Want to grow your super but not sure how? It could be worthwhile seeking professional advice tailored to your specific circumstances.
Find out how to boost your super by asking your financial adviser 4 key questions:
1. How much am I paying in super fees – and how do they compare to other funds?
According to Rice Warner research commissioned by ING DIRECT (2015), super fees can range from 0% to about 2.33% per annum. These figures may not sound like much but over time the impact of fees can really stack up. The same research found a 30-year old male using a fund charging 0% fees could retire with super worth around $511,000 compared to about $319,000 in a fund charging annual fees of 2.33% (assumes equal investment returns).
Check your latest super statement to find out how much you are paying in fees, and ask your financial adviser how this compares to other funds.
2. How is my current super fund performing compared to other options available to me?
No one, not even the experts, can consistently pick each year’s winning investments, so the returns earned by your fund may fluctuate from year to year. That said, if your super is delivering consistently low returns then it could pay to seek better value for money.
Find out from your financial adviser how your fund stacks up against others – and whether you may potentially be able to get a better return on your investment elsewhere.
3. How do I maximise the value of my super portfolio?
Your investment decisions may change over time, depending on your risk profile and life stage. For example, if you are starting out in life you may opt for higher risk investments whereas if you are a year away from retirement it may make sense for you to adopt a more conservative approach.
Your financial adviser should be able to help you choose an investment mix that combines the potential for healthy long term gains with a level of risk you are comfortable with.
4. How flexible is my super fund – can I trade shares?
Having a reasonable say over how cash in our super fund is invested may help us take greater control over our financial futures. While some of us may opt for the ease of a balanced super fund, it could be worth investigating whether your super fund gives you flexibility to choose where some, or all, of your money is invested.
If you are seeking greater flexibility with your investments, consider asking your financial adviser to assist you in identifying a fund which offers this capability. If you don’t have a financial adviser, check with your fund – many super funds can organise for you to speak to one.
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