What type of investor are you?
All investments are designed to deliver a return, but generally, lower risk investments mean lower returns, while higher risk investments generally mean higher long-term gains. It’s important to consider how much risk you are willing to take, in order to achieve a return on your investment.
Here are some questions worth asking yourself.
1. What type of investment suits you?
Do you prefer a safe investment, even if it means a consistently low return? Or are you happy to experience period of negative returns if it means your long-term gains will be higher? Try our Investment risk profiler to see how much risk you're comfortable taking when it comes to investing your super.
2. How long do you expect your money to remain with LGIAsuper?
The longer the investment timeframe, the more risk you can tolerate, as you have time to recover from short-term fluctuations. And remember, even after you retire, your investment might have to last another 20 to 30 years.
3. How much income do you need in retirement and are on you track to meet your goals?
A higher-risk option may get you to your retirement goal sooner, but you need to be comfortable with negative returns over short periods.