How Compound Investing Can Help Your Super Grow
It’s likely you have a super fund looking after your superannuation. But that doesn’t mean it should be set and forget - you may be missing opportunities to help give it a boost.
When your employer makes a super payment on your behalf, your super fund will invest it in assets (like shares) that will hopefully help it increase in value over time. To help it grow even more, they’ll use a compound investment strategy.
When super investments earn money, that money will be reinvested, which may create a snowball effect of investment returns earning their own returns.
The more a super investment earns, the more money that gets reinvested. The longer this happens, the longer there’s an opportunity for it to keep growing.
Topping up, can make a difference
Adding more money to super, on top of what your employer’s already paying, could make a difference to how much money you have down the track. Particularly because your super investments can make the most of this compounding effect.
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