“You may delay, but time will not.”
― Benjamin Franklin
We all procrastinate but one area where procrastination can be particularly expensive is our investment portfolios. One reason many Australians procrastinate in their investing is when it comes time to make the transition from super-fund to non-super investments.
This can happen because of reaching your super contribution cap, reaching the age of 65, or liquidity needs. Whatever the reason, funds not allocated to investment opportunities tend to pile up as idle cash balances.
A build-up of cash is often undesirable because in the long-run, cash can be the worst performing asset class. This means that, over time, these cash balances eat away the total return your wealth is generating, and ultimately, likely put you further from your investment objectives.
Why “Cash is Trash”, in the Long Run The below chart illustrates the historical returns of Cash, Bonds, or Stocks. As you can see, the Stock and Bond portfolios substantially outpace the returns of cash.
Of course, the situation for cash holding investors today is likely even worse than the historical experience suggests. This is because the yields available on cash deposits have cratered to near-zero in the wake of COVID-19 and the RBA’s quantitative easing programs.
Thus, it is fair to say that procrastinating about your non-super investments has never been so expensive.
Non-Super Investing Made Easy
At Partnervest, our mission is to make it easy for you to avoid this procrastination trap and take control of your non-super investments. Partnervest is an online platform that can offer you a range of wealth creation options. We’ve built a secure web-portal with fast, simple, intuitive navigation, which is supported by a dedicated client care team.
We offer diversified model portfolios with a range of risk and return targets, so you can choose the portfolio that’s right for you. Once you’ve been matched to a portfolio, our platform will give you clear and consolidated view of your assets with comprehensive performance and tax reporting, as well as the ability to draw regular monthly payments or to add regular savings.
You can start investing in Partnervest with just $1000* and invest additional funds from as little as $100 per month, and because the platform is easy to use, you can manage your investments yourself.
To learn more about how you can start building a sound financial future, visit our website at https://partnervest.com.au/.
* You also need to maintain a balance of at least $2500 in your Cash Hub at all times.
All investments carry risk. Before deciding to invest, you should consider the following key risks:
• The value of investments will vary. You can lose money as well as make money.
• The level of returns will vary, and future returns will differ from past returns
• Returns are not guaranteed and investors may lose some or all of their money, and
• Laws change.
Past performance is not an indicator of future returns. Issued by Partnervest, a division of Legg Mason Asset Management Australia Ltd (ABN 76 004 835 849 AFSL 240827). Legg Mason Asset Management Australia Ltd is a part of Franklin Resources, Inc. operating as Franklin Templeton.
Before making an investment decision you should read the relevant Product Disclosure Statement (PDS) carefully and you need to consider, with or without the assistance of a financial advisor, whether such an investment is appropriate in light of your particular investment needs, objectives and financial circumstances. The PDS is available and can be obtained by contacting Partnervest on 1300 734 496 or at www.partnervest.com.au.
 Source: Partnervest, Portfoliovisualizer.com. Performance figures are for illustrative purposes only and do not account for historical trading costs or investment management fees. Past performance is not a guide to future performance.
Past performance is not a guide to future performance. The investment vehicles shown may have different risk profiles and a direct comparison may not be appropriate.