Should I stop making voluntary contributions until the sharemarket settles down?
Depending on your situation, now may actually be a good time to either maintain or increase your contributions. You may be able to give your super a real boost by taking advantage of “buying” when the market is low. While the share market is down your contribution is buying more units in your superannuation fund and when the market rises again it means that your units will be valued at a higher price. For example, if you had 100 units and the price of one unit was $1 then your portfolio would be worth $100. If the price of each unit increased to $1.50 then the 100 units you originally purchased would now be worth $150. Also, when it comes to super, there’s “more than meets the eye” as far as your investment goes. In other words, you need to consider tax breaks, and government incentives as well as any investment returns. Keep reading below to find out how you can get the Government to contribute cash to your super account.
