Skip to main content

Markets are going up! What does this mean for my super?



On January 13 this year I wrote a post The markets are down! What’s going to happen to my super? What do I do? And here we are a little over 2 months later and the contrast could not be greater.  Welcome to the world of investing!

So what do all these numbers mean and how does it impact on my super? Well, for the majority of people, their superannuation has some level of exposure to Australian stock markets.  To get an idea of how the market is performing, you can simply follow one of the indices such as the All Ordinaries Index or ASX 200. 

Without getting too technical, these are a basic measure of how the majority of the companies on the Australian stock exchange perform on average on any given day.  Normally reported on the news at night you’ll hear statements like” the All Ords went up half a percent today”.

On Feb 12 this year the All Ordinaries sat at around 4800 points.  It’s currently sitting at 5240 points which means an increase of around 9%.  That’s an annualised return (i.e. if it keeps going like this for 12 months) of over 50%.

Of course, markets are unlikely to perform at this rate on a sustained basis however to put it in perspective, our market hit it’s all time high of 6873 points in November 2007 just prior to the Global Financial Crisis.  At that point it dropped and has been slowly recovering ever since.  As at today the All Ordinaries is currently sitting at around Feb 2010 levels and to get back to where it was in 2007 it needs to go up by another 31%.

The exposure your superannuation has to Australian stock markets will very much depend on your fund selection, time horizon and risk profile.  For many of my clients, their long term time horizon and high growth investor profile has meant that the use of internally geared funds has been appropriate.  Since Feb 12th to date, these funds have gone up over 20% which is a strong result.

Either way, the most important thing is that you review your superannuation regularly.   You may be missing out on significant opportunities by simply ignoring your super and hoping for the best.  Take control of your super, for many it will be their biggest asset in life so it pays to get it working for you.

Have a safe an Enjoyable Easter and give some thought to contacting me after the break for an informal chat about your super and how to get the most out of it for you.

Andrew O’Brien and Hindsight Group Pty Ltd t/as Hindsight Wealth Pty Ltd (ABN 88 168 442 528) are Authorised Representatives of Synchron AFS Licence No 243313.  

Andrew O'Brien. FINANCIAL ADVISER. P 07 3852 3025  0403 156 625  E andrew@hindsightwealth.com Suite 4 / 30 Florence Street, Newstead QLD 4006.  

View our Privacy Policy here. 




Comments

Popular posts from this blog

What will 19 hold for you?

Most of us are starting to think about getting back into work mode – or perhaps you are back at work already.
Don’t worry, this is not going to be one of those “let’s look back over the last 12 months” chats where we remember which celebrities are no longer or who won major sporting events.
What should you expect from the next 12 months? Well, nobody knows.  However, there is one certainty.  Markets will go up and markets will go down.  
Consider this.  The Australian equities market is still approximately 18% below where it was 11 years ago so there’s plenty of upside just to get back to where it was.  In terms of your superannuation, you need to consider your time horizon, i.e. how long will it be invested for before you can access it.
For a 35-year-old, they face another 30 years before they can access their super at age 65. Not only that, once they do retire at 65, they’re not going to take their super and spend it in one go.   They’re going to use it to produce an income in retiremen…

When Socks and Jocks don’t cut it anymore.

We have a solution to avoid the old favourites: socks and jocks this Father’s Day.  As this weekend is Father’s Day, the focus should be on Dad.  You can purchase the actual book or the digital copy so Dad can access year - round savings from his smart phone.  Part proceeds from your purchase, also helps a local Brisbane charity: Be Uplifted Inc Breast Cancer Charity – so everyone wins! Click here to purchase Dad his Entertainment Book subscription. Another gift you could give Dad is encouragement. To encourage Dad to have a conversation with a financial adviser about his super and insurances. Why? Maybe Dad has started a new job or had a promotion. Maybe Dad is nearing retirement? When our lifestyle changes or work situation changes, it affects your super + insurances. Reviewing these regularly will make sure Dad stays on track. Perhaps you know Dad has a few super funds hanging out there from previous jobs. This can affect a few things – especially Dad’s back pocket and can include inap…
Before you get excited (or not), I don't offer Pet Insurance, however I have received many questions about it.  So I thought I would offer some thoughts to consider for your independent pet insurance research.
Australians are a nation of animal lovers.  According to the Australian Companion Animal Council, we have one of the highest incidences of pet - ownership in the world!
Dogs and cats are our favourites; around 36% of Australian households own a dog, and 23% own a cat.  We're familiar with the companionship pets bring, and the social interaction they foster, but there are other benefits too:
Lowered blood pressure and cholesterol;Increased physical activity;Strengthened immune system and reduced incidence of allergies andChildren learn responsibility, empathy and respect.
When considering a pet, you expect costs like food, bedding, the annual vet visit and so forth, but there are other costs you may not have thought about.

Let's start at the beginning.  Those purchasi…