News

Investment strategies through thick or thin

GENERAL

07/10/2020

What started primarily as a health crisis, the coronavirus has devastated economies across the globe. Australia is not immune, with experts unanimously agreeing that we are now in a recession. This means many of us are not only grappling with health concerns, we're also worried about the financial impact these events will have on our super.

Keep a level head

When it comes to market cycles, the rollercoaster of investor emotions often gets in the way of making the right decision. In times of prosperity, you may feel excited and optimistic. But in a downturn, this can quickly turn to fear. In order to manage your emotions and your investments, it’s important to stay calm and focus on the things within your control.

Think long term

If you have checked your super balance lately you may have noticed some fluctuations. This is normal. Share markets naturally go through phases of volatility, causing the value to rise and fall. It’s important to remember that super is designed to be a long term investment. History has shown that past events - like the global financial crisis, natural disasters and Brexit - have all created periods of negative returns and volatility. But in the long term, the share market typically bounces back.

Review your investment profile

Even knowing that markets will recover, many people feel tempted to switch to a lower risk option. But often, changing your investment choice can mean missing out on subsequent market improvements. To avoid being short-changed in retirement, we suggest carefully reviewing factors such as your age, life stage and risk appetite before making any drastic changes while markets are volatile. A financial adviser can help you decide the best move.

The strength of diversification

Investing in a variety of asset classes, not just the share market, can help reduce risk while still delivering strong long term returns. Consider spreading your investments over a broad mix of asset classes - shares, property, bonds and cash - to balance the highs and lows of market volatility.

Your super checklist

  •  Remain calm and don’t panic
  •  Consider your short, medium and long term needs
  •  Review your current investment options
  •  Understand the risks of changing investments
  •  Schedule a free advice appointment before making any decisions

Need a little help?

Book a telephone advice appointment by calling our Client Services Team on 1300 660 027 between 8am and 5pm weekdays. Or hover over the Advice menu option at the top of your screen, select 'Book Appointment' and follow the prompts to schedule a time that suits you.

Find & combine

Consolidating your super into one account makes your money work harder because you save on paying multiple sets of fees.

Learn more