If you’ve been watching the news lately, you’ve probably heard a lot of talk about people wanting to move their KiwiSaver to cash because of the recent market volatility.
Before you make any big changes, let’s take a deep breath together 🌿
After more than 20 years in financial advice, I’ve seen many investors make this same move during turbulent times — and unfortunately, it often costs them in the long run. So let’s unpack why staying the course is usually the smarter choice.
🌱 1. Don’t Panic — Stay the Course
When markets dip, it can feel like the safest thing to do is switch your KiwiSaver to a conservative or cash fund. But that move actually locks in your losses.
Here’s why:
If you sell after prices have already fallen, you’re turning a temporary paper loss into a permanent one.
Later, when you want to move back into a growth fund, you’ll likely do it at a higher price — losing twice.
✅ Instead, review your risk profile and make sure your fund still matches your long-term goals.
✅ Ride out the volatility. Markets move in cycles — and patience often pays off.
📉 2. Why Switching KiwiSaver Funds Can Hurt You
It’s natural to want to protect your savings — but timing the market rarely works.
Changing from a growth fund to a conservative one after markets fall might feel “safe,” but it usually means selling low and buying high later.
That’s not protecting your capital — it’s locking in losses.
Instead, take a moment to check that you’re still in the right fund for your goals and life stage.
If you’re unsure, tools from Sorted.org.nz can help you assess your KiwiSaver risk profile — free and unbiased.
💬 3. I Saw My Portfolio Drop $3,000 in One Day — Here’s What I Did
Yes, that really happened! My portfolio dropped $3,000 in just one day. 😳
Did I panic? No. I stayed calm, because I understand how markets move.
The good news? When markets fall and you’re contributing regularly, you’re actually buying more KiwiSaver units at lower prices.
When markets recover, those units gain value faster — boosting your balance more than if you’d switched funds mid-fall. 📈
Volatility can be unsettling, but it’s also a natural part of the investing journey.
🧭 4. Your Strategy Shouldn’t Be Based on Fear
You can’t control market ups and downs — but you can control how you respond.
The best approach?
🔹 Stick with a fund that matches your risk profile
🔹 Keep contributing regularly
🔹 Avoid emotional decisions driven by short-term noise
If your KiwiSaver aligns with your goals, stay the course.
If you’re not sure, let’s check it together. I can show you how to use Sorted’s KiwiSaver comparison tools so you can make informed decisions confidently.
💌 Let’s Make Sure You’re in the Right Fund
If you’re unsure about your KiwiSaver fund or want a quick check-in, I’d love to help.
This isn’t financial advice — it’s simply a chance to walk through your options using Sorted’s free tools and ensure your KiwiSaver supports your long-term goals.
📩 Reply to this email or message me directly to book a quick one-on-one review.
Your KiwiSaver is one of your most important long-term investments — let’s make sure it’s working for you. 🌟
Warm regards,
Kara Northcott
Helping Kiwis grow financial confidence, one step at a time
027 666 6784
📩 kara@financialconsultant.co.nz
🌐 kara-northcott-financial-consultant.kit.com
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