How's your financial fitness? Part 1 - Learning about investment

12 Mar 2021

By the time you retire, your super could be your most valuable asset. So having the right information to make your super grow over your working life is crucial.

When we invest, we invest with you in mind. We want to help you have the retirement you deserve, and we want your experience to be as simple as possible along the way.

No two financial situations are the same, so having a “one size fits all” approach to your super just doesn’t make sense. That’s why we offer a number of different investment options to help you achieve your financial goals.

Risk-tolerance

You might have heard the phrase “risk-tolerance” before.

Basically, it means how much investment risk you can handle and this is a big consideration when you’re choosing the right investment to suit your situation.

If you’re just starting out in your career, you could be more open to the idea of your money being invested into a higher risk option that may result in higher returns.

If you’re closer to retirement, high risk might be something you’d like to avoid.

As you grow older and your life changes, your risk-tolerance is also likely to change.

To understand how your money can work for you, here’s three categories of investment options that we offer:

Income-focused option

Our income-focused option is for those who prefer less risk.

It’s aimed at our older customers who are happy with their super situation and want to continue growing their savings at a slower rate but with less risk, as retirement approaches.

Balanced, MySuper option

If you’d consider your risk-tolerance “medium-to-high”, this option might be for you.

There is more risk but potentially higher returns than the income-focused option.

If this option is for you, the minimum timeframe suggested for holding it is 10 years.

Aggressive option

Our aggressive option is aimed at younger customers early in their work cycle, and focuses on generating high returns, for greater risk, over the long term.

The theory behind our aggressive option is that the longer your super is invested, the more time it has to recover from bumps along the way – e.g. if there was a market downturn, younger customers in an aggressive option would be in a better position to recover because of the length of their investment.

My financial fitness - where do I start?

There are a few things to consider straight away if you’re unsure about how you want to invest your super.

Age and risk-tolerance are the big ones.

But for more information, head to csc.gov.au/financial_fitness 

With CSC, you can choose with confidence as we grow your super.

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