- 2015
- Transitioning support for auto supply chain companies
- Innovation in Australia
- New FBT entertainment cap introduced
- New reporting obligations for multinational companies
- Unlocking super
- The truth behind business failure
- 2015 Distinguished Family Business of the Year
- Melbourne plan refresh: The 2050 metropolitan planning strategy
- Tax alert: GST & remote housing accommodation
- The Federal Government's Tax discussion paper released today
- New fees hurt developers’ bottom line
- Payroll Tax Rebate – Action before 23 November 2015
- New South Wales State Budget 2015-16
- Western Australian Real estate & construction update
- Victoria Real estate & construction update
- South Australia Real estate & construction update
- Queensland Real estate & construction update
- New South Wales Real estate & construction update
- State revenue offices and the ATO information sharing
- Redundant corporate entities?
- Streamlined process for new business applications
- Imported building materials under scrutiny
- Tightened lending rules threaten industry growth
- Any GST hike must be offset
- New PM appoints Minister for Cities
- Reforming Australia’s Federation and Tax System
- A message from our Global Head of Real Estate & Construction
- Adelaide CBD property outlook – Key considerations
- The deadline is looming for the Exploration Development Incentive
- Valuing Employee Share Schemes (ESS) – Impending Tax Changes
- Queensland State Budget 2015-16
- New restrictions on entertainment salary packaging
- NADA conference day three
- NADA conference day two
- Do you have the keys to NADA 2015? Day 1
- South Australian State Budget 2015-16
- 27 Pay Periods in 2015/16
- Corporate simplification and solvent liquidations
- Fringe Benefits – Hidden FBT and deemed dividend issues
- NSW Payroll Tax Rebate
- SuperStream compliance
- Should I maintain my SMSF?
- Art and collectables as alternative investments
- Tax alert: GST ruling published
- Western Australian State Budget 2015-16
- New funding opportunities for Australian food & beverage companies
- Super fund investment choice – What are the options?
- Nominating beneficiaries for your superannuation benefits
- Superannuation consolidation
- Victorian State Budget 2015/16
- Encouraging innovation in Australia’s Life Sciences and Biotechnology industries
- Fraud in focus: Fraud and corruption in Banking and Financial Services
- Tax alert: Refunds of excess GST
- New Employee Share Scheme Bill Introduced
- SuperStream employer webinars
- Staying vigilant against fraud
- Tax Alert: Are you meeting your employment tax obligations?
- Tax alert: No change to R&D tax offset rates
- Act now to be ready for FATCA
- Tax alert: Changes to Employee Share Scheme Tax Laws
When you first join your employer superannuation plan you will be invested in the funds default investment option.
Your superannuation fund will have created a MySuper approved default investment option which has either a diversified strategy or lifecycle strategy based on your year of birth. All superannuation funds offer some level of flexibility to tailor your investment allocation based on your instructions.
When considering your investment options it is important to consider your age, investment timeframe, risk and reward profile, past investment experience or by reviewing past performance and understanding the investment options objectives.
In addition to the default option most funds provide a diverse range of investment options with a different mix of growth investments (i.e. shares and property) and defensive investments (i.e. fixed interest and cash). The most common options are Defensive, Moderate, Balanced, Growth or High Growth. In addition a number of funds have included specialist or boutique managers to cater for specific needs (i.e. active manages, index funds and socially responsible management). These investment managers invest into specific asset classes or countries and might use financial instruments to generate returns or reduce risks.
In recent years we have seen a number of superannuation funds add direct investments like term deposits and direct Australian shares to their investment menus, in order to compete with Self-Managed Superannuation Funds (SMSF).
It is very important to be aware that different options have different risks and that you should be conscious of these risks when considering your performance expectations. In addition these options will normally have different ongoing management fees to the default investment option. Past performance has proven that short term volatility is greatly offset by longer periods of consistent growth when it comes to choosing superannuation investment options.
In summary, the investment option you choose will have a significant impact on the quality of life you will enjoy during your retirement.
Chris Chan, Head of Superannuation, T +61 3 8663 6292, E chris.chan@au.gt.com
