Seek advice, says Sherry
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Superannuation fund members thinking of changing their investment settings have been urged by the Minister for Superannuation and Corporate Law, Senator Nick Sherry, to first seek professional financial advice.
Sherry has warned superannuation fund members that they risk not only short-term losses but also tax consequences if they switch to more conservative investment settings in the current market downturn.
Addressing a Global Pensions Conference in Sydney, Sherry said it was vital that superannuation fund members understood the long-term focus of superannuation as an investment vehicle.
What is more, the minister said that those people considering changing their investment options in the current climate should seek the advice of a planner.
"Switching to conservative investment options or deposit products could result in short-term losses, and there may be tax consequences," he said.
"As well, adopting such a strategy would mean that members are not in the market to experience the gains when the market recovers.
"So, I would encourage superannuants to seek professional financial advice before they make decisions about their situation," Sherry said.
AUTHOR
Mike Taylor
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