5 cruise destinations you need to add to your bucket list

Papua New Guinea

A nature lover’s paradise, Papua New Guinea may only be a fraction of the size of Australia but it has just as many mammal species and even more types of frogs and birds.

Papua New Guinea’s basic tourism infrastructure means the country poses a challenge to even the most intrepid of travellers. As a result, cruises have become a popular way of seeing this destination which is home to a high percentage of the world’s biodiversity, volcanic terrain, a pristine underwater environment teeming with fish, as well as a vibrant culture.

Check out P&O Cruises, Silversea, Princess Cruises, Aurora Expeditions, Northstar Cruises, Coral Princess Cruises, APT, Cunard and Regent Seven Seas Cruises for more information.

Antarctica

The southernmost continent in the world has earned its place on many a bucketlist thanks to its dramatic landscapes and abundant wildlife. Think vast glaciers and ice-capped mountains which are home to adelie and emperor penguins, south polar skuas, snow petrels, southern fulmars and many more species of bird. You’ll also find whales and seals feeding in the waters around the ice edge around this time of year.

Although locked under ice for most of the year, the brief summer months bring with them enough warmth to make the area accessible.

Cruising is really the only way for travellers to access this region, so it’s simply a case of picking the right cruise: Operators, such as Lindblad and Aurora Expeditions, set sail from South American ports such as Ushuaia in Argentina. Some depart ports closer to home such as Hobart and Port of Bluff near Invercargill.

The Kimberley

If Sir David Attenborough describes somewhere as “one of the greatest natural wonders of the world”, you know it’s got to be worth a look. So put Horizontal Falls in Talbot Bay in the Kimberley’s Buccaneer Archipelago on your list.

The Kimberley’s other spectacular sights are an added bonus.  At Montgomery Reef, the tidal ebb and flow reveals a semi-submerged world of waterfalls, reef birds and marine animals such as turtles, manta rays and the occasional dugong. Then there are the tiger-striped rock formations of the World Heritage Bungle Bungle mountain range in Purnululu National Park.

Remote and unspoilt, this breathtaking region of waterways and rivers is definitely best explored by cruise ship. APT, Aurora Expeditions, Silversea, Northstar Cruises, Lindblad National Geographic, Kimberley Quest, Princess Cruises all operate itineraries in the area.

The Mekong

This giant of a river flows through no less than six countries, starting its 4,350km journey in South Vietnam and making its way through Thailand, Cambodia, Laos, China, Myanmar (Burma) to finish up in the Mekong Delta.

While rice paddies are plentiful along the river’s length, it remains one of Asia’s least developed rivers – great news for wildlife.  Monkeys may be the most common sighting on any Mekong river cruise, but the river is home to a whopping 20,000 species of plants, 430 mammals, 1,200 birds, 800 reptiles and 850 fish. In fact, the only river in the world that can boast more biodiversity than this one is the Amazon.

Beyond the nature, there are dreamy Buddhist temples, traces of the region’s bloody history and vibrant cities such as Phnom Penh and Ho Chi Minh City. But perhaps most special are the glimpses of everyday life – fishermen trawl the waters for their daily catch, kids splash in the shallows, women wring their laundry.

With the Mekong one of the hottest river cruise destinations right now, you’ll have no trouble finding an itinerary to suit you. Check out Insider Journeys, APT, Uniworld and Scenic for the latest offerings.

 

The Ganges

What better way to get to know a country as diverse and confusing as India than by leisurely sailing along its most beloved waterway, the Ganges?

 More than just a river, the Ganges is actually considered to be a Hindu goddess. It has played a vital role in the country’s history and continues to be of utmost importance in the daily rituals of the people that live along its length. Beyond being simply the site for the undertaking of daily chores such as washing, laundry and watering the animals, its sacred properties make it a place of prayer, reflection and farewell.

Most people yearning for an encounter with the holy waters generally head for Varanasi – the spiritual capital of India with more than 2,000 temples and probably as many cows. But despite the city’s chaotic charms, there is far more to the river. Think colonial cities, gangetic dolphins and even tigers.

So the perfect way to see it? Obviously by boat. More and more operators are cottoning onto this, and now you can make the journey in a style not previously available.

Insider Journeys, APT, Uniworld are among those that offer Ganges cruises.

 

Important information

Information is current as at 31/08/2016 and may change.

Please keep in mind that the above links are provided for information purposes only. You will need to make your own judgement about the reliability of the information contained on these sites. MLC is not affiliated with, nor endorses any content on any other website.

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Planning on giving money to your kids?

If you give money to your kids, it won’t automatically come back to you if any of those things happen.

  • on their separation or divorce, it would be an asset of their relationship and be available for distribution between your son or daughter and their partner under the Family Law Act or the Property (Relationships) Act.

  • on death, those funds will flow to their beneficiaries as stated in their Will (or if they don’t have a Will, in accordance with the laws of intestacy).

  • on bankruptcy, their trustee in bankruptcy will be able to use those funds to pay themselves and any creditors.

In order to protect against these types of events, the advance needs to be documented as a loan. In the absence of such a document, the “presumption of advancement” applies because of the relationship of parent and child and it will be considered a gift.

Ideally, in addition to a Loan Agreement, some form of security for the loan could be provided, such as a Mortgage or Caveat over land or a Security Interest registered on the Personal Property Securities Register.

Source

Reproduced with permission of McKillop Legal (02) 9521 2455

Important

This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for their action or any service they provide.

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Financial abuse: Protecting your money from others

Financial abuse occurs when another person, perhaps your partner, one of your children, another member of your family or a friend, controls your access to money or other property without your consent. It can happen to anyone, no matter how old you are or how much money you have.

What is financial abuse: the warning signs

When you are in a financially abusive relationship it can sometimes be difficult to recognise the warning signs.  Sometimes it takes a friend to spot the signs and help you find the support you need. 

Here are some of the warning signs you may be in a financially abusive relationship:

  • Another person controls your access to bank accounts.

  • The other person refuses to contribute financially to you or the family, or they are not providing enough money to cover living expenses.

  • You are being prevented from working or studying.

  • Someone is taking out loans or running up debts in your name.

  • You have to account for how you spend your money.

  • Someone is selling your property (or threatening to sell it) without your permission.

  • Money is being hidden from you.

  • You are being made to feel like you are incompetent with money.

Financial abuse is often accompanied by anger, verbal abuse, or the threat of violence.

Where to get help and support for financial abuse

If you think you may be experiencing financial abuse, you can contact the following organisations for assistance:

Organisation

What they do

Contact details

1800 RESPECT

Free, confidential family violence and sexual assault counselling service

1800 737 732, 24 hours a day, 7 days a week

Family Relationship Advice Line

Information and advice on family relationship issues and parenting arrangements after separation

1800 050 321, 8am-8pm Mon to Fri, 10am-4pm Sat

Lifeline

Provides crisis support services

131 114, 24 hours a day, 7 days a week

Relationships Australia

Counselling services, mediation, and family dispute resolution services 

1300 364 277 (call from anywhere in Australia for the cost of a local call)

WIRE Women

Victorian free information support and referral service for women, conducts research into women and financial abuse

1300 134 130

 

Elder financial abuse

Older people are particularly vulnerable to financial abuse because they are often dependent on family members and other people for their day-to-day care or social contact. The people around you might seek to control your money or other assets.

Elder financial abuse commonly involves family members, including spouses, children, grandchildren, nieces or nephews, but can include others such as carers and neighbours. 

Signs of elder financial abuse

As well as the warning signs listed above, here are some additional red flags that may be a sign that you are experiencing elder financial abuse:

  • Another person is controlling your bank accounts or credit cards or using them without your consent.

  • You are being forced to change your will.

  • A friend or family member is pressuring you to appoint them as your enduring power of attorney.

  • Your signature has been forged on cheques, bank accounts or legal documents.

  • Your bills haven’t been paid, even though you have entrusted someone to do this for you.

  • You are being pressured to invest money in schemes that sound too good to be true.

  • Large or unexplained withdrawals or transfers have been made from your bank account.

  • You are being isolated from your family or friends, or threatened with being isolated if you don’t give the perpetrator what they want.

  • Your property or possessions are being used without your permission.

  • You are made to feel guilty if you don’t give money to the perpetrator or their family.

Financial abuse often occurs with other forms of abuse, such as physical abuse, sexual abuse, psychological abuse or neglect. Evidence of these forms of abuse is usually more visible than financial abuse, and can sometimes be a sign that financial abuse is happening.

Case study: Maurice is financially abused by his daughter

Maurice did not want to move into a care facility when he was diagnosed with dementia, so his daughter moved him into her family’s spare bedroom.  She then convinced Maurice to appoint her as his enduring power of attorney. 

When she had control of Maurice’s finances, she sold his house without his knowledge and used the funds to pay off her own mortgage.  She and her husband also bought a new car and used Maurice’s money to pay their children’s school fees. 

The financial abuse was only uncovered when Maurice’s niece became concerned that she had not heard from him for some time. She contacted the Elder Abuse Hotline in her state for advice to help Maurice.

Support for elder abuse victims

You can obtain free legal advice from a community legal centre or Legal Aid office in your state or territory.

There are also organisations in each state and territory to support you if think you, or someone you know, might be experiencing elder financial abuse:

Location

Organisation

Contact details

National

Alzheimer’s Australia

1800 100 500

ACT

Older Persons Abuse Prevention Referral and Information Line

ACT Disability, Aged and Carer Advocacy Service

02 6205 3535

(02) 6242 5060 or  1800 700 600

NSW

NSW Elder Abuse Helpline

1800 628 221

NT

NT Elder Abuse Information Line

1300 037 072

QLD

Elder Abuse Prevention Unit

Queensland Aged and Disability Advocacy

1300 651 192

1800 818 338

SA

SA Elder Abuse Prevention phone line

Alliance for the Prevention of Elder Abuse

1800 372 310

08 8232 5377 (Adelaide) or 1800 700 600 (rural)

TAS

Tasmanian Elder Abuse Helpline

(03) 6237 0047 or 1800 441 169

VIC

Seniors Rights Victoria

Elder Rights Advocacy

1300 368 821

1800 700 600

WA

Advocare Inc.

1300 724 679 (Perth) or 1800 655 566 (rural)

Financial abuse is never okay.  In some states and territories it is regarded as a form of family violence.  Recognise the warning signs and don’t be afraid to get help.

 

Source

Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at www.moneysmart.gov.au

Important note: This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.  

Important:

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for their action or any service they provide.

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A paradoxical relationship: The self-employed and super

It seems paradoxical. The self-employed are among the most enthusiastic supporters of self-managed super yet the majority of the self-employed have little or no super. 

Certainly, many informed owners of successful businesses aim to make the most of superannuation, including its concessional tax treatment. For instance, numerous small business owners hold their family business premises in their family seeking tax effectiveness, asset protection and security of tenure. 

A paradoxical relationship: The self-employed and super
Yet a new research paper, Super and the self-employed – published by the Association of Superannuation Funds of Australia (ASFA) – reports that 22 per cent of the self-employed have no super while most of those with some super have extremely inadequate amounts. This is, sadly, no surprise; ASFA has been tracking the plight of the self-employed and super for years. 

The fact that 78 per cent of the self-employed have some super gives an overly-positive impression. This super is often attributable to small compulsory contributions picked up sometime in the past when working for an employer – perhaps doing casual, part-time work. 

ASFA reports that just 27 per cent of the self-employed aged 60-64 have more than $100,000 in super compared to almost half of employees. Keep in mind that super savings tend to be at a high point in this age group in the typical countdown to retirement. 
A critical difference between the self-employed and employees is the compulsion to contribute to super. The self-employed are not compelled to make contributions under the superannuation guarantee system. 

This means that it is up to individuals to make up their minds to voluntarily contribute to super. And as many people who have run a small business can no doubt testify, there always seems to be some pressing need to spend money on business-related expenses rather than retirement savings. 

Self-employed women are in a particularly unfortunate position regarding super. 

Females have much lower average super savings than males – whether self-employed or employed. This is due, in a large part, to their lower average incomes and often interrupted careers to raise families.

Self-employed women have super balances that are about a third lower than both employed women and self-employed men. And self-employed women aged 60-64 had an average super balance of $85,551 in 2013-14 against $154,883 for a self-employed man. 

It makes much sense for the self-employed to be made fully aware of super’s concessional tax treatment and to better understand that even relatively modest super savings may make a significant different to their standard of retirement living. 

Hopefully, more small business owners will consider whether their retirement savings are adequate and to think about taking financial planning advice about whether they can afford to make higher voluntary super contributions. 

ASFA’s report argues suggest that there is “considerable scope” for superannuation funds to market themselves to the self-employed and to build awareness of the benefits of saving through super. There is also an important role here for advisers. 

Expectations of valuable tax deductions for eligible concessionally contributions should appeal to astute business owners – in addition to the rewards of a more comfortable lifestyle in retirement. 

Another case for super that should appeal to the self-employed is that superannuation provides a means to quarantine their personal savings in the event that their business suffers a setback.

Sometimes we hear small business owners say words to the effect that “my business is my super”. But being able to eventually sell a business for what the owner believes it is really worth can be a very different matter – particularly if the enterprise is based on an individual’s personal endeavours.

 

Source:

Written by Robin Bowerman, Head of Market Strategy and Communications at Vanguard.

Reproduced with permission of Vanguard Investments Australia Ltd

Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) is the product issuer. We have not taken yours and your clients’ circumstances into account when preparing this material so it may not be applicable to the particular situation you are considering. You should consider your circumstances and our Product Disclosure Statement (PDS) or Prospectus before making any investment decision. You can access our PDS or Prospectus online or by calling us. This material was prepared in good faith and we accept no liability for any errors or omissions. Past performance is not an indication of future performance.

© 2016 Vanguard Investments Australia Ltd. All rights reserved. 

Important

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for their action or any service they provide.

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11 places in Australia to visit when you retire

Retirement is the perfect time to get out and see more of Australia, from the tropical north to the wilderness of the south and the red earth in between. Here are 11 amazing places in Australia to visit when you retire, or for enjoying a mini-retirement.

1.    Bruny Island, Tasmania

If natural wilderness outlined with uninhabited coastline, accompanied by local wine and cheese sounds enticing, then a visit to Bruny Island may be for you. Situated on the south eastern corner of Tasmania, Bruny Island is made up of two islands separated by a small strip of land called the ‘neck’. With stunning scenery of rugged coastline, forests and secluded beaches, Bruny Island is perfect for bushwalking, fishing, bird watching and surfing. There are plentiful beaches and tracks to discover including the walk to Truganini memorial, with spectacular views of both islands, and the beautiful sandy shores of Fluted Cape.

Bruny Island is accessible via ferry, leaving from Kettering on the Tasmanian mainland and can carry both vehicles and passengers. There is no transport available on Bruny Island, so hiring a car might be a great option for getting around.

2.    Katherine Gorge, Northern Territory

Rich in Aboriginal history and dotted with traditional art, Katherine Gorge is a series of 13 sandstone gorges situated within Nitmiluk National Park in the Northern Territory and is a wonderful place to visit during retirement. Famed for thermal hot springs and 360⁰ views of spectacular outback, the area can be explored by canoe, boat, foot or helicopter, depending on your required adventure level.

Nitmiluk National Park is traditionally owned by the Jawoyn and Dagomen people who jointly manage Nitmiluk with Parks & Wildlife. Visiting will allow you to learn more about the culture and history of the land, including the seasons to hunt, harvest and roam. The area has great cultural and spiritual significance with rock paintings scattered throughout, many dating back to thousands of years ago.

Katherine Gorge is accessible via a drive from Katherine, with buses leaving daily.

3.    Wilson Promontory, Victoria

Wilson’s Prom is a much loved area of coastal wilderness in Southern Victoria. The park is perfect for walking and exploring, with a winding map of walking trails. The Prom is home to an abundance of native wildlife, fern gullies and inspiring rock formations amongst a variety of landscapes including rainforest, forests, beach and coastline. A perfect spot for divers, the surrounding waters are home to a plethora of marine wildlife, amongst a protected marine park.

The traditional owners for the land are the Boon Wurrung, Bunurong and Gunaikurnai people. A must do is a visit to the Wilsons Promontory lighthouse located on a promontory on the southernmost tip of mainland Australia.

Getting to Wilson’s Prom is about a 2.5 hour drive from Melbourne.

4.    Noosa, QLD

Noosa in Queensland is a tropical resort town of rainforests, beaches and fine dining, making it a nature and life lover’s dream. Wander through the Eumundi markets selling a variety of clothes, jewellery, food and wine or visit nearby Fraser Island, the world’s largest sand island and World Heritage listed site.

While in Noosa watch dolphins and whales near the shore, hike through Noosa National Park to see amazing views along many walking trails to choose from, or stroll through a wide range of shopping.

Noosa has accommodation options for all budgets and is just within a 90 min drive from Brisbane as well being accessible via air.

5.    Hunter Valley, NSW

The Hunter Valley is delightful for a retired holiday, combining sophisticated dining and wining with beautiful surroundings. The Hunter Valley is home to over 150 wineries, and is Australia’s oldest wine region with vineyards dating back to the 1820s.

The Hunter Valley is designed for treating yourself to fine dining, spa days, golf and even horse riding. The region is also often host to many events including Jazz in the vines, Lovedale Long Lunch and Sculptures in the Vineyards. The Hunter Valley is lovely any time of year, but during Autumn it is a feast for the eyes with trees turning rich tones of red and yellow. Cellar doors in the wine country cater for wine tastings throughout the region, with some by appointment but many you can drop in on.

The Hunter Valley is just a 2 hour drive north of Sydney, with the closest airport being in Newcastle about an hour’s drive from the Valley.

6.    Margaret River

Set on a stretch of pristine coastline, Margaret River is a delight for everyone being both a food and wine lovers dream, and an outdoor adventure seeker’s haven. As a wine region Margaret River is a premier location, featuring some of Australia’s best up and coming wineries. A must do in the area is simply exploring the coastline – Margaret River has some 100 km of coast completely uninhabited.

While exploring Margaret River another must is a whale sightseeing tour, with the area being home to a plethora of local whales and features an extra-long whale season ranging from May through to early December. You can view whales from out in the water or even spot them from the shore. Finish your day at one of the many fine restaurants in the area.   

Margaret River is a 3 hour drive from Perth.

7.    Mt Kosciusko

For the adventurous at heart, the beautiful Mt Kosciusko in Snowy Mountain Park may be a great place to visit once you retire. The view from the summit is best viewed by chairlift, which is open 365 days a year and lovely in any season. If you’ve never visited the tallest mountain of Australia, now could be the time.

During the winter there is of course plenty of winter sport action, but during summer in Mt Kosciusko there is much to see and activities to do such as mountain biking, fishing, camping, bushwalking and horse riding. Walking up to the top is achievable for all levels of fitness and mountaineering experience with a path that can be followed all the way up.

Getting to Mt Kosciusko is accessible easiest via Canberra airport with a 2 hour drive, or a 6 hour drive from both Sydney and Melbourne.

8.    Adelaide Hills, South Australia

South Australia is not only a great place to visit in retirement, but is also a very popular place to retire in, having a higher proportion of older Australians than other states along with Tasmania.

The Adelaide Hills are typically a little cooler than the surrounding plains and are a place to simply enjoy food and wine surrounded by amazing views. The area is home to some of Australia’s cooler climate wines. Vineyards in the area include: Arranmore wines, Artwine, Ashton Hills, Hahndorf Winery, Howard Vineyard, Kersbrook Hill Wines, Longview plus many more, there are over 60 wineries in the region.

Additional activities in Adelaide Hills include picking fruit, driving through the countryside, bushwalking, and the area is perfect for cycling.

Getting here is accessible easily from Adelaide being about a 30 minute drive from the city. 

9.    Port Douglas

In the far north of Queensland is Port Douglas which is perfectly tropical and far away from any nearby city. Port Douglas is the only spot on Earth with two heritage listed sites close by: the Great Barrier Reef and Daintree Rainforest with Cape Tribulation. As a tourist destination, Port Douglas has come of age from its early days as a fishing village and is now a vibrant holiday spot, however without the hustle and bustle you might find elsewhere in Queensland.

The number one must do activity in Port Douglas is visiting the Great Barrier Reef, a national and natural treasure. As well, explore the tropical wonders of the Daintree and Four Mile Beach with its lush tropical setting lines of white sandy beach lined with palm trees.

Port Douglas is about a 20 hour drive from Brisbane, making it most accessible via Cairns airport, with an approx. 1 hour drive north. The drive itself is a delight as it follows the coast taking in the view along the Great Barrier Reef Drive, there are also coaches available for transfer.

10.    Hobart

Hobart is one of those places you’ll want to stay for a while to soak it all up. A city brimming with buzz, there is a well-rounded atmosphere of food, wine, museums, art, all surrounded by incredible wilderness with some off the cleanest air in the world. Your trip to Bruny Island may well start here in Hobart.

The food centre is on Salamanca Pl where the local Tasmanian produce comes out to impress, and is looked over by Mt Wellington which is seemingly made perfect for bushwalking and mountain biking. Things to do include the Salamanca Markets held every Saturday and catching a show at the Theatre Royal, first opening in 1837. Another must do whilst in Hobart is a visit to the Mona museum, showcasing new and modern art set on a peninsula in the harbour, accessible via catching a ferry from the Brooke St terminal in Hobart.

Hobart is accessible via air from major cities, or if you are coming from Melbourne there is the Spirit of Tasmania ferry which allows you to bring vehicles. 

11.    Broome

The pearl in the Kimberley’s crown is Broome situated in the north-west of Western Australia. Being far removed from most places in Australia, Broome is a great spot to visit when time is not of the essence.

Broome has a unique landscape of the desert coming down to the coast, where red earth meets the ocean, making a spectacular location for sunrise over the beach. Ride a camel on famous cable beach, shop for local pearls and visit the Bungle Bungle range nearby.  The town has a strong multicultural background with a Chinatown in the middle, due to a history of pearl diving both surprising and tragic. There’s more than just pretty scenery in Broome.

Broome is best accessible via air, with the airport is in the middle of the centre town and Cable Beach on the Indian Ocean coast.

If you’d like to travel Australia when you retire, discover how you can boost your super savings today.

Important information

Information is current as at 5 September 2016 and may change.

Please keep in mind that the above links are provided for information purposes only. You will need to make your own judgement about the reliability of the information contained on these sites. MLC is not affiliated with, nor endorses any content on any other website.

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Choosing an investment option

As part of your retirement savings plan, it is important you understand how your superannuation money is invested by your super fund.

No two people’s financial situation and investment requirements are the same. To cater for these different needs, most superannuation funds offer you a choice about how your superannuation money is invested. Funds offer a range of different investment portfolios that you can choose from. You can also choose to spread your super money over multiple investment portfolios.

One advantage of investment earnings in super is that they are taxed differently to your other income.
The maximum tax rate on superannuation investment earnings is currently 15 per cent, compared to the marginal tax rate that is applied to your investment earnings and income outside superannuation, which could be up to 45 per cent (not including Medicare Levy and Temporary Budget Repair Levy).

The different investment options

Most superannuation funds will offer a range of investment options for you to choose from. These will vary in their level of risk and the kinds of assets held within them.

You may see terms such as Growth, Balanced, Conservative and Cash.

Other funds may refer to investment options like Australian Equities, International Equities, Sustainable Shares, Property, and Fixed Interest.

Further information about the options available, the assets held within them and the likely risks and returns should be available on your fund’s website.

Why should I care how my super is invested?

You’re probably thinking it’s not your job to worry about how your super is invested, but it pays to take an interest. Investment choice can have a big impact on the final lump sum that you receive when you retire, due to the impact of compound interest. Over a working lifetime, the same amount of money invested in different investment options can produce different results at the end. Therefore it’s important the take the time to understand the different options available to you and the potential impact it could have on your investment earning.

How do I choose?

Your age is very important when it comes to making an investment choice.

When you join a fund you are asked if you would like to choose a specific investment option on the form. If you don’t choose an investment option you are placed in what is commonly called the default option.

If you didn’t choose a specific investment option when you joined the fund this doesn’t mean you can’t select one later.

When it comes to choosing which investment option is most suitable for your superannuation savings, there are a couple of basic questions that you need to ask yourself before making a decision:

  • How much risk do I feel comfortable taking?

  • What type of return am I seeking for my money?

  • How long will I be investing for?

The answers to these questions will help guide you in choosing the right investment option or mix of options for your superannuation savings.

Your age is very important when it comes to making an investment choice. How long you expect your money to remain invested (or your investment timeframe), will have a significant impact on the investment mix that is most appropriate for you.

If you are young and have a long time until you will need to access your money, the short term ups and downs that can occur when investing in higher risk options such as shares may not be so important. History has shown that over the long term, short term fluctuations tend to be outweighed by the higher returns from these ‘riskier’ types of assets.

If you will need to access your money soon, it may be more appropriate to protect it by investing in assets that are considered lower risk, even though this may result in lower returns over the medium to long term. On the other hand people entering retirement may still have 20-30 years to plan for. Depending on your appetite for risk, it may still be appropriate to invest some or even most of your savings in ‘growth’ products for the longer term.

Source:

Reproduced with the permission of the The Association of Superannuation Funds of Australia Limited. This article was originally published at www.superguru.com.au

 

Important:

This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for their action or any service they provide.

 

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