Momentum Invest Self Managed Superannuation Funds
Superannuation – Securing Your Future - prepared by Momentum Invest
Your superannuation plays a large role in determining your standard of living after retirement. That time can seem a long way off and many of us don’t stop to consider that our superannuation will have to go toward supporting us for 20 or 30 years after retirement.
With so many super funds to choose from, sorting out our superannuation can be a daunting task. Here are a few tips that may help you to make an informed decision to secure your future.
What should I look for in a superannuation fund?
There are a number of things that should be considered when choosing a superannuation fund. The most obvious is, of course, the fee structure of the funds that you’re considering.
A 1% difference in management fees may seem quite small at first glance. When you look at the big picture though, paying an extra 1% in fees each year could result in a total loss of 20% of your retirement benefit (as quoted in Super Choices booklet, Australian Government).
You should also take into consideration the investment options and the risks versus the returns of each investment strategy.
A quick look at investment strategies
There are three major groups of investment strategies: Growth, balanced and capital stable.
Growth strategies tend to invest heavily in shares or property. This type of investment is geared toward higher returns but risks higher losses during bad years. Growth strategies tend to earn the highest returns in the long term.
Balanced strategies also tend toward investment in property and shares, but the risk factor is off-set to a degree by a 30-40% investment in fixed interest and cash. This kind of strategy tends to produce reasonable returns with a reduced risk of loss in the long term.
Capital stable strategies place the majority of the money with fixed investment rates and cash, with some minimal investment in shares or property. While this investment strategy may reduce risk in the long term the return is generally low.
If you earn your wage as an employee and choose to contribute to your super from your net pay the government may contribute up to $1.50 for every $1 that you contribute (up to a maximum amount of $1,500). Co-contributions cut out when you earn $58,000 per year.
Where and how to invest your super is a vital decision and you should take care to thoroughly research any fund that you consider joining. Further information is available at www.superchoice.gov.au, presented by ASIC (the Australian Government Securities and Investments Commission) to sets you on the road to wise investment.
Don’t forget that there are other options available for those wanting to invest for their retirement. Momentum Mortgages and Momentum Capital offer low risk investment options that are also suitable as retirement funds and you’re welcome to speak to one of our friendly about the products and services that we offer.
For more information on Momentum Invest, Momentum Mortgages, Momentum Capital, Momentum Insurance, and self managed superannuation funds, please visit our complete website at www.momentuminvest.com.au.