What’s wrong with leaving my super in the default option?
My super fund has a lot of several investment options. How should I decide which (or that) should I use? Is there anything wrong with leaving it only in the default option?
Thanks for raising this question. The investment options you choose inside Super have a very significant impact on your pension benefit and the longevity of your savings.
In large part, the appropriate investment option is determined with reference to your age. The further you are from the pension, the more aggressive you can be. The most aggressive options will be more volatile, which is why a long period of time is important.
There is nothing wrong with being conservative with your super, but depending on your age, you could lose some great returns.Credit: Simon Litch
Markets increase by about 3 out of 4 years. As long as you are for a reasonable period of time, therefore, you will get an excellent result. But the negative years are inevitable and are part of the investments.
In fact, the potential for occasional negative returns explains why investments in shares and properties produce higher returns than the bank -detained savings. You are compensated for dealing with this volatility. To manage this risk, invest in the long term so that positive returns exceed the negative aspects and your saving for retirement.
There is also a psychological factor here. Investing aggressively, there will be periods in which the balance of your account decreases abruptly. It is essential to ride these periods and not sell.
If you don’t feel sure you do it, you should consider a more conservative option with a more fluid platata.
They are single, 64 in May with $ 1.9 million in super, $ 300k in a compensation account and a mortgage of $ 975,000. In light of the current global uncertainty, I would prefer to take $ 800,000 from my super to pay my mortgage, leaving me with $ 125,000 in cash in bank and $ 1.1 million in super. Will my SuperranNuation background allow me to do this before my 65th birthday in 2026?
It is possible to access between 60 and 65 superanuation if it has withdrawn or a retirement period has been recorded. In particular, the rule states: an agreement on the basis of which they were employed on a profitable level ended after reaching 60 years.
