Here’s a widely accepted idea – adding more to your super or savings account when you’re younger will provide you with a bigger income when you retire. Compound interest, the value of time… oh God I lost you, didn’t I. Sorry about that.
Here’s a less common, but more interesting and powerful idea – adding more to your super isn’t necessarily about you putting more money in, but about choosing the big trends to back. Trends that have the potential to deliver returns as the world evolves and changes in the next 30 – 40 years, before you retire.
It’s not rocket science. It’s just a considered assessment of the world around you, and what’s going on.
The fact is, you being you gives you an inside edge on the future. Why? Because as a millennial, you are smack bang in the middle of the evolution of the future. You don’t watch it, you feel it. Young Australians are right at the heart of the seismic shift that is happening in technology, healthcare and energy. Here’s what I mean.
Tech is a train that is unstoppable.
56% of Urban Millennials are likely to purchase a self-driving car in the future. Compare that to 23% of Urban Boomers.
65% of Millennials are nervous that people will need to learn to work with and adapt to robots and artificial intelligence (AI) at jobs in the future
Like it or hate it, these tech trends have momentum. And while many millennials will passively wait for this future to arrive, some will back it before it’s here. Zuper future backers might even do this through their super. In fact, companies riding these trends that they’ll get exposure to via our Exchange Traded Funds (ETFs) include:
Nvidia and Tesla, who are pioneering self-driving technology; and,
ServiceNow, who automate work tasks, and are #1 on Forbes World’s Most Innovative Company List
By 2022, it is estimated the global healthcare sector will have invested $410 Billion in Internet of Things devices, software and services. Compare that to $59 Billion in 2014. If you’re already a Fitbit or Apple watch wearer, it’s hardly a stretch to imagine this world and its predicted exponential growth.
80% of Millennials believe it is likely people will stay healthier much longer in life, with future 80-year-olds as active and vital as those in their 50s and 60s today.
On top of that, 78% of Millennials believe it is likely babies will be given customized vaccines at birth based on their DNA, preventing or countering a host of genetic diseases and pre-existing conditions.
So it makes sense to get exposure to these trends. ETFs inside Zuper portfolios will invest your super in health companies like:
Intuitive Surgical, who build robotic technologies for less invasive and potentially lower cost surgery and medical treatments; and,
Illumina, who are a global leader in genomics – an industry at the intersection of biology and technology and pivotal to the tailored genetic healthcare market.
The renewables evolution is happening right on our doorstep. Bloomberg New Energy finance predicts wind, solar power and batteries will get cheaper, eclipsing coal power as a source of generation in Australia by 2035 and virtually eliminating it from the energy mix by 2050.
First Solar is one company inside Zuper super that is primed to ride this trend, as attitudes around solar changes, costs come down for the everyday consumer, and governments use their procurement power to grow the industry.
Put it this way – if 20 years ago your parents had fallen in love with ordering books online, and had invested in Amazon’s stock when it first hit the public market - at US$18 a pop - today those shares would be worth US$1796, each.
Thinking outside of the box about the future, and backing it with your super is one way to link your passion to opportunity. In fact, at Zuper, we believe decisions made today, collectively by our community, could even influence the future before it happens. That’s our passion, translated into opportunity, and a big reason about why we’re here, taking on this industry. It’s for you, and it’s for the future. To learn more about how our super options capture these big trends, be sure to check out - this post.
This article is general in nature, and has been prepared without taking into account your objectives, financial situation or needs. You should consider if the information is appropriate and whether you need to speak to an accredited professional.
CEO and Co-Founder at Zuper Superannuation. Loves fintech, writing, pilates, Campari and soda's and, as of 2018, marathon running.More