Have you noticed a bit of a dip in your KiwiSaver balance lately? Don’t worry, you are not alone.
Here at Cole Murray we just wanted to let you know that market volatility is part of any long-term investment cycle, and although it might make you a bit anxious, it will pass.
The reason for the financial market turmoil is the huge pressure the markets have been under for most of 2022. It is a combination of high inflation, rising interest rates and the war in Ukraine. The pound took a fall, last week, after the British Governments announcement to cut taxes but increase government borrowing. So this also affected markets.
We strongly recommend that you don’t make any significant adjustments to your KiwiSaver. Instead maybe turn the news off and don’t look at your account balance for a bit. Leaving it to do it’s own thing is really important right now.
Of course, if you are nearing retirement or wanting to withdraw your KiwiSaver to help towards your house deposit, this dip might not have come at a great time. Please give your Cole Murray KiwiSaver Adviser a call, they are always here to help.
On a positive side, if you are not planning on using your KiwiSaver for another 10 to 20 years when you think you might retire, this level of volatility could actually help you.
When you are putting your money (hopefully every pay day) into your KiwiSaver account, you are actually buying units at a discounted rate while the markets aren’t looking so great. These discounted assets will then start becoming more valuable as the markets start recovering.
So maybe look at the silver lining in this situation. If it is possible, put a bit more investment into your KiwiSaver, at least until the market recovers. The benefits this might make to your balance in the long-term could really help Future You.
Photo by Jessica Lewis Creative