What should I do with my KiwiSaver investment when the market "wobbles"?
It’s been impossible to avoid the daily headlines in the media recently about the impact that the global pandemic, the war in Ukraine and raising inflation is all having on market stability and KiwiSaver investments.
These are certainly bumpy times, and as a result, the market “wobbles” (as we’ve been calling them) may be a bit unnerving if you’re planning to use your KiwiSaver savings as a deposit to buy your first home in the next six months or so.
How does all of this affect your KiwiSaver balance and what should you do about it?
Whilst it may seem like it’s currently just one thing after the other, and making changes might give you a sense of control over your KiwiSaver investment, the key to remember is to NOT panic or take any drastic measures or make extreme changes.
Take a deep breath and keep in mind that the nature of the market is cyclic – it always has ups and downs over time!
When it comes to investing, the best thing you can do is make sure your investments match your goals. That way you'll be well set to ride out any market wobbles that come along.
Things to consider
Think back to when you first chose your KiwiSaver fund. Chances are you answered some questions to help you find a fund that matched your goals. If you did that bit of initial planning, then you can (try to!) relax now.
If you’re thinking about purchasing a new home in the near future or withdrawing your funds in the next few years, there is a good chance you’re in a conservative fund with less exposure to the share market and the volatility currently being experienced. The idea is to give you more certainty and keep your current KiwiSaver balance on an even keel.
If you have longer-term plans or are not planning to use your KiwiSaver savings for a while, you are probably in fund that will likely move around a bit more as it is right now. Either way, the key is to stick to your original plans and relax. As the saying goes, “It’s time in the market, not timing the market” that really counts.
Article originally published by Booster
Lifetime Book Club: The Green Mile by Stephen King
Sometimes the most powerful stories aren’t the ones that scare us. They’re the ones that move us.
Stephen King might be best known for horror, but The Green Mile is a story of humanity, compassion, and courage in the face of unthinkable circumstances. Set in a 1930s prison, it follows Paul Edgecombe, a death row officer, and John Coffey, a man with extraordinary empathy and an inexplicable gift.
The Growing Divide: Why Private Medical Claims Are Surging in New Zealand
It feels like there is another headline about our public health system being under pressure every week. Long waitlists, staff shortages, and hospitals struggling to keep up. It is no surprise that more Kiwis are turning to private healthcare to get the treatment they need and faster.