Let’s Talk Super

On average, every 10 years we have a significant drop in investment markets, excluding the ‘flash crash’ of Covid, the last one we had was the Global Financial Crisis (GFC) 14 years ago. Some would say we are now overdue.

We are currently seeing inflation continuing to skyrocket and federal banks chasing after it with their blunt tool, interest rate hikes. Many are saying now that the possibility of global recession is almost inevitable. If this does happen a market crash is likely to shortly follow.

Having your super invested in the correct investment is vital. Often when you start a superannuation account you are, by default, put into a ‘My Super’ investment allocation. Now, for the average person, this might be appropriate. But, if you are reading this, we believe you are much more than just the average person.

This default allocation may be more or less risky than you should be invested in. If you are closer to retirement, it may be prudent to move to a more defensive investment allocation, to lock in your investment gains you have achieved over your life and to ensure a market crash doesn’t erode them away.

If you are younger, you may want to up the risk level. If there is a market crash, being more aggressively invested, you may benefit more from a market recovery than a more defensive investment allocation would.

Either way, have a look at your super allocation, see if suits your situation. If you are confused or need help, contact us and we will be more than happy to help.