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Video transcript - How BUSSQ invests your money
Welcome back to BUSSQ's Retire Happy series.
Let's run through how BUSSQ invests your money.
In the pre-retirement phase, the BUSSQ Balanced Growth Super investment option is the default option for most of our pre-retire members. This option is designed for members who want to achieve growth, stay ahead of inflation, as well as not requiring access to their funds for 5 years or more. This investment option is diversified across different asset classes to help manage risk.
As you approach retirement and become closer to needing access to your super, you should review your investment selection. This is due to having a shorter investment time frame than the suggested 5-year minimum for the BUSSQ Balanced Growth Super option.
You should talk to an adviser to see which investment option is the right for you in the leadup to retirement.
BUSSQ invests your superannuation in both domestic and international companies. Some names here should be familiar. Investing in Australian and international shares aims to improve your growth and diversify across a broader array of investments.
BUSSQ has a long history of building retirement savings for its members. It's always important to look over a longer time period to assess the performance of different investment options.
This table shows BUSSQ's returns for the super and income accounts over the 1, 3, 7, and 10 year period. Past performance is not an indicator of future performance.
From time to time, some super investment option returns may vary greatly. For example, if we were to go back to 30 June 2022, BUSSQ's Balanced Growth Super option had a negative return of 4.79, but the year before, to 30 June 2021, the return was over 17%. This is the nature of growth assets. They tend to have a higher return on average than defensive assets over a longer term. But in the short term, they are more volatile. This is why you can be more confident of a positive return over a longer time period, but for a shorter time, it is harder to predict. Investing for the short time frame is riskier and more care needs to be taken when considering your investment selection.
You should review your selection as you approach retirement. As a BUSSQ member, you can obtain advice on the choice of investment options that best suits your risk tolerance and personal financial circumstances.
Join us in the next clip, where we cover the Centrelink age pension.
