Ki­wiSavers should ride out mar­ket storm

Rotorua Daily Post - - OUR PEOPLE - Diane Maxwell

your con­tri­bu­tions’.”

Tay­lor said all that ad­vice made sense, pro­vided the mem­ber was in the right fund for their goals and cir­cum­stances.

“It’s true you shouldn’t panic. But while it’s on your mind, and even with the mar­ket wob­bling in the back­ground, why not take the op­por­tu­nity to look care­fully at your fund and make sure it sits well with you, who you are and where you’re headed?”

Tay­lor said mem­bers should check out the mix of growth and in­come as­sets in their Ki­wiSaver fund.

“Growth comes with more risk but can also achieve greater gains. Ask your­self, does that trade-off feel okay to you?

“Do you feel com­fort­able tak­ing on more risk to achieve your re­tire­ment goals? Are you suited to the swells and dips (how are you feel­ing now — a bit queasy but okay? Or is your con­cern a bit deeper)?”

Tay­lor said some mem­bers may pre­fer more cer­tainty.

“If that’s you, con­sider a less growth-heavy mix, such as a well­struc­tured bal­anced fund. Here, your money is at least partly shielded in crises, by your fund com­pris­ing in­come-pro­duc­ing as­sets which typ­i­cally do bet­ter in down­turns.

“And if you are still a long way from re­tire­ment, the por­tion of your in­vest­ment in growth (which typ­i­cally does well in the pe­riod af­ter a down­turn) has more time to re­cover from mar­ket shocks, if they come.”

Tay­lor said it was also a good time to ques­tion whether you are with the right fund man­ager by ask­ing your provider about what they are do­ing about the mar­kets and how they coped with the down­turn dur­ing the global fi­nan­cial cri­sis or the more re­cent down­turn in the mar­kets in Fe­bru­ary this year.

“We don’t know if what’s hap­pen­ing now is a proper hur­ri­cane or a squall.

“And we don’t know when the next bad weather might sweep through mar­kets.

“But ei­ther way, your Ki­wiSaver provider should be your bea­con in the storm — not the al­ba­tross around your neck.”

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