Financial advice benefits

Superannuation: Is it time to review your investments?


You may be missing out or taking unnecessary risks if you have a set-and-forget strategy for your super.

A lot can happen between the time you start your first job and the time you retire. From building a career, buying a home and raising a family to dealing with setbacks such as redundancy or divorce, life doesn’t stand still and neither should your investments.

In all likelihood, the investment choice you made at age 25 may no longer be appropriate at age 45 or 55. Or you may not have made an active choice, opting for your fund’s default option instead.

In most cases, the default option is a ‘balanced’ portfolio of growth and conservative assets. The mix of investments is chosen by the fund manager to suit the average fund member who might be anywhere from 18 to 65 years of age.

The problem with this approach is that we all have a slightly different appetite for risk and different financial circumstances. What’s more, these things are not set in stone but can and do change as you progress through life.

Check the menu

To make sure your super suits your current needs, start by checking how your money is invested and then compare this with what else is on the fund’s menu.

All super funds have a range of investment options for you to choose from. These vary according to the kinds of assets they hold. Your choice will depend on the amount of risk you are willing to take and the return you can expect to make in the long run.

Most funds these days offer an a la carte menu of single asset options such as Australian shares, international shares, sustainable shares, property and fixed interest, which you can mix and match to suit.

Alternatively, you can choose from a selection of ready-mixed options to suit different risk profiles. Different funds use different labels, but according to ASIC’s MoneySmart website there are four broad categories:

  • Growth options typically hold around 85% of their funds in shares and property with the balance in cash and fixed-interest investments. High growth options can have up to 100% in shares and property. Average returns are higher over the long term – typically several percentage points above inflation - but the ride may be bumpier along the way. Losses tend to be higher in bad years and you can expect a loss in four or five years out of every 20.
  • Conservative options have around 70% in low growth, low risk cash and fixed interest with the balance in shares and property. Average returns are lower than growth options over time but there is less risk of loss in any year.

  • Cash invests in short-term deposits with Australian institutions which offer relatively low, stable returns and no risk of loss. The risk is that returns won’t keep pace with inflation.

  • Balanced or default, option may hold anywhere between 60 and 75% of its investments in shares and property with the rest in cash, bonds and fixed interest. Average returns over the long run will be a little less than the growth option but higher than conservative and cash options.

The balanced option is designed to suit most of the people most of the time, with above average returns for below average risk. But there are other ways to manage risk while maximising returns over the course of your life.

A matter of time

The thing to remember about risk in investment, as in life, is that time often heals wounds. If you have 20 or 30 years left to work and save, you may consider taking a little more risk than someone with less than 10 years till retirement. That’s because you have more time to recover from the swings and roundabouts of global investment markets.

Time can also eat away at your savings if you invest too conservatively. That’s because inflation reduces the buying power of money over time. So, those with at least 10 years to retirement may consider keeping a substantial portion of their retirement savings in a growth or balanced option.

The argument for reducing your investment risk grows stronger as you near retirement and have less time to recover from a market downturn. Even so, people entering retirement nowadays may still have up to 30 years to plan for. Depending on your appetite for risk, it may be appropriate to keep some money in growth assets to avoid depleting your capital too quickly.

Just because super is a long-term investment, it doesn’t mean it should be filed away in a drawer until you retire. Given that many of tomorrow’s retirees can look forward to living well into their 90s, the reward for taking an active interest in your super is that your savings are more likely to last the distance.

Want to know more?

Speaking to a financial adviser can help you identify what mix of investments are appropriate for you. An adviser can work with you to assess your circumstances and invest accordingly to your needs. If you would like to speak to a financial adviser about your superannuation strategy please contact us today on (08) 8372 7826 for a free financial health check.

Financial Advice: Costs vs Benefits


Most people delay or don’t seek advice about their finances until much later in life. Many people feel like you need to have a large lump sum of money to invest or be ready to retire to benefit from financial advice. This could not be further from the truth, and in some cases people wait too long or wish they had sought advice years before they actually had, especially after seeing the benefits it can bring.

What if I told you it didn’t cost you anything but a couple hours of your time to sit down with an adviser who can look at your current situation and help you identify a way to potentially save you money in tax, grow your savings faster, reduce your debts more quickly, buy a property or purchase that new car? Benefits can be seen in all stages of life by seeking advice and the sooner you start, the smaller the sacrifices are to meet the same objective.

It doesn’t matter if you’re a young professional looking to maximise savings to buy your first home, a young family looking to provide for your children’s education, or a couple in retirement wanting to make their money last; there are benefits for everyone who seek financial advice. Often the benefits can outweigh the cost in the first year alone.


Our fee structure is set on a fee-for-service basis which means after the free initial consultation, we agree on a price for the advice based on the amount of time it will take to research and prepare a strategy that is tailored to your needs. If you decide to proceed, we construct the advice into a report detailing proposed strategies and options of products from different providers along with complete disclosure of costs for each option.

In the next meeting we will go through the report and field any questions you may have in regards to the advice proposed so you can make informed decisions on the strategies and products presented for your particular circumstances.


In some cases the cost of the advice is less than the benefits people see within the first year. Our clients often tell us they wish they’d sought advice years before because they would be in a much better position now. These benefits include maximising savings, reducing the amount of tax you are required to pay through tax-effective strategies, paying off your mortgage sooner, growing your investment portfolio, paying less for your insurance, or just having a sense of confidence knowing you're on track to realising your financial goals.

If you would like to find out more about how we can help you, contact us to arrange a free consultation.