Changing risk options on super
Q.
I am aged 63 and plan to retire at age 65. I am in the high
growth option of my super fund which has had a 10% negative return
this year to date. I would like to change to a lower risk option.
Should I wait until results returns to positive?
A.
Don't forget you may well live for another 25 years and
switching from the growth option now, will turn a paper loss into a
real one. I do hope that at least three years expenditure is in the
cash type area, so you will have time for the growth component to
recover.
Each week financial advisor Noel Whittaker answers your
questions.
