During these uncertain times, you might be nervous about your investments. It’s important to consider your long-term goals and make well-informed decisions.
Here are some steps to take with your super or investments in shares to ride out ups and downs in the investment markets.
1. Avoid focusing on market volatility
When investment markets are volatile, it can be a good time to review your investment strategy. But don’t make any rash decisions based on recent falls and gains.
Some investors panic when markets fall and decide to convert all their investments to cash. However this means you lock in your losses and you miss out on any investment market recovery. Markets typically recover over the long-term.
Diversification across a broad range of asset classes is the best defence to ride out the ups and downs in the markets at any time.
Super in an uncertain investment market
If you’re concerned about your super balance taking a hit, remember super is a long-term investment. Over time it will recover from the ups and downs in investment markets.
If you’re close (5 years or less) to retirement, understand your retirement income options, take your time and avoid hasty decisions.
Consider getting financial information and guidance from:
- a licensed financial adviser
- your super fund
- a Services Australia Financial Information Service officer
2. Don’t try to time the market
It’s not a good idea to sell shares or other investments based on daily headlines.
Even the most skilled and experienced investors have difficulty predicting the best time to buy and sell. You might sell your investments only for markets to recover soon after.
Holding onto your investments, even during downturns, can be an effective strategy if your financial goals and situation haven’t changed.
3. Review your financial goals
Unexpected events can impact your financial goals.
Talk it over with your family, consider your long-term goals and only mSource : ake well-informed decisions.
If you’ve become unemployed, for example, you might need to cash out some of your investments for short-term expenses. Only do this if you have no savings to draw on and have explored all other options such government support and applying for financial hardship.
If you do have to draw on your investments, only cash out some of them, if you can. That way you can minimise your losses and still have some money invested when the market begins to recover.
If you’re using a financial adviser, now is a good time to ask them to review your financial plan.
4. Beware of investment scams
Beware of cold-calls and unsolicited investment offers and the promise of big returns. If it sounds too good to be true, it usually is.
Making hasty decisions, like panic selling or buying shares, can make you more vulnerable to investment scams.
Scammers exploit fear with fake investment offers promising to recover your losses.
Please contact us on 1300 79 80 38 if you seek further assistance on this topic.
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At Assure Wealth we specialise in helping busy, successful families structure their finances to achieve greater wealth and financial peace of mind.
Disclaimer: The information provided on this website has been provided as general advice only. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of your Walker Lane Pty Ltd Adviser before you make any decision regarding any products mentioned in this communication. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither Walker Lane nor its related entities, employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information.
Assure Wealth Pty Ltd ABN 31 965 466 780 Corporate Authorised Representative no. 1244817, Patrick Casey Sub-Authorised Representative no. 1244748 of Walker Lane Pty Ltd ABN 70 626 199 826, an AFSL holder No 509305.