Keep Calm and Carry on Investing

It’s easy to invest when markets are running smoothly but when they fall your confidence can be sorely tested. More uncertainty in investment markets means more volatility and a need to review your investment strategy.  

Start with the basics. Focus on your goals and objectives. If you have long term investment goals, remind yourself not to get too distracted with short term changes in the market. Reversing your strategy will cause you to lose value and lose time – both key ingredients for achieving your goals. 

Review your attitude towards risk and reassess whether your investment strategy is a good fit for your risk tolerance. When things are going well in investment markets it is easy to take on more risk than you should. Find the right balance between risk and return so that you can achieve your goals while taking an acceptable level of risk. 

Stay diversified. Markets can change quickly, and moving all your investments into one asset class might work in the short term, but it means you are taking on more risk by having all your eggs in one basket. Don’t sell in a panic or you will crystallise any paper losses. Selling up and putting all your money into very safe investments will lower your return, possibly making your goals harder to achieve.  

Evaluate all the options you have. This might mean getting more information from an expert who you trust. Make sure that any advice you get is from someone with a balanced or independent point of view who can point out the downsides as well as the advantages of different investment options.  

Confident investors have a long-term plan that they stick to, they do their research, they aren’t swayed by emotions such as fear or greed, and they are successful at building wealth.

 

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Liz Koh is an Authorised Financial Adviser. The advice given here is general and does not constitute specific advice to any person. A disclosure statement can be obtained free of charge by calling 0800 273 847.  For free eBooks, go to www.moneymax.co.nz and www.moneymaxcoach.com

Tony Cutting

Hi, I am Tony Cutting and I started surfing my home break when I was around 7-8 years old.  I am now over 50.  In 2005/06 I was responsible for establishing the Waikanae Surf Club on the Kapiti Coast in New Zealand.  As of 2016 the club now has over 50 families.  To support the club I established the Waikanae Surf Shop and now I am on a mission to help as many people I can get into our great sport.

I am a Life & Career Coach and have spent most of my last 30 years coaching sports teams or people and helping them be as successful as they can be.

If you are new to Surfing, you'll love our sport, if you are older and just coming back (like I did in my 40's) then you'll find life is about to improve.

Life is just better when you Surf.