With President Trump’s recent actions sending global markets on a roller coaster ride, many Kiwis are worried about their KiwiSaver balances.
If you’ve checked your account lately and felt concerned, here’s some things you can do.
Make sure you’re in the right fund type
Have you heard the term ‘risk profile’? Anyone who is investing, has one. It comes from your individual circumstance and takes into consideration your investment timeframe and your personal appetite for risk.
First think about when you’ll need your money:
- If retirement is decades away, a growth fund might still be right for you despite the markets having a rough time at the moment.
- If you’re buying a house soon, a conservative fund might help you sleep better.
Growth funds (higher risk) bounce around more when big news happens (like Trump’s policies), but they tend to make more money over many years – about twice as much as conservative funds over the past ten years. The longer you can leave your money untouched, the more ups and downs you can ride out.
DO NOT rush in and move your money
Please come and talk to one of our Wealth Advisers if you are worried and get some financial advice before moving your money.
Moving your KiwiSaver when markets drop due to political headlines actually locks in your losses. Given time, the markets often recover once the initial shock passes.
Remember what happened during the 2020 COVID crash – people who switched to conservative funds missed the big bounce back.
Stop checking your balance
If you’re in the right fund, the best thing to do is … nothing.
- Stop checking your balance every time there’s a shocking headline
- Keep making your regular contributions
- Let time smooth out the bumps
Do the opposite … contribute more
It might seem counterintuitive, but if markets are wobbly, putting extra in during these dips could mean better returns later. Your money buys more KiwiSaver units when prices are down.
This is something you might want to talk to a Cole Murray Financial Adviser about.
Come and talk to us
If you’re still worried about how global politics is affecting your savings, come and talk to a KiwiSaver Adviser. Research has shown that people who get advice from a financial adviser often cope with periods of volatility more comfortably. They usually end up with better outcomes too.
We are experts in investing and can help you understand what’s happening, so you can feel more confident about your financial future.
Remember, political impacts on markets are normal and usually temporary. Understanding how your KiwiSaver works during these times will help you make better decisions for your long-term goals, regardless of who’s making headlines.
