How superannuation is like the game of cricket
Tags: Super, cricket, investments, World Cup
Australia’s dominant World Cup win yesterday has got us inspired! When we were chatting about the game today (sorry Kiwi’s), we realised there are many parallels between cricket and super.
A long bow you think? Hear us out.
- You need to be patient. You can't swing wildly at every ball - you need to gauge when and how to hit the ball coming at you - just like the market.
- You're not going to hit a 6 with every ball. Likewise, you're not going to choose the highest returning asset every single time - which is why it’s important to invest your super across a range of assets to diversify the risk and produce a high return overall.
- You need a good coaching team. You need experienced specialists who can see the big picture and know how to get the best of you. At The Super Fund Co., we have brought together a first class team of "coaching" specialists including best-in-breed money managers and research houses, to ensure your super is invested in the optimal way.
- You need a strong captain. You need someone who can read the play, make tactical changes when needed and who will encourage you to keep going. At The Super Fund Co. that's our experienced advisers, who personally review your super portfolio at least once a year and ensure that you're always on the right path.
- You need to keep your eye on the scoreboard. Likewise, you need to keep your eye on how your super's tracking so you can make changes where needed, and reach your goals sooner.
- You want to win the match, not the game. Sometimes you will take risks and they won't always pay off... But at the end of the day you want to be holding that trophy above your head. Or - that piña colada on the beach as you toast your retirement;)
- It’s important to focus on quality and have a long-term view – don’t be dazzled by the “flash-in-the-pan type” players (assets). Players like Michael Clarke could be considered long-term, quality investments. Whilst at times he’s been out of form (under-performed expectations in the short term), he has remained a valuable part of the team (portfolio). Over his career, Clarke has been consistent and delivered (outperformed) and been an integral contributor to overall team performance (portfolio returns).
Congratulations to the Australian cricket team on the World Cup win!
