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Super - Growth or Conservative

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Intrigue, 20th Aug, 2010.

  1. Intrigue

    Intrigue New Member

    Joined:
    17th Aug, 2010
    Posts:
    1
    Location:
    QLD
    Hello, I need some guidelines, advise or recommendations reguarding my superannuation fund.

    I currently hold 40k super with sunsuper. I realise this isn't very much but every dollar counts and if I am wise my 40K will become much more one day. At the start of the GFC I noticed that my funds we diminishing, only slowly but I was making a loss. I paniced a little a quickly changed my funds into a conservative acc. This turned out to be not such a good idea as has I have left it alone I would have recovered my funds and more however as I went conservative I did not get all my funds back.

    Upon exploring this situation and talking with some friends I realised that I had been thinking rather narrowly. I was thinking risk minimilisation and had not at all considered growth potential. I quickly changed my funds into a growth acc.

    However will all the talk about China and the US at the moment I am beginning to think the share market is likely to take another hit and as such I should go back conservative for 6 months. I should change back into the growth soon after the next fall?.

    I am only 32 so I realise this may impact peoples thoughts.

    Please let me know your thoughts on what I should be doing?
     
  2. Johny_come_lately

    Johny_come_lately Well-Known Member

    Joined:
    1st Jul, 2009
    Posts:
    703
    Location:
    SE Queensland
    Hi Intrigue

    Trying to choose between growth and conservative is a bit like trying to time the market. That is, trying to predict the future. Nobody can do it.

    We all know that markets will rise over the long term. And super is long term. So plan long term.

    Saying that however, I lost all my super as I was in an ultragrowth option. You live and learn.





    Johny.
     
  3. Superman

    Superman Well-Known Member

    Joined:
    6th Nov, 2007
    Posts:
    343
    Location:
    Gold Coast, QLD
    Intriuging question,

    InvestEd is for education, but you seem to be some specific advice that we can't really give you.

    Anyway, a couple of points:

    - You are 30ish years to retiremement
    - Growth and high growth investment options are long term strategies
    - Long-term is at least 5 years but more like 10 years
    - Inflation will eat into the value of your money - so in real terms with a conservative option you may actually end up going backwards
    - You have plenty of time to ride out the ups and downs of the market

    I hope this gives you some direction. Otherwise keep reading / educating yourself and seek paid and competent professional advice if necessary.

    Good luck :)

    SM