COVID-19 has had an unprecedented impact on our economy, but should you be rethinking your super investment strategy now?
Read on to find out what you need to know before making any changes.
Your Super Investment Strategy
Superannuation is a long-term investment and is designed to weather short-term investment market changes.
The consensus from experts is not to panic at the impact of COVID-19 (Coronovirus) on the share market. With market volatility, such as what we are seeing right now, the best thing to do in most cases, is nothing.
It’s never a good idea to exit the market after a crash, it could be timely to review your investment options to determine whether the risk level is right for you. But should it be in reaction to the COVID-19? Rob Hayward from Crest Wealth states “No, you should be making sure that your investments have the appropriate risk to suit your age, tolerance and goals”.
The Share Market
No one can predict the future, but if we look at the past – what can it tell us about the future of the share market?
The share market has historically rebounded strongly after dips caused by other public health crises such as Ebola, SARS and swine flu. If you take look back at history, these tragedies impact people but they’re short-term health crises, not long-term financial crises. In the long term, we know the share market goes up.
What can you be doing?
The market disruption can, however, be a good opportunity to consider whether the risk level of your super is right for your age and goals.
Before you make any change to your super investment strategy, we strongly recommend you seek financial advice. If you would like to discuss your financial situation contact us.
Disclaimer: This blog post is intended to provide a general summary only; the information should not be relied on as a substitute for professional advice.