How good is your Super Fund?
A friend of my recently told me that they had lost $75,000 in their super this year.
According to an analysis released on 4th August 2020 on Superguide, performance of ‘Growth category” super funds was analysed. These are the funds which invest 61% to 80% of their assets in growth assets. The top 10 funds returned a growth between 1% to 3% in 2019-20.
What are growth assets? They are high risk investments which yield a high return like shares and properties. According to the same report, the growth funds yielded a return of around 18% in the financial years ending 2018 and 2019.
Once we absorb the fees paid to the superfunds, the return this year would fall to a negative number. Which means that your contributions would be eaten into rather than added on to.
This is a good time to analyse the performance of your fund and get advice from a financial planner on whether it would be a good idea to carry on with your existing fund which may be heavily invested in shares and managed funds or move to a more moderate or balanced profile. This is an essential step to take as we are aware of the uncertainties facing the Australian and world economies in face of COVID.
Wagga Accounting does not provide financial planning services, but we are invested in your financial wellbeing. Find an independent planner and think about your future