Markets can be volatile in the short-term and it can be tempting to switch into a more conservative investment option. But if you’re thinking about switching, there’s a few things to consider first. †

Don’t crystallise losses

You may – understandably – be tempted to switch investment options when you see the market drop, however you should consider your long-term investment objectives. Switching at the wrong time could mean you miss out on gains when the market bounces back. This is known as “crystallising losses”. 

For example, analysis undertaken in April 2019  from research house SuperRatings has shown that super fund members who switched investment options during the depth of the Global Financial Crisis in 2009 would be approximately $17,700 worse off today than members who waited out their long-term strategy^.

How long will your super be invested for?

Super is a long-term investment, so you need a long-term strategy that’s aligned to your needs. Even if you’re nearing retirement your savings could still be invested for another 20+ years. 

It’s normal for markets to have cycles of ups and downs – consider if you have time to ride out the short term bumps and make the most of any gains when the market bounces back.

Is the option you’re invested in right for you?

Rather than reacting to market volatility, you should consider your investment objectives and the level of risk you’re comfortable taking on. We call this your “risk appetite”. 

If you didn’t make an investment choice you’re in the MySuper investment option which is age based and the risk level of the investments decrease as you get older.

If you want to discuss your investments within TelstraSuper you can speak to an Adviser from TelstraSuper Financial Planning over the phone at no additional cost. They can work through some questions which will help determine what option you may be suited for.  You can speak with an Adviser by calling 1300 033 166 or filling out our online contact form.