You would have to be hiding under a rock to have not realised that the share market is taking a hit at the moment. For the majority of us we see the effects of this when we log into our KiwiSaver’s.
Here at One50 HQ we have been fielding lots of calls from our clients to check in and ask us for advice for what they should be doing.
If you aren’t looking at withdrawing money from KiwiSaver in the short term and are comfortable to ride out the storm then so long as history repeats itself the markets will correct themselves so just leave it to do its thing.
Once you understand that investing is a long term strategy and that you actually aren’t losing the money even though your balance is going down it really helps you sleep at night.
However if you are wanting to do a first home withdrawal what you decide to do will come down to the timeframe of which you need it and your appetite for risk.
If you are completely reliant on your KiwiSaver for your home deposit in the near future then it might be a good idea to focus on security and not growth. With that in mind moving away from a growth fund to a more conservative fund is an option to secure your deposit.
Alternatively if that timeframe is longer then it will depend on how much risk you want to take on. You could stay in a growth fund with the hope that the markets will have rebounded by the time you buy because they eventually will.
The risk here is that no one know when that will be.
So you run the risk that the market will continue to go down and not rebound by the time you want to take your money out of KiwiSaver.
We can’t stress the importance of getting personalised advice on this subject because there are a number of other market factors and things about your unique personal situation that will need to be taken into account before making an informed decision.
Get in touch with our KiwiSaver team if you are unsure what the next best step is on 0800 802 088.