Whether you’re investing for the next 10, 20 or 30 years, history suggests that time is on your side and that the returns from investing for growth are likely to reward the volatility you endure along the way.
Time is on your side
Remember back to when you originally put your investment strategy together? You probably identified some financial objectives that were years into the future. You might have worked out that the appropriate strategy to meet those long term objectives was to invest in growth assets, such as shares. This was because despite any short-term volatility, they are still the a great vehicle to give you the increase in value you need to meet those objectives.Nothing has changed; despite the sustained volatility, growth assets are still an excellent choice for long‑term growth.

When is a crisis not a crisis?
When it happened 10 years ago.

The chart below also highlights the long-term benefits of patient growth investing. Each of the market crises shown below – including the 1987 Stockmarket crash, Tech wreck, Credit crisis and Iraq invasion – were world-changing events that saw stockmarkets plunge and investors wonder whether their capital would ever recover, just as you are probably wondering now. Given time however, companies managed to adapt to the new world order and got back to making money for their investors. They will do so again.

This information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. Because of this, you should consider whether the information is appropriate in light of your particular objectives, financial situation and needs.

How does it work?
There are many important tax benefits associated with investing in super. But to make the most of these benefits you need to understand the different types of super contributions, and be aware of the limits (referred to as ‘caps’) that exist on how much you can contribute to super tax-effectively each
financial year. The two main types of contributions that have a cap are:
Concessional (before-tax) contributions – these are generally made to a super fund by your employer, or if
you’re self-employed, those made by you for which you claim a tax deduction. Examples include Superannuation
Guarantee (SG) contributions, salary sacrifice amounts, and any amount allowed as a personal deduction in your income tax return.

Non-concessional (after-tax) contributions – these are personal super contributions which you or your spouse
makes for you with after-tax income.

The following table shows the caps that currently apply to
both concessional and non-concessional contributions. It also details the extra tax that would apply to any amounts that exceed the cap.

This information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. Because of this, you should consider whether the information is appropriate in light of your particular objectives, financial situation and needs.