out what the best superannuation strategy is for you, here’s our top 5 tips to get you started.
TIP #1
Determine how actively involved you want to be with the management of your superannuation, and if you want to use managed investments through a fund manager or direct investments which you control. If you don’t want to make any decision about your superannuation fund, ensure your employer offers a ‘MySuper’ default fund.
TIP #2
Consider your current situation including your age, your financial situation, your investment time horizon, future needs and objectives and determine what you wish to achieve with your superannuation. For example, if you are nearing retirement, will you need to withdraw your benefit as a lump sum or will you convert the benefit to an income stream? Look at your existing and prospective funds asset allocation to see if they match your time frame, future needs and objectives, as well as your risk profile.
TIP #3
Compare the features and benefits the Super funds offer. Features and benefits can vary between funds so consider what you may require- such as free switching, multiple asset allocation options, online access/control, personal insurance and the availability of income streams from the fund. Don’t choose a fund just because someone you know uses it and it works for them. Everyone’s circumstances are different so only consider your own situation.
TIP #4
Compare the funds overall performance against other similar funds. The performance is effectively the (net) return of the fund and takes into account the fees or costs of running the fund as well as the returns. Set your performance expectations to consider the funds limitations and asset allocation.
TIP #5
Get QUALITY ADVICE! For most Australians, superannuation is a key element to providing for retirement and is one of the most important investments we have. Just like making any life or investment decision, you should consider all the relevant aspects and seek professional advice when applicable.
So WHERE TO FROM HERE? Consider your circumstances and your desires of what you would like to get out of your Super. Talk to an expert to work out the best superannuation strategy for you. We can teach you what the serious investors do with their super and how you can do it to suit your circumstances and desires.