I’m a bit of an ostrich when it comes to money — until my card gets declined at the supermarket, I tend not to look at how much I do, or don’t have in my bank account.
The thought of checking up on how my superannuation is doing, brings me out in a cold sweat.
But a report out this week suggests we could end up riding a superannuation slide if financial markets suffer a major downturn.
News Corp’s, MoneysaverHQ’s analysis of a dozen large Australian super funds found around 80% hold higher risk assets, with the norm being between 60-70%.
If there is a downturn in financial markets, those funds — and your superannuation — could also be at risk.
JBS Financial Strategists CEO, Jenny Brown says: “Higher-risk investments are not necessarily bad, if members have years to ride out the ups and downs, but funds need to be labelled correctly.”
She says: “The market is never going to go up 100% of the time but you need to be able to sleep at night, so, make sure you understand what and how investments make up your super.”
Okay, it’s time to get my head out of the sand and check up on my superannuation accounts to find out whether my retirement is going to be cruising the world or not.
