What can you do when your superannuation drops?
Wednesday September 24, 2008
A superannuation fund needs to grow over time in order for you to reach your retirement goal, so what should you do in a year when it loses money instead of gaining it? Well, to start with, don't panic. The nature of a superannuation fund is that it will have an average rate of returns. If your superannuation fund has lost money this year, look back on other years and compare the growth of those years to the average. You are likely to find many years where the rate of growth was a lot higher than it seemingly should have been. Regardless of the types of superannuation funds you choose, there will always be good and bad years. What is important is that the average rate of growth is high enough.
One way many people deal with drops in their superannuation fund is to try choosing a superannuation fund with lower fees. This will usually mean an industry superannuation fund, but those with more time to organise their superannuation may decide to open a self managed superannuation fund. A self managed superannuation fund can be very advantageous, as services like those offered by ESUPERFUND can make self managed superannuation fund use both easy and much cheaper than using other types of superannuation funds. While it will certainly require more knowledge of how a superannuation fund works than you would need with other types of superannuation funds and will require closer management, a self managed superannuation fund can offer a large enough saving on fees to make the extra work worthwhile. As long as you choose a good service to support you in managing your self managed superannuation fund, such as ESUPERFUND, you may find you have a lot more money to work with than you used to in your superannuation fund.
Please click on our ESUPERFUND sponsor banner if you would like to read more about what they can offer you to help you start a self managed superannuation fund.
