Depending on eligibility, an employee can choose to have superannuation placed into a self-managed fund instead of relying on the employer to make the best decision that conforms to the employee's personal decides. An employer's choice of where the funds go can be suitable to individual employees, but it many cases, it may be more suitable to the employer or the entire group of employees as a whole.

An employee can decide to have a go and opt for a self-managed super, but does the employee have the necessary time and skills to maintain the super?…  Does the typical employee know all the nuances in Australian law and financial products to make the most suitable decision? First, the employee would have to have financial goals and achievements in mind. This requires a bit of serious contemplation. What if the employee does not know what goals are achievable and what goals are totally out of reach? What is the best investment strategy to reach those goals?…  Which financial vehicle will allow the employee to save up for a rainy day, enjoy some earnings today, and live comfortably tomorrow? These questions are overwhelming for many. Some employees do nothing about their questions.…  Others go it alone and worry about the consequences of their action or inaction. Wouldn't it be easier to pass off some worries to someone who deals with this financial stuff on a full-time basis? Choosing the most suitable options may require help from someone who deals with the questions, regulations, products, issues, and lingo everyday: a financial advisor.

It is still difficult to choose a superfund. It is also not any easier to fathom the issues that accompany a superfund all alone.…  Funds go up and down, some like a cosine function on crack, while others wax and wane more gradually, but fluctuations are a norm for the market in which funds live and grow.…  When the fund's value continues on a downward slope, employee investors become anxious, which is normal.…  Nagging questions crop up of whether there will be enough food on the table when the old hairs are scant and gray. Can the promise of future returns keep an employee investor's stomach at ease?…  Can a graph of the historical returns of a fund be used to predict the future? Is it okay if investment returns are down for a while?…  And if so, what happens?

Superannuation funds are a safety net to help deal with growing older with age and having a lower income.…  Some experts say that it is best for the young to invest for the long-term and as a person ages, other investment strategies and vehicles should be played.…  In general, falling inflation and falling interest rates mean that future returns on a fund are not diminished to a larger extent as it would if inflation and interest rates were higher. Who is most qualified at discerning whether inflation and interest rates will fall? Perhaps it would be wise to seek the advice of someone who holds authority and expertise in the subject.

All in all, the goal is to have a higher rate of return in whatever financial vehicle one chooses over the other. Usually, making wise investments in the market will give a better return than holding paper money and coins in a sock hidden in a hole in the cupboard.…  One caveat needs to be pointed out: higher return means taking higher risk, not higher risk means higher return.