There has been a lot of talk recently about whether Australian superannuation funds have too much exposure to shares and not enough in bonds. We have the former head of the Future Fund, we have former Prime Ministers, we have journalists all coming out and adding their two bobs worth on superannuation. If they were all singing from the same song sheet you’d start to think they might be on to something. The problem is, some of them agree that Australian superannuation funds are too exposed to shares whilst others are saying, the exposure is just about right.
Well, here’s my two bobs worth.
How do they know what the most suitable investment mix is for YOU? The answer is… they don’t. To know the mix that is right for you they need to know YOU. Makes sense doesn’t it? They need to know what assets you own, what debts you owe, how much income you earn, what your expenses are, what your risk profile is etc. Not only do they need to know all of these things but they also need to know what your goals and dreams are. Financial Planners call this ‘know your client’.
You may have picked up where I’m going with all of this. A good financial planner will know you well. Well enough to know what the most appropriate investment mix is for YOU.
Don’t leave the management of your super (which is more than likely your biggest asset outside your family home) to someone who doesn’t know you from a bar of soap. Find yourself an adviser who will take the time to get to know you. Trust them and work with them so that the end result is a superannuation fund that is completely tailored to meet your unique circumstances.
Till next time
This article contains general information only. It does not take into account your objectives, financial situation or needs. Please consider the appropriateness of the information in light of your personal circumstances.