The stock markets are currently seeing losses due to the impact of the global pandemic. Consequently, retirees are being cautioned against withdrawing large amounts of their savings. They’re also being cautioned against selling stocks at this time. It has the potential of putting retirees at greater risk of having big losses as markets continue to fall in 2020. The advice from the experts is to try and wait out this testing time. Then, rebuild fund values when the stock markets eventually start to recover.
Waiting to sell assets is a great challenge for many self-funded retirees during this time. Now, may not be the right time to be selling stocks. Many people have lost their part-time jobs. For the semi-retired, the loss of a job can be catastrophic. But, if you can hold onto your shares and savings, it’s a good idea. Paul Moran, the principal of Moran Partners Financial Planning, says, “Don’t become a forced seller at lower prices. It means more shares have to be sold at discounted prices to make up the amount being taken out, which results in fewer shares owned.”
Read the full article for the whole picture: Avoid doing serious damage to your super in falling markets
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