Momentum Invest Retirement Funds
prepared by Momentum Invest
To maintain your standard of living and enjoy your new-found freedom on retirement, it is vital that you establish a retirement fund. A Government pension doesn’t go far, and we tend to forget that we’ll have to support ourselves for 20 (maybe even 30) years after our retirement.
With so many investment options available it can be difficult to choose the best course to take. Superannuation and self-managed superannuation funds are by far the most popular options when planning for retirement, but fixed interest mortgage funds and cash investments are also valid options.
Superannuation Retirement Funds
What do you look for when choosing a superannuation fund? There are so many available and, now that many of us have the freedom to choose one for ourselves, it can be hard to evaluate the many options. So here are two things to look at:
• Fee structure
Different funds attract different fees, so it’s wise to compare before committing yourself. A 1% difference in management fees each year could result in a total loss of 20% of your retirement benefit (as quoted in Super Choices booklet, Australian Government).
• Investment options
You have to feel secure about the investment choices offered by your fund – you must find the level of risk versus reward that you are comfortable with. Most funds offer three basic choices: growth option investment offering higher return at a higher risk; balanced option combines high and moderate risk investments for a safer investment but with lower return; and capital stable, considered to be the safest option but, again, with lower return.
Self-managed Superannuation Retirement Funds
Self managed superannuation funds offer greater choice and flexibility and management fees are lower than those of managed superannuation funds, but you must have the time, skill and interest to do a good job of managing your fund.
If you’re considering managing your own super it would be a wise idea to talk to an industry professional – the set up can be complex and you will most likely need the advice of an accountant or other financial advisory service.
Retirement Funds with Momentum Mortgages and Capital
You don’t have to invest in a superannuation fund to prepare for retirement. A managed fund from Momentum can be just as effective and, if you choose to reinvest your super after you retire, this option is a great way to ensure a regular income.
The advantage of a managed fund is that the administration tasks and investment decisions are taken care of – all you have to do is sit back and enjoy the lifestyle.
Both mortgage and cash funds – such as those offered by Momentum – are relatively low risk. You’ll have ready access to your funds, including a share redemption facility, or you can choose to invest your capital and live off the interest earned.
Because your money is invested across a range of portfolios there is very little risk to your capital. Diversification of assets is vital in ensuring your financial future and leaving the research and acquisition of assets to industry professionals gives added security.
At Momentum we want you to feel secure in the knowledge that our dedicated, professional team are working to grow your wealth. If you’re planning for your retirement, or, if you’ve already retired and are looking for a low risk investment with great interest rates to generate an income, then we invite you to contact us for further help with managing your retirement fund.
For more information on Momentum Invest, Momentum Mortgages, Momentum Capital, and Momentum Insurance, please visit our complete website at www.momentuminvest.com.au.