Weather the Storm - Financial Resilience
Our key messages:
- It’s normal for the value of investments to rise and fall.
- You can prepare for downturns in financial markets by choosing the right fund for when you need the money.
- Lower-risk funds are better if you need the money in the short-term (3-7 years) – for example, if you are planning to use the money for a deposit on a first home.
- Higher-risk funds are better if you don’t need the money for many years, for example, until retirement.
- Keep contributing. Your contributions are buying assets at a lower price during a downturn.
- Get help and advice before making any investment changes. Switching from a higher-risk fund into a lower-risk fund during a market downturn means you lock in any losses.