It’s often said that markets take the escalator up and the elevator down. The share market generally has minor ups and downs each year, but every now and then it has a significant plunge, before gradually climbing up that escalator again.
When this happens, it may seem rather doom and gloom, but reacting and making rash decisions without careful consideration could disadvantage your retirement savings. If you hop off the elevator at the ground floor you may be locking in your losses.
What does this mean for your super?
Most superannuation funds have an allocation to Australian and global shares and are impacted by this volatility. For Club Super, most of our members are invested in diversified options, such as the Balanced option, in which shares only form part of a range of assets which make up the returns for this option. Our investments are spread across a range of asset classes of both a growth and defensive nature.
Club Super’s diversified investment portfolios are designed to help minimise the impacts of market volatility. However, the portfolios are not immune to the impacts of market volatility and we will likely see the impacts of volatility from time to time.
What you can do
- Focus on your chosen long-term risk profile and underlying investment options rather than reacting to short term market fluctuations; and
- Give careful consideration before switching your investment options now as it may result in a reduction of the value of your superannuation. It will be very difficult to correctly time a switch back to your original investment options in order to recover any lost value once investment markets stabilise again.
We’re right beside you
Club Super Financial Planning are available to assist with reviewing your chosen level of risk for your Club Super account.1 If you would like to speak to a Club Super Financial Planner or if you have any questions regarding your super, please call us on 1300 369 330 or email firstname.lastname@example.org
Past performance is not necessarily indicative of future performance.
1 Club Super Financial Planning advice is provided by My Super Future Pty Ltd (ABN 38 122 977 888) Australian Financial Services Licensee (AFSL no. 411440). The Trustee is not responsible for, and does not accept liability for the products or services or actions of My Super Future Pty Ltd. You should use your own judgment before taking up any product or service offered by My Super Future Pty Ltd.