Investing for the Long Term

Superannuation is a long-term investment. Many people accumulate their super over the 40 or more years of their working life and when they retire, their super may need to support them for another 25-30 years.

A regular review of your strategy is essential, however it pays to follow some simple rules:

1. Start Early

Enjoy the benefits of compounding interest. The key is to start putting money aside early. The earlier you start, the less you will have to contribute throughout your working life.

2. Diversify Your Portfolio

Many investors diversify their long-term investments over different asset classes including shares, property, fixed interest and cash. The key is not to have all your eggs in one basket.

3. Think Long-Term

Remember that investing for your future is a long-term strategy.  Over the long-term, shares have historically outperformed other asset classes.

4. Avoid a Knee-jerk Reaction After a Downturn

Reacting to downturns by selling off investments could lock in your losses and may not be the best strategy.

5. Get Professional Advice

Everyone is unique, and will have their own preferences and concerns about investments.  A qualified MAP Financial Planner can help develop the appropriate strategy to reach your long-term goals.