It’s natural to worry about how world events and current news stories could have an impact on market stability and your KiwiSaver investments.
Particularly during times when the funds value is going up and down or volatile.
This could especially be the case if you’re planning to buy a first home in the next six months or so, and planning on using your KiwiSaver savings as your deposit. You might be worried about your KiwiSaver balance and wondering what to do.
While it may seem at times like it’s 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 and make any hasty reactive changes. When it comes to your KiwiSaver savings, the best thing you can do is make sure your investments align with your goals.
That way you'll be well set to ride out any volatility that comes along.
Things to think about
Think back to when you first chose your KiwiSaver fund. Chances are you answered some questions to help you find a fund that aligned with your goals. If you did that bit of initial planning, then you can (try to!) relax now.
Generally, if you’re thinking about withdrawing your funds in the next 6-12 months, you might feel more comfortable in a conservative fund with less exposure to the share market and, therefore, volatility. 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 withdraw your KiwiSaver savings for a couple of years, then a more growth-oriented fund could be a better option as they help to grow your balance more over time.
Plans do change though. How you invest should and what fund you’re in should change as well to align with your new priorities.
We’re here to help, whether you want to check if you’re in the right fund or want to reassess your choice, give us a call on 0800 336 338 or call your financial adviser to have a chat through some options.
As the saying goes, “It’s time in the market, not timing the market” that really counts.
