Important considerations when choosing your investment option
Knowing how long you have to invest your money in superannuation is one step toward choosing the investment strategy that suits you. Another important consideration is how comfortable you are accepting the risk of fluctuating returns.
Four questions to ask yourself
- What are my goals and plans for retirement?
- How long do I want my retirement income to last?
- What is my risk profile? For example, am I comfortable taking the risk of fluctuating annual returns knowing that I may achieve higher average returns in the long-term? Or would I prefer a lower risk option that may produce more consistent annual returns but lower average returns in the long-term?
- When do I plan to start using my super?