Welcome to Ask Fear and Greed. Will we answer questions about business, investing, economics, politics and more. I'm Michael Thompson and hello Sean Aylmer.

Welcome to Ask Fear and Greed. Will we answer questions about business, investing, economics, politics and more. I'm Michael Thompson and hello Sean Aylmer.

Hello, Michael.

Hello, Michael.

Sean, a very timely question today. How much should we worry about falling super balances?

Sean, a very timely question today. How much should we worry about falling super balances?

Ah, because of what's going on in financial markets. Well, unless you're about to retire, you shouldn't worry about it much at all. Okay now, And even if you're going to retire, it's not like you take all the money now and spend it and don't. I mean, you've kind of invested it when you retire. The point is superannuation is a long term investment held on. You're looking at me, You're pointing you.

Ah, because of what's going on in financial markets. Well, unless you're about to retire, you shouldn't worry about it much at all. Okay now, And even if you're going to retire, it's not like you take all the money now and spend it and don't. I mean, you've kind of invested it when you retire. The point is superannuation is a long term investment held on. You're looking at me, You're pointing you.

No, I'm not at all. But I think that is a message that needs to get out quite broadly, particularly to young people, because there has been a space of videos you bought.

No, I'm not at all. But I think that is a message that needs to get out quite broadly, particularly to young people, because there has been a space of videos you bought.

This, you show me this video was like a twenty eight year old or twenty nine year old on Instagram looking at his super account and being distressed about what was going on. So that twenty twenty nine year old isn't going to access his account for thirty years, thirty five years, so it actually doesn't matter. If you look at the last thirty years of returns and it's it's at least it's an indicator of what the next thirty might be like about seven point nine percent eight percent on average return each year compound over the last thirty years. Now, in that last thirty years, we've had the global financial crisis, we've had COVID, we've had much bigger falls than what's going on at the moment. And in fact, in the last thirty two years, I think it is twenty seven of thirty two years you've had positive returns on super only if I've been negative, and for the last two years, one was like ten percent, the other was eleven percent. So it's a long term investment. Markets go up and down, but long term they trend higher. So all this me always known the media and we are the media, and we have done it right. But at the end of the day, a twenty eight year old shouldn't give two.

This, you show me this video was like a twenty eight year old or twenty nine year old on Instagram looking at his super account and being distressed about what was going on. So that twenty twenty nine year old isn't going to access his account for thirty years, thirty five years, so it actually doesn't matter. If you look at the last thirty years of returns and it's it's at least it's an indicator of what the next thirty might be like about seven point nine percent eight percent on average return each year compound over the last thirty years. Now, in that last thirty years, we've had the global financial crisis, we've had COVID, we've had much bigger falls than what's going on at the moment. And in fact, in the last thirty two years, I think it is twenty seven of thirty two years you've had positive returns on super only if I've been negative, and for the last two years, one was like ten percent, the other was eleven percent. So it's a long term investment. Markets go up and down, but long term they trend higher. So all this me always known the media and we are the media, and we have done it right. But at the end of the day, a twenty eight year old shouldn't give two.

Hoots, shouldn't worry too much. And some of the comments that were attached to that video, for people saying I lost five thousand dollars, how was this allowed? And someone said mine is down sixteen thousand, and probably In one comment made by the individual, the young man who had lost the forty thousand dollars, he made the point, he goes, it'll come back eventually, right, And chances are he's actually kind of thinking.

Hoots, shouldn't worry too much. And some of the comments that were attached to that video, for people saying I lost five thousand dollars, how was this allowed? And someone said mine is down sixteen thousand, and probably In one comment made by the individual, the young man who had lost the forty thousand dollars, he made the point, he goes, it'll come back eventually, right, And chances are he's actually kind of thinking.

Twenty thousand dollars I wonder. I mean, that's a lot of money for a twenty eight year old to lose in superinnuation.

Twenty thousand dollars I wonder. I mean, that's a lot of money for a twenty eight year old to lose in superinnuation.

And it may be the case that he is in a high aggressive Yeah, a high aggressive fun I think it will come back.

And it may be the case that he is in a high aggressive Yeah, a high aggressive fun I think it will come back.

I mean for a twenty eight or twenty nine year old, don't worry about it. If you're my age, don't worry about it. If you're sixty five, you're going to start thinking about it, definitely. But even then you reinvest the money in over twenty or thirty years, you've got to live as a sixty five year old, you're still the mark will bounce.

I mean for a twenty eight or twenty nine year old, don't worry about it. If you're my age, don't worry about it. If you're sixty five, you're going to start thinking about it, definitely. But even then you reinvest the money in over twenty or thirty years, you've got to live as a sixty five year old, you're still the mark will bounce.

And if you're genuinely worried about it, then talk to somebody, because the thing is that there is there are financial advisors and financial planners that you can talk to. You can even contact your superfund in most cases, and there is generic advice available through your superfund in many cases. And if you're really upset and really distressed. There are financial counselors available as well, so there are plenty of options out there, but starting with some good quality financial advice is a fantastic thing to do no matter where you are in the Super journey.

And if you're genuinely worried about it, then talk to somebody, because the thing is that there is there are financial advisors and financial planners that you can talk to. You can even contact your superfund in most cases, and there is generic advice available through your superfund in many cases. And if you're really upset and really distressed. There are financial counselors available as well, so there are plenty of options out there, but starting with some good quality financial advice is a fantastic thing to do no matter where you are in the Super journey.

Yeah, and don't stress. No, Super is a long, long term investment and a week of poor returns isn't going to make that much difference in the long run.

Yeah, and don't stress. No, Super is a long, long term investment and a week of poor returns isn't going to make that much difference in the long run.

Still distressing to see it. I don't think that part changes. I think we've calmed things down. I think I have I think an admirable job there, Sean, Thank you very much, Thank you, Michael. If you have your own question that you would like us to answer them, please send it on through via LinkedIn or Instagram or Facebook really any of the social media platforms, or at Fearangreed dot com dot au, which is also where you can sign up for our free daily newsletter. I'm Michael Thompson and this is ask Fear and Greed.

Still distressing to see it. I don't think that part changes. I think we've calmed things down. I think I have I think an admirable job there, Sean, Thank you very much, Thank you, Michael. If you have your own question that you would like us to answer them, please send it on through via LinkedIn or Instagram or Facebook really any of the social media platforms, or at Fearangreed dot com dot au, which is also where you can sign up for our free daily newsletter. I'm Michael Thompson and this is ask Fear and Greed.