Hi there,
I just got back from Japan a few weeks ago! We were there on holiday and spent some time visiting friends in Tokyo. It was fascinating to experience the different culture. Japan is a beautiful country, and I noticed how incredibly hardworking the people are. Like New Zealand, property prices in the main cities are very high.
Let’s talk KiwiSaver
Over the past few months, I’ve received a lot of messages and calls about KiwiSaver. Many of you were wondering why your KiwiSaver balance was falling.
New Zealand may feel isolated at times, but global events do impact us. Recently, trade tensions have risen, with the US imposing tariffs on various countries. As a result, the market has been very volatile.
Here are some of the common questions I’ve been asked:
My KiwiSaver balance is falling, should I switch to a more conservative fund?
I’d strongly recommend not to. For example, if you switched from a growth fund to a conservative fund right now, you’d be selling your units while their value is low. That means locking in your losses.
Think of it like this: If you bought your first home for $800,000 and a recession caused its value to drop to $750,000, you wouldn’t sell it right away. You’d wait for prices to recover. It’s the same with your KiwiSaver.
Should I stop contributing to my KiwiSaver account because it’s losing money?
Not necessarily. While your balance may have fallen, you still own the same number of units. Their value has just dropped for now.
In fact, this could be a great time to invest. You’re buying units at a lower price, which means more potential growth when the market recovers. Read more in this 1News article on KiwiSaver and market dips here.
What should I do with my KiwiSaver?
In most cases, the best thing to do is nothing. Remember 2020 during COVID-19? There was a lot of market uncertainty, but within three months the market recovered and six months later, it was performing even better.
Got questions? I’m here to help.
It’s a girl!
We’re so excited to share that we’re expecting a baby girl, our third child! With two boys already, this is a special moment for our family.
We’ve always made sure we have the right insurance in place for ourselves and our children. There’s nothing more important than knowing you and your family are protected.
Has any of the following occurred since your last insurance review?
- Had a child
- Planning to buy your first home
- Changed jobs or occupation
- Started a business
If any of these apply, it might be time to check in on your cover.
Let me know if anything has changed for you or if you’d like to catch up.
Warm regards,
Bourne Wong
