Investment
Insurance
Superannuation
Wondering why your super may not be so healthy right now and looking for help to make sense of it?
With share market volatility a part of daily news, you might be thinking that super is not the best way to save for your future. But even in these markets, super is still the best long term option for saving for your retirement. And the range of tax benefits attached to super make it an even more attractive.
Share markets always operate in cycles and after five years of strong performance share markets have entered a volatile phase with big falls and recent jumps. When markets fall it's important to stick to your long-term strategy. Market volatility may lead to a short-term drop in your super savings but history shows that when markets come back you are likely to recover those losses.
You should also remember that super offers a range of tax benefits that other investment options don't have. For instance:
As a long-term strategy super remains one of the most effective ways to save for your retirement.
If you'd like to know more talk to your financial adviser or read Tips for investing in volatile markets (175kb PDF).
Many of us don't realise but investing in cash is an option that's already available through super.
When you think of super it's important think of it not an investment asset, but as a framework that holds your investments. Super funds hold a broad range of investment assets which can include cash, property, shares and fixed interest funds. When you invest in super you choose your investment strategy from the range of investment funds your super fund offers and that can include cash.
Investing in cash through super also has tax benefits. The tax you pay on contributions and earnings through super is a maximum of 15%, unlike most other investments which can be taxed up to 46.5%.
If you want to put your money into cash why not talk to your financial adviser about investing in cash through super. Your adviser will help you to choose the best option so you can meet your long term lifestyle and investment goals.
When you think of super it's important to think of it not as an investment asset, but as a framework that holds your investments. Super funds hold a broad range of investment assets that can include cash, property, shares and fixed interest funds.
When you put money into your super fund and choose your investment options you are actually buying units in these funds (if the super fund is unitised). The number of units you receive depends on the price of the units on the day you buy them. The price will vary daily according to changes in the market.
For example, if you invest $100 at a unit price of $1 per unit you own 100 units in the fund. As the unit price goes up the value of your investment goes up, however if the unit price goes down the value of your investment goes down.
As an investor, it's only natural to be concerned about how these fluctuations might affect the value of your investments. It can also seem like you've lost money and it may be tempting to move money to a less risky asset class when markets are falling.
But history shows that investors who stick to their long term strategy tend to come out ahead. Despite many short-term crises, share markets have historically recovered in several months.
If you'd like to know more talk to your financial adviser or read Tips for investing in volatile markets (175kb PDF).
You can have confidence that your super is secure with ING. ING is a financially strong and profitable business that is well placed to weather the current market turmoil. ING (and our predecessor Mercantile Mutual) has operated in Australia for more that 120 years. We have withstood many changes in the markets (including the Great Depression) and have gone on to create opportunities and grow our business.
Our key focus is to support and provide services to our customers but we are also working to build business across our core markets of superannuation, investments and insurance.
We are a leading and trusted brand in financial services, being the second largest life insurer and the fifth largest retail fund manager in Australia.
Our goal is to help Australians grow and protect their wealth and we are here for our customers through all market cycles. You can find out more about ING from our website or from your financial adviser.
While no one can predict what will happen in financial markets it's important to remember that there will always be movements. In the last six months we have experienced volatility, but ING as well as economic and financial experts believe that the markets will return.
History has shown us that markets will always fluctuate. But it has also shown us that the longer you stay invested, the less affected you are by short-term volatility.
For market updates, expert opinion and economic webcasts take a look at ING's Market insights page. The information is designed to keep you up to date and help you make sense of what's happening in the markets.
This has been provided for general information purposes only. It does not purport to recommend any particular adviser or provide you with financial advice. In addition to seeking financial advice, potential investors must always read the Product Disclosure Statement for the relevant product before making an investment decision.
