Why super is Considered as a long-term investment

Why super is Considered as a long-term investment cantoraccounting.com.au

[SUPERANNUATION FUNDS AND INVESTMENTS ]

Superannuation funds and investments help you in building retirement savings so it is a smart strategy to invest in the right mix of assets and keeping a longterm view is a smart strategy.

What exactly does investing in superannuation means?

We use the phrase saving for retirement very often directly referring to super, but saving is just putting money aside for a time to use on a specific purpose later. While investing, we just don’t keep it aside, we buy something (referred to as an asset) on the premise that later one will be worthy, so we can outpace the cost of living.

Inside super and anywhere else maximum of the principles of investing are the same. Superannuation funds and investments is simply a vehicle that in an environment holds your investments that the government treats more favorably for tax purposes than money outside of super.

Your money is loaded with other people’s superannuation money to buy and hold assets. In two ways assets can offer profit: either they may grow in resale value (called capital growth) or they may provide income such as rent or dividends.

In case you have never made any active selection about what your super is invested in, it would then have been invested on your behalf until you’re ready to take more control, but more on that later.

Long-term investments like superannuation depend on the amount of time your investments are in the market. It was never about trying to beat the share market, predicting its movements, and buying and selling accordingly.

For life in retirement Superannuation funds and investments is there to help you build wealth, not now. Selling at the wrong time can be costly no matter what type of investment it is. When the annual statement arrives most people only look at their superannuation balance. So, in case it’s been a year that’s delivered negative performance returns, we get to know through experience that members panic and in the fear of losing more money their immediate reaction is to cash out investments.