What to Do When Your KiwiSaver Drops 10% in Two Days
Last week, global share markets took a hit. The US stock market (S&P 500) dropped more than 10% over two days - one of the worst back-to-back trading sessions in decades. If you’re in a growth or high-growth KiwiSaver fund, chances are you saw a significant dip in your balance.
Market drops like this can feel scary. But they don’t need to derail your long-term plan. At Compound Wealth, we believe that times like this are when good financial advice really matters.
First, Don’t Panic
It’s completely normal to feel uneasy when you see your KiwiSaver drop. But reacting emotionally can often make things worse.
Short-term volatility is part of investing. The key is how you respond to it.
Have a Plan. Stick to It
The worst time to change your strategy is during a downturn. That’s like selling your house in a property slump because prices dipped that week.
At Compound Wealth, we recommend diversified KiwiSaver portfolios that are built to withstand these kinds of moments. We don’t try to guess the top or the bottom. We help clients make smart decisions ahead of time - and stick to the plan when markets get choppy.
We recommend diversified KiwiSaver portfolios with a clear, long-term plan - built to weather market ups and downs without the need for knee-jerk reactions.
Stocks Are on Sale
If you’re contributing to KiwiSaver regularly, you’re now buying more units at cheaper prices. That’s a good thing!
It’s the investment version of buying items on sale - you get more for your money. Over time, that helps boost long-term returns.
Our KiwiSaver Survival Plan
Here’s what we help clients focus on when things get volatile:
Automate good investment behaviour
Stick to a long-term strategy
Diversify across assets and market conditions
Ignore short-term market noise
Don’t let markets control your emotions or life
Not Sure You’re in the Right KiwiSaver Fund?
Now’s a great time to review your investments - not to panic-sell, but to check alignment. Are you invested for your goals? Does your fund match your timeframe and risk tolerance?
If you're unsure, we're here to help. Let’s make sure your KiwiSaver is working hard for your future - no matter what the markets are doing today.
If you want to reach out about your KiwiSaver or Investments, please do not hesitate to get in touch. If you are wanting to review your current KiwiSaver investment, please complete our KiwiSaver Discovery Quiz for a personalised recommendation.
