The misconceptions that surround superannuation often lead it to being down the list in terms of preference for investors. As a result of this misunderstanding, we often come across people who claim not to trust superannuation for fear that they could “lose everything”.
Superannuation is not an asset such as cash or shares; it is merely a structure that owns these assets. It is the careful selection and monitoring of the assets in your superannuation fund, such as shares, property and cash, which will help protect your money.
Think about superannuation as an empty car shell. Without an engine you will see no performance. However, the empty car shell still exists. To get the performance you then insert an engine, which in the case of superannuation, is represented by the assets within the fund.
Cash is akin to the scooter engine, low and steady performance, cheap to maintain but it’s not going to get you anywhere in a hurry. Shares on the other hand are more akin to a V8 engine, powerful performance that is likely to lead to getting you to your destination quicker; however there may be bumps along the way because of the complexities involved.
As Financial Planners, our role is to provide a tailor made “engine” that suits who you are as an investor and also provide you with the opportunity to achieve your goals.
If you would like to give your “engine” a tune up to ensure you are on the right track with your superannuation, please contact our office on (07) 3397 7315.
