1 00:00:03,760 --> 00:00:06,400 Speaker 1: Welcome to Ask Fear and Greed. Will we answer questions 2 00:00:06,400 --> 00:00:10,520 Speaker 1: about business, investing, economics, politics and more. I'm Michael Thompson 3 00:00:10,680 --> 00:00:14,640 Speaker 1: and hello Sean Ayle. Hello Michael, Sean. A very timely 4 00:00:14,800 --> 00:00:21,160 Speaker 1: question today. How much should we worry about falling superbalances? 5 00:00:21,880 --> 00:00:25,160 Speaker 2: Ah, because of what's going on in financial markets. Well, 6 00:00:25,239 --> 00:00:29,240 Speaker 2: unless you're about to retire, you shouldn't worry about it 7 00:00:29,400 --> 00:00:32,440 Speaker 2: much at all. Okay now, And even if you're going 8 00:00:32,479 --> 00:00:34,040 Speaker 2: to retire, it's not like you take all the money 9 00:00:34,040 --> 00:00:35,959 Speaker 2: now and spend it and don't. I mean, you've kind 10 00:00:35,960 --> 00:00:39,360 Speaker 2: of invested it when you retire. The point is superannuation 11 00:00:40,120 --> 00:00:43,680 Speaker 2: is a long term investment held on. You're looking at me, 12 00:00:43,720 --> 00:00:44,199 Speaker 2: You're pointing you. 13 00:00:44,360 --> 00:00:46,800 Speaker 1: No, I'm not at all. But I think that is 14 00:00:46,840 --> 00:00:49,720 Speaker 1: a message that needs to get out quite broadly, particularly 15 00:00:49,720 --> 00:00:52,839 Speaker 1: to young people, because there has been a space of 16 00:00:52,960 --> 00:00:54,200 Speaker 1: videos you bought. 17 00:00:53,920 --> 00:00:56,040 Speaker 2: This, you show me this video was like a twenty 18 00:00:56,080 --> 00:00:59,000 Speaker 2: eight year old or twenty nine year old on Instagram 19 00:00:59,040 --> 00:01:04,040 Speaker 2: looking at his super account and being distressed about what 20 00:01:04,120 --> 00:01:07,080 Speaker 2: was going on. So that twenty twenty nine year old 21 00:01:07,160 --> 00:01:11,160 Speaker 2: isn't going to access his account for thirty years, thirty 22 00:01:11,200 --> 00:01:13,360 Speaker 2: five years, so it actually doesn't matter. If you look 23 00:01:13,400 --> 00:01:17,560 Speaker 2: at the last thirty years of returns and it's it's 24 00:01:17,560 --> 00:01:19,440 Speaker 2: at least it's an indicator of what the next thirty 25 00:01:19,520 --> 00:01:23,319 Speaker 2: might be like about seven point nine percent eight percent 26 00:01:23,400 --> 00:01:28,880 Speaker 2: on average return each year compound over the last thirty years. Now, 27 00:01:28,920 --> 00:01:32,520 Speaker 2: in that last thirty years, we've had the global financial crisis, 28 00:01:33,160 --> 00:01:37,000 Speaker 2: we've had COVID, we've had much bigger falls than what's 29 00:01:37,040 --> 00:01:39,160 Speaker 2: going on at the moment. And in fact, in the 30 00:01:39,240 --> 00:01:41,920 Speaker 2: last thirty two years, I think it is twenty seven 31 00:01:41,959 --> 00:01:45,080 Speaker 2: of thirty two years you've had positive returns on super 32 00:01:45,440 --> 00:01:47,720 Speaker 2: only if I've been negative, and for the last two years, 33 00:01:47,720 --> 00:01:50,200 Speaker 2: one was like ten percent, the other was eleven percent. 34 00:01:50,840 --> 00:01:55,600 Speaker 2: So it's a long term investment. Markets go up and down, 35 00:01:55,640 --> 00:01:59,880 Speaker 2: but long term they trend higher. So all this me 36 00:02:00,320 --> 00:02:02,760 Speaker 2: always known the media and we are the media, and 37 00:02:02,800 --> 00:02:04,760 Speaker 2: we have done it right. But at the end of 38 00:02:04,800 --> 00:02:08,200 Speaker 2: the day, a twenty eight year old shouldn't give two. 39 00:02:08,080 --> 00:02:11,400 Speaker 1: Hoots, shouldn't worry too much. And some of the comments 40 00:02:11,480 --> 00:02:15,519 Speaker 1: that were attached to that video, for people saying I 41 00:02:15,639 --> 00:02:18,200 Speaker 1: lost five thousand dollars, how was this allowed? And someone 42 00:02:18,240 --> 00:02:21,799 Speaker 1: said mine is down sixteen thousand, and probably In one 43 00:02:21,840 --> 00:02:25,239 Speaker 1: comment made by the individual, the young man who had 44 00:02:25,440 --> 00:02:29,920 Speaker 1: lost the forty thousand dollars, he made the point, he goes, 45 00:02:30,040 --> 00:02:33,800 Speaker 1: it'll come back eventually, right, And chances are he's actually 46 00:02:33,919 --> 00:02:35,160 Speaker 1: kind of thinking. 47 00:02:35,960 --> 00:02:38,480 Speaker 2: Twenty thousand dollars I wonder. I mean, that's a lot 48 00:02:38,520 --> 00:02:40,480 Speaker 2: of money for a twenty eight year old to lose 49 00:02:40,560 --> 00:02:41,519 Speaker 2: in superinnuation. 50 00:02:42,400 --> 00:02:44,400 Speaker 1: And it may be the case that he is in 51 00:02:44,440 --> 00:02:50,560 Speaker 1: a high aggressive Yeah, a high aggressive fun I think 52 00:02:51,120 --> 00:02:51,800 Speaker 1: it will come back. 53 00:02:51,800 --> 00:02:53,480 Speaker 2: I mean for a twenty eight or twenty nine year old, 54 00:02:53,600 --> 00:02:56,600 Speaker 2: don't worry about it. If you're my age, don't worry 55 00:02:56,639 --> 00:02:58,760 Speaker 2: about it. If you're sixty five, you're going to start 56 00:02:58,760 --> 00:03:02,480 Speaker 2: thinking about it, definitely. But even then you reinvest the 57 00:03:02,520 --> 00:03:05,919 Speaker 2: money in over twenty or thirty years, you've got to 58 00:03:05,960 --> 00:03:08,640 Speaker 2: live as a sixty five year old, you're still the 59 00:03:08,680 --> 00:03:09,440 Speaker 2: mark will bounce. 60 00:03:09,680 --> 00:03:13,400 Speaker 1: And if you're genuinely worried about it, then talk to somebody, 61 00:03:13,560 --> 00:03:16,960 Speaker 1: because the thing is that there is there are financial 62 00:03:17,000 --> 00:03:20,240 Speaker 1: advisors and financial planners that you can talk to. You 63 00:03:20,240 --> 00:03:23,240 Speaker 1: can even contact your superfund in most cases, and there 64 00:03:23,280 --> 00:03:27,760 Speaker 1: is generic advice available through your superfund in many cases. 65 00:03:28,320 --> 00:03:31,320 Speaker 1: And if you're really upset and really distressed. There are 66 00:03:31,320 --> 00:03:35,000 Speaker 1: financial counselors available as well, so there are plenty of 67 00:03:35,040 --> 00:03:38,920 Speaker 1: options out there, but starting with some good quality financial 68 00:03:38,960 --> 00:03:41,480 Speaker 1: advice is a fantastic thing to do no matter where 69 00:03:41,480 --> 00:03:42,680 Speaker 1: you are in the Super journey. 70 00:03:42,800 --> 00:03:45,760 Speaker 2: Yeah, and don't stress. No, Super is a long, long 71 00:03:45,880 --> 00:03:49,920 Speaker 2: term investment and a week of poor returns isn't going 72 00:03:49,960 --> 00:03:51,600 Speaker 2: to make that much difference in the long run. 73 00:03:52,240 --> 00:03:55,960 Speaker 1: Still distressing to see it. I don't think that part changes. 74 00:03:56,240 --> 00:03:58,760 Speaker 1: I think we've calmed things down. I think I have 75 00:03:59,120 --> 00:04:02,200 Speaker 1: I think an admirable job there, Sean, Thank you very much, 76 00:04:02,360 --> 00:04:04,400 Speaker 1: Thank you, Michael. If you have your own question that 77 00:04:04,440 --> 00:04:07,520 Speaker 1: you would like us to answer them, please send it 78 00:04:07,600 --> 00:04:11,520 Speaker 1: on through via LinkedIn or Instagram or Facebook really any 79 00:04:11,680 --> 00:04:14,120 Speaker 1: of the social media platforms, or at Fearangreed dot com 80 00:04:14,160 --> 00:04:15,720 Speaker 1: dot au, which is also where you can sign up 81 00:04:15,720 --> 00:04:19,359 Speaker 1: for our free daily newsletter. I'm Michael Thompson and this 82 00:04:19,600 --> 00:04:20,640 Speaker 1: is ask Fear and Greed.