Retirement investment in a climate of economic uncertainty

World politics appears to be getting more turbulent by the week, not only within specific halls of western power but between nation – trade wars with China, trade uncertainty surrounding the looming Brexit and concerns about new conflict with the Middle East. In Australia, interest rates may be sinking towards 0% and the Sydney Morning Herald thought it worthwhile in September to explain how negative interest rates work.

Markets always dip up and down with the world’s fortunes, and for many investor’s there’s plenty of time to plan and respond and decide when to hold for the long haul or when to shift investments.

However, if you’ve already retired, or you’re on that retirement threshold, you might be concerned about the impact of volatile markets on your potential retirement income. Any decisions based on panic might result in losses and missing out on the recovery (which might include an upswing).

The 2008 Global Financial Crisis and the decade after gives us some pointers on how to respond. In 2018, AMP Capital offered 7 lessons for investors following the GFC, including the importance of diversification and a good asset mix.

Rather than have a knee-jerk response to global economic uncertainty, however close you are to (or if you’re in the midst of) retirement, the key is to review your assets and investments to ensure you have a good asset allocation, that you understand the risk profile of your investments, and that your investment portfolio is positioned for long term growth, with some options to support short term cash flow as required.

Superguide has some insights on planning for the long term even through economic turbulence. And naturally, if you would like to speak with a professional investment adviser about how your portfolio is positioned, contact United Global Capital today on 03 8657 7640 or email info@ugc.net.au for a no-cost, no-obligation consultation.

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