Recovering From The Stock Market Horror
20 October 2008
Personal superannuation earnings have been hit hard by the world financial crisis, so you may need help in recovering from stock market losses that have reduced your personal superannuation account balances. You need to do more than preserve what is left, you must also get your personal superannuation fund gaining again by making cost cutting decisions and choosing a superannuation fund that has a good balance of risk to reward.
The first step to recovery is to avoid going into panic mode. In fact, remove the entire concept of a panic mode from your mind. If you place all of your funds into conservative investments now, how will you know when to put them back into a more growth oriented investment plan? If you are nearing retirement, then you may want to consider doing this to make sure your personal superannuation savings are preserved if you intend to take out a lump sum, but those looking for an annuity will need to makes decisions that allow their personal superannuation to continue growing for some years to come.
The second step is to look into choosing a superannuation fund with a different organisation in order to save on personal superannuation costs. Master trusts will often be expensive, while an industry superannuation fund can be cheaper and a self managed superannuation fund can be very cheap in terms of management fees. Saving on fees can make a massive difference to your personal superannuation over time, so moving to a less expensive super fund may help you to recover from the problems of the last year or so. Nevertheless, keep in mind that if savings are not matched with a good rate of growth in your personal superannuation, you will not be in the best position to save the most for a comfortable retirement.
Please click on our ESUPERFUND banner if you are interested in starting a self managed ESUPERFUND superannuation fund to maximise your personal superannuation.
