Millions of KiwiSaver accounts are influenced by global market prices, which can seem daunting. However, it's important to remember the background of strong equity market gains in recent years. Psychologically, we tend to feel bad news more intensely than good news but acknowledging this bias can help us stay balanced.
KiwiSaver is a fantastic tool for long-term retirement savings. While market fluctuations do affect retirement savings, the most crucial factor is the consistency of contributions. Market volatility is a part of investing, but history shows that good years outnumber the bad. When prices are down, it often means that investments are on sale, presenting a good opportunity to invest.
For those saving for a first home or nearing retirement, now is a great time to ensure their savings are in the right product, possibly a lower-risk fund. Seeking advice and regularly reviewing your KiwiSaver account and financial plan can help you stay on track and make informed decisions. Remember, staying positive and informed is key to navigating market changes successfully.
Disclaimer: This discussion is of a general nature. Always seek professional advice from your Fiduciary Financial Adviser.
Bruce Jenks is a financial adviser at Stewart Group, a Hawke’s Bay and Wellington-based CEFEX & BCorp certified financial planning and advisory firm. Stewart Group provides personal fiduciary services, wealth management, risk insurance and KiwiSaver scheme solutions. Blog No 8.
The information provided, or any opinions expressed in this article, are of a general nature only and should not be construed or relied on as a recommendation to invest in a financial product or class of financial products. You should seek financial advice specific to your circumstances from a Financial Adviser before making any financial decisions. A disclosure statement can be obtained free of charge by calling 0800 878 961 or visit our website, www.stewartgroup.co.nz
