"I see my role if needed as a financial mentor but one who can show warmth, practicality and empathy."
I recently sat down and had a chat with a young woman who had just started her first job after university. This is a very smart, highly educated and professional woman in a well paid role.
She wanted to know what she had to do about her super and what her choices were. I started to speak with her about asset classes and realised that she didn’t understand what I was saying.
It was not that she couldn’t understand but that nobody had ever shown her. Below is a very simplified list of what the asset classes are in what I think of as plain language,
Cash-this is similar to the money in your bank account such as a higher saver account or a term deposit.
Fixed Interest-think of this as you lending money to the government (government bonds), they will pay you an amount to invest in the country.
Australian Shares-this is reasonably straight forward, think of buying Telstra, Commonwealth Bank or BHP shares.
International Shares-think of investing in Microsoft, MacDonald’s or Target.
Property-this is not the same as buying your own home or an investment property but your share in commercial property such as a bridge, high rise building or warehouse.
You can invest in all or some combinations of these in your superannuation fund depending on how comfortable you are with the risk involved.
I hope this helps you understand your super a little more.