It's not your salary that makes you rich, it's your spending habits.
Your Risk Profile
Trying to figure out the right investment option to choose when investing your super savings can be a difficult decision. You have to remember the trade off between risk and return and also that super is a long-term investment, designed to help you save for retirement. It all comes down to the level of risk you are willing to take as well as the expected return on investment in view of your circumstances and investment goals.
Often risk profiles are related to age, life stage or the expected timescale of an investment. At this stage of your life it's likely you'll still be contributing to super for about another 30 years so there is still plenty of time for your super savings to grow. You might decide that short term volatility in investment markets is less important due to the longer timescale of your investment.
It's very important to be comfortable with any risk associated with the investment choice you make.
We've got a couple of options to help you:
- Check your own risk profile
- Get financial advice.
This is a guide only. You should seek assistance from a Quadrant financial planner prior to making an investment decision. They can also help you set out a long-term financial plan so are more likely to attain your future retirement goals.