With the many unknowns presented by Covid-19, there has been a lot of volatility in the share market. Following the share markets high at the end of February, there was a 30% decline in the all ordinaries index. To put it simply, if you owned a share or stock during this period of time, it was valued around 30% less than what it was at the end of February.
However, it’s not all doom and gloom!
The common theme throughout history when these downfalls in the market occur, is that;
- these downturns are normal,
- they are a normal process of the investment journey, and
- the price of a share will always return to its fundamental underlying value.
The Government is allowing eligible Australians to withdraw up to $10,000 of their superannuation in 2019-20, plus a further $10,000 in 2020-21. However, withdrawing money from your superannuation is effectively selling shares. Do you know how much of your superannuation is exposed to the volatility of the share market and what the asset allocation is?
While taking your money out of your superannuation and moving your money to cash protects you from further losses, it also means that you miss out on any potential increases when the market begins to recover. Read this blog where we discuss the pros and cons further.
Regardless of your situation, we are here to help you. Let’s work together to create a plan to help you and your family through this challenging time!
Our Covid-19 blog is full of more useful information and additional resources, so please make sure you click here to check it out!
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