A superannuation fund is the wealth accumulation vehicle most Australians rely on to fund their retirement lifestyle and is likely to be the largest asset outside the family home when you finally decide to retire. According to The Association of Superannuation Funds of Australia, superannuation assets totalled $3.4 trillion at the end of the March 2022 quarter.1
Many don’t understand which super fund investment options, contribution strategies, and tax benefits strategies are best for their circumstances and goals. Taking ownership of you’re your super fund early will help maximise your final balance once you decided to retire.
Today, we’re going to share with you three super fund investment tips that will help you grow your money. Ultimately, the main goal here is to grow the super fund to stay ahead of inflation and achieve your retirement goals. Read on to learn our Three Investment Tips To Grow Your Super Fund!
1. Start Early
The rule of thumb is to start saving for your retirement when you get your first job. If you are able to start early, you could be able to reap huge benefits in the future. The first benefit that you can get is time. The earlier you start saving, the longer you have to let your money grow (see compounding interest below).
Another benefit that you can get is experience. Many experienced investors say that they learn from their own mistakes and from the mistakes of others. If you are able to start early, you’ll be able to accumulate more experience – giving you time to learn the ropes of investing and to invest your money wisely. You will be able to take advantage of the time value of money.
2. Invest Regularly
Applying the principle of compound interest, the earlier and the more you invest, the better your final balance should be. This of course also depends on where and how you invest your money.
Remember that it doesn’t matter if you invest a small amount. The important thing is that you invest regularly, for example, if you can afford to, you might want to consider making a monthly contribution to your super fund.
Investing regularly means that you will be able to receive the benefit of the compounding interest.2 This means that the money that you invest early in the year will generate income for you later in the year. You will be able to use this income to purchase more investments, which will then lead to a higher income, and so on.
3. Invest Wisely
As you invest in super funds, make sure that you invest wisely:
- Don’t put all your eggs in one basket.
- Spread your investments by diversifying them.
- Invest in different asset classes that have different risk levels and returns.
There are a lot of ways that you can invest these days and super funds offer a wide variety of investment options. This means that there are opportunities for you to invest in almost everything. Just make sure that you know what you are investing in before you make your investment. This way, you will be able to take advantage of the opportunities that you’ll have in the financial world.
It is best to read your super fund’s Product Disclosure Statement and Investment Menu to ensure you have a thorough understanding.
Get Super Fund Investment Tips from the Experts
As you invest in your super fund, it is important that you invest wisely. There are a lot of opportunities in the financial world today. You just have to know how to take advantage of these opportunities. If you do, you’ll be able to enjoy the benefits of investing within your super fund, helping you to accumulate your wealth and, more importantly, enjoy your dream retirement!
The professional financial advisers of Central Coast Financial Planning Group can work with you to understand you and your goals and then create a tailored financial plan to maximise your superannuation fund for retirement. If you are looking for superannuation advice to grow your wealth, call or book online to secure your complimentary initial appointment!
DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.