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Is the future of your super… super?

Do you think we are heading for a major economic and stock market disaster, as we saw with the collapse of Lehman Brothers? And the next question is, should I go to cash? I am close to retirement and I am very worried about my super.

Because you can get around seven per cent in fixed deposits, this does make cash or deposits attractive and careful investors will have increased their exposure to cash. I think if I were like you and I liked my super fund, I would be ticking the box on a conservative investment-style.

For me, I’m taking this as an opportunity to buy good stocks I like at low prices for returns over the longer-term of, say, three to five years. I know the market is risky now but over time these problems will be sorted and good companies and brands will prevail.

Remember this, unless you have many millions in super, you will have to play for some stock market returns in the early part of your retirement because we are all living longer. If you go to conservative, you could run out of money before you pull up stumps. Sure, be conservative but I think you need some exposure to shares to cash in on the good years that outnumber the bad over the longer periods such as 10 years.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

Published on: Monday, May 24, 2010

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