Risk and return: How to achieve balance with the right super investment option for you

It’s important to work out your tolerance to risk, how much can you accept to get a higher long-term return.

Question 1. I am 64 and wanting to retire in 18 months time. At the commencement of the pandemic I changed my superannuation investment allocation to cash. I missed the big falls of March 2020.

I am now too frightened to move it anywhere for fear of another big downturn in the markets due to the election, war in Ukraine and the ongoing pandemic. Subsequently I have missed the steady gains of the last two years.