07 August 2014
1 min read

What do going to the dentist, getting your car serviced and reviewing your super have in common?

These are all things we know are important, but we often put off doing them until it’s too late.

Choosing the right investment option now, could make a big difference to your future. It’s up to you to decide how your superannuation is invested and you need to tell your super fund when you want to switch investments.

When deciding which investment option to invest your superannuation in, here are some things to consider:

1. Are you willing to take more risk for potentially higher returns?

Each person will be comfortable with accepting a different level of risk. You should consider how willing you are to accept negative returns in some years to potentially achieve higher returns over a longer timeframe.

2. How long are you investing for?

Higher risk investment options will be more volatile in the short term but may provide higher returns over the long term. People investing for a short time may be better suited to lower risk options as they may need less volatility from their investments. Each investment option has a recommended minimum investment time frame which can help guide you.

3. Understand diversification

Diversification is best illustrated by the saying “don’t put all your eggs in one basket”. Asset classes, such as shares, property and fixed interest, perform differently over time. By diversifying across different asset classes you may be able to reduce your exposure to investment risk.

4. Choose an investment option

Take time to read about each of the investment options available to you and to consider if there is one option, or a combination of options, which may meet your investment needs. If you are unsure which investment options may be right for you, you should consider seeing a financial adviser and getting advice that is tailored to your personal situation. Remember if your financial situation changes you can change investment options at any time by completing a switch form or by logging on to the member website.

5. Review your investments regularly

Don’t set and forget. Your circumstances may change in the future, as may your retirement goals and investment timeframe. Make a plan to regularly review your super to make sure you are on track to making the most of your retirement.

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