Invest for growth
Learn about investing
Mine Wealth + Wellbeing offers a range of investment options to help you meet your financial goals.
How investing builds wealth
- Investment returns: Investing offers the opportunity to earn returns in exchange for taking some risk. The higher the risk, the higher the expected returns over the long term. That’s why shares generally provide higher returns than bank interest.
- Compounding: Compounding occurs when your returns are reinvested and generate their own returns. Importantly, the sooner you start, the more time you have to benefit from compounding.
The risk and return trade off
Typically the greater the investment risk, the greater the potential return over the longer term.
Most pensioners invest in a mix of growth and defensive assets to ensure their income stays regular but capital also grows over time.
Aren’t growth assets too risky?
To help your retirement savings last as long as possible, consider investing part of your pension in assets that have the potential to earn a higher return, such as shares and property. Remember, you could spend 20 or 30 years in retirement. This gives you some time to ride out the ups and downs of growth asset returns.
How much of your pension you invest in growth or defensive assets can have a large impact on how long your money lasts.
The chart below shows how earning an extra 2% return a year on a $450,000 pension investment can make your money last two years longer.
Only you can decide if the likely rewards are worth the risk
A stable strategy involves investing more of your pension in bonds or cash. This may suit people who need greater security. For example, if you’re withdrawing your entire pension in less than five years and want more certainty about how much money you’ll have.
Standard risk measure
Find out more about measuring investment risk.
Managing risk through diversification
Investors often make the mistake of investing in last year’s best performing asset class, but this can backfire. Last year’s winner can often be next year’s loser. That’s why it’s important to diversify your investments. This means not putting all your eggs in one basket, but ensuring you spread your investment across different asset classes.
Diversification works because positive returns of some investments make up for negative returns of others. How much you invest in each asset class depends on your investment time frame, risk tolerance and investment goal.
Where should you invest your money?
Each one of us has different needs and attitudes when it comes to investing. Obviously, we would all like to make healthy returns, but there are other factors to consider, such as how long you’ll spend in retirement and the risk you’re willing to take.
If you have better things to do than worry about your investments, you can remain confident that we’ll look after your money through our Capital Guarded investment option, which aims to meet the unique needs of people in retirement.
Our members say
From what I read you're one of the top super funds for investments.-