How to manage your superannuation in volatile markets
Making sure your super investments are solid and working the best way they can is essential for a secure retirement. But what happens when markets become unstable, or your investments don’t perform how you thought they would? Take these four steps to ensure your super stays on the right track:
1. Understand your investments
Knowing what the allocation of investments are within your super is really important when it comes to managing them the best way possible. Is your super made up of cash or property investments? Are there any shares, and how much of those are in Australian, or international companies? You may be surprised at what kinds of shares your super is actually invested in, so it’s worth checking.
2. Research and consideration
Chances are you hold shares in some of the biggest companies in Australia (CBA, Woolworths or Telstra for example) and overseas (think Google, Amazon, Apple) but are these still good investments? Do the companies you hold shares in still exist? Are they still making money (and therefore paying dividends)? Chances are the answer is yes, so while the value of your shares may be down, now might not be the best time to change your investments if the companies you’re invested with are solid. Do some research before you decide.
3. Do you need to access any of the money, any time soon?
Consider whether you need access to any of the money in your super that’s held in shares or other investments. If your shares are down but you don’t need to touch them for 5 years or more – don’t worry about it – markets do recover, as long as you have quality investments. If you are looking to retire in the next 5 years, rather than changing your super investments, consider building your cash reserves by making extra contributions while you allow any assets that have depreciated to recover.
4. Get an expert opinion
If you’re still unsure about any of these steps, or unclear on how your super is set up, you should talk to an expert before making any changes. Timing the market can be a dangerous move and lead to putting yourself in an even poorer situation, so reach out to your financial adviser, or to us here at Financial Edge Group before you make any big decisions.
Check out our Facebook, Instagram and YouTube channel for even more helpful information and get in touch at info@financialedgroup.com.au If you’d like to chat in more detail about your situation.