Super members need ‘proper advice'
Without proper financial advice, Australian super members are at risk of pursuing an overly conservative strategy that would be “self-defeating”, says Chan & Naylor.
Chan & Naylor managing director Ken Raiss said it is important for Australians to seek professional advice and not rely on a “set and forget” approach to managing their superannuation.
“If you are a Gen X (born between 1965 and 1980) or younger, then electing to follow a wholly conservative super investment strategy will be self-defeating,” Mr Raiss said.
“The important point is that you need a strategy based on sound independent financial advice,” he said.
“The big mistake many people make is in only speaking to one adviser who in all likelihood is aligned with one of the big four banks or a product manufacturer, or worse still, not having a strategy at all,” he said.
Mr Raiss also pointed out that depending on the size of a member’s portfolio they might be able to leverage some funds for shares or property investment so far as it is “part of a prudent strategy”.
“With the welfare safety net already under severe strain, more Australians must be encouraged to prepare for an independent retirement, and being able to purchase and retain an asset that grows in value over the next 30 years within super is an excellent way of achieving this outcome,” Mr Raiss said.
“However, many of us opt instead for an overly conservative strategy,” he said. “Annuities, for example, by their very nature are constrictive, but at least you know what you are going to get, which is not necessarily very much.”
Lifespan hires national practice manager
Non-aligned advice licensee Lifespan Financial Planning has appointed a new nati...
Westpac names head of new business division
Westpac has appointed a new chief executive of its merged business division seve...
Shaw and Partners to acquire advice firm with $650m FUA
Wealth management firm Shaw and Partners has announced it will acquire a Western...