1. Don’t make emotional decisions. During times like these, it’s easy to get caught up in the uncertainty and the panic. If you do want to make a decision or a change to your KiwiSaver, make sure you do your research and make an informed decision, not an emotional one.
2. Think about your goals. It’s important to keep your end goal in mind during this time. If you made the decision to be in a certain fund before COVID-19 came along, it will likely still be the right decision for you when things return to normal.
3. Don’t lock in your losses. Switching to a more conservative fund in a poor market means you’re just locking in your losses and you’ll miss out when it does right itself again.
4. Remember that it’s a long game. For most people, KiwiSaver is there to be used when they retire. There will likely be many ups and downs before then, and your KiwiSaver fund will see growth and losses – but where there’s a loss, there will usually be growth later on.
5. KiwiSaver is an investment. Many people think that KiwiSaver is a savings fund but, while usually not as volatile as say shares on the stock market, it’s actually an investment. This means that you will see the balance go up and down over time – this is perfectly normal.
6. Know your risk profile. This is an important one as it can help you understand and feel comfortable with how your KiwiSaver is faring. If you know you don’t want to take on much risk, you can align your fund to suit this.
7. Get some support. If the balance of your KiwiSaver is causing you a lot of undue stress and anxiety, it might be a good idea to speak to an adviser about what is happening in the markets so that you can work through your options.
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