SMSF<\/a>), then you\u2019re in control \u2013 you decide where the money goes. But if you\u2019re with a retail or industry fund, your fund manager will likely assign you to a “balanced” portfolio by default. This is the typical go-to for most fund providers and usually splits your money between safer, more defensive assets and riskier, higher-growth ones.<\/p>\n\n\n\nNow, let\u2019s talk about defensive versus growth assets. On the safe side of things, you\u2019ve got cash investments and government bonds. Think of these like term deposits or US Treasuries\u2014solid, low-risk, and pretty much guaranteed to preserve your capital. But, and it\u2019s a big but, these defensive assets aren\u2019t likely to make you rich. They can provide security, but not a whole lot of growth.<\/p>\n\n\n\n
On the flip side, you\u2019ve got growth assets like shares and property. These are riskier, no doubt. They can be volatile, subject to market swings, and there\u2019s no guarantee you\u2019ll make a profit. But here\u2019s the catch: over the long term, these assets tend to provide the best returns. That\u2019s why balanced funds typically mix the two \u2013 about 60% growth assets and 40% defensive assets.<\/p>\n\n\n\n
Why More Growth Assets Might Be Right for You<\/h2>\n\n\n\n
Here\u2019s where things get interesting, though: if you\u2019ve got more than ten years until retirement, sticking too heavily to the \u201cbalanced\u201d approach might not be your best bet. Sure, shares are volatile \u2013 we\u2019ve all seen the crashes, the market corrections, and the dips. But historically, the stock market tends to recover from these crashes fairly quickly. In other words, if you’re not about to retire, there’s a good chance your super is better off invested mostly in growth assets.<\/p>\n\n\n\n
So, let\u2019s be real here: if you\u2019re aiming for a happy retirement, the goal should be to have as much capital in your super as possible by the time you\u2019re ready to retire. The more your super grows, the more flexibility you\u2019ll have down the line. And if you\u2019re still a decade or more away from retiring, leaning into shares and other high-growth assets might be a good way to supercharge your super balance.<\/p>\n\n\n\n
Adjusting Your Portfolio as You Approach Retirement<\/h2>\n\n\n\n
Of course, this is all a bit of a generalization. Everyone\u2019s situation is different, and your needs might vary depending on your personal goals, risk tolerance, and financial circumstances. So, before making any changes to your super, it\u2019s always a good idea to have a chat with a financial adviser who can guide you based on your unique situation.<\/p>\n\n\n\n
But one thing\u2019s clear: a \u201cbalanced\u201d superannuation<\/a> strategy might not be the best fit for everyone. Don\u2019t be afraid to reassess your approach and adjust it to match your long-term goals. A little tweak now could make a big difference to how much wealth you\u2019re able to build for a comfortable retirement.<\/p>\n","protected":false},"excerpt":{"rendered":"Wondering if your superannuation is working hard enough for you? Learn the key assets to include in your fund and why focusing on growth can lead to a wealthier retirement.<\/p>\n","protected":false},"author":14,"featured_media":105981,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-105978","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retirement","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/105978","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/comments?post=105978"}],"version-history":[{"count":2,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/105978\/revisions"}],"predecessor-version":[{"id":106014,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/105978\/revisions\/106014"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media\/105981"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media?parent=105978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/categories?post=105978"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/tags?post=105978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}