6 Insights to Keep your Super in Perspective

PRLog (Press Release) - Dec 16, 2008 -
While it's natural to be nervous about your super returns when financial markets are uncertain, it's important to stick to some key insights to help you keep current market fluctuations in perspective.

Here are six tips to help you keep your super on track.

1. Take comfort from history - the long-term trend is up
Over the last twenty years or so, there have been at least ten major events that have impacted the Australian share market, including the Wall Street Crash in 1987. While each of these events resulted in a period of uncertainty, the market has always recovered.

Importantly, despite short-term market uncertainty in the past, over the long-term the general trend of share markets is upward. Australian shares, for example, continue to perform well, up 106.6%1 in the last ten years.

2. Remember, super is a long-term investment
(http://www.bt.com.au/investors/our-products/superannuatio...) Superannuation is a long-term investment designed to grow over your working life, so it calls for a long-term and calm approach. If you're at the start or in the middle of your career, you could have up to 30 years to keep investing in your (http://www.bt.com.au/investors/our-products/superannuation/superannuation.asp) super and are well placed to ride out the market ups and downs.

3. Don't react to short-term market movements
(http://www.bt.com.au/investors/investment-education/inves...) Investment markets move in cycles, so it's difficult to forecast when they'll rise or fall. Moving your money in and out of the market during a downturn means you could potentially miss out on any positive bounce gained in a strong market recovery.

4. Make sure your investment option suits your risk profile
Your investment choices with BT are organised into risk categories - stable, conservative, moderate, dynamic and aggressive. Taking on more risk could mean higher long-term returns, but more risk also means enduring more ups and downs in the short-term.
Before choosing how you'd like your super to be invested, you should consider how much risk you're prepared to take and your investment timeframe.

5. Get advice from a qualified source
A financial adviser can help you make decisions around your super, while taking into account your life stage, needs, objectives and attitude to risk. If you don't have a financial adviser, the Financial Planning Association can help you find one with their 'Find a Planner' service at www.fpa.asn.au/findaplanner.

6. Stay informed
It pays to stay informed about your (http://www.bt.com.au/investors/investment-education/investment-education.asp) investments and what's happening in the market. Keep returning to BT Insights for the latest on what's driving the market and strategies for investing during uncertain times.
[1] Returns measured by the S&P/ASX 200 Accumulation Index to end November 2008.

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