We know there’s been a lot of talk in the media recently about the impact coronavirus and the oil price is having on market stability and KiwiSaver investments. 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.
The market is cyclic - it has ups and downs. The key thing to remember is not to panic. 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 ups and downs that come along.
To figure out if your investments match your goals, think about your investment timeframe.
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. This might give you more certainty while you look for your first home.
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. As the saying goes, “It’s time in the market, not timing the market” that really counts.
In either case, give us a call on 0800 336 338 or call your financial adviser to have a chat through some options.