POWERED BY MOMENTUM MEDIA
Term deposits and holidays over super
Term deposits, property, and holidays take the cake when it comes to investor windfall, according to BT Financial Group.
BT's financial health index found 40 per cent of Australians would invest in a term deposit or high interest account following a $100,000 windfall. Just over a third said they would invest in property, and the same for a holiday.
However, only one in five would put the money towards superannuation.
BT Financial Group general manager for superannuation, Melinda Howes, said "many people currently nearing retirement are under-funded — they don't have enough super to last their lifetime".
"Investing an inheritance in super in your 50s or 60s could be what makes the difference between a frugal and a comfortable standard of living in retirement," she said.
The index also found over one in four Australians hold shares, and a similar proportion did not have any investments at all.
Property was the most popular investment for those under 45, and 54 per cent of those aged between 25 and 35 said they would buy property.
"Australians are certainly comfortable investing in cash and short-term savings accounts and term deposits, but the truth is, they are unlikely to reach their superannuation goals with these investments alone," Howes said.
Recommended for you
A member body representing some prominent wealth managers is concerned super funds’ dominance is sidelining small companies in capital markets.
Earlier this month, several Australian superannuation funds fell victim to credential stuffing attacks, which saw a small number of members lose more than $500,000.
Small- to medium-sized funds have become collateral damage in an "imperfect" model for super industry levies, a financial institution has said.
Big business has joined the chorus of opposition against the proposed Division 296 tax.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
37.15 3 y p.a(%)
3
GAM LSA Private Shares AU I
33.96 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.68 3 y p.a(%)
5
Plato Global Alpha A
28.73 3 y p.a(%)
