The Real Job of Your Super

The biggest risk in your super is not what most people think.
Most people assume being conservative means being safe. It does not.
Having too much of your super in conservative assets means your money is quietly losing purchasing power every year to inflation. You do not notice it happening. It is a slow burn. A death by a thousand cuts. And by the time you realise, ten or twenty years have passed and there is nothing you can do about it.
The real job of your super is to grow faster than the cost of living. To do that you need exposure to growth assets like shares and businesses. And to do that you need to accept short term volatility.
That is the trade. Short term discomfort for long term purchasing power.
If you have not reviewed your asset allocation recently, that is the place to start.
General advice only. Please consider your personal circumstances or speak with us before acting.
Robert Goudie is an Authorised Representative (No. 235974) of Consortium Private Wealth Pty Ltd (AFS Licence 495401)