Financial tip from Director David Myers

A lot of my clients are asking about whether to continue their regular investment plans into their investment portfolios. Yes, stock markets have certainly taken a tumble and there are short-medium term impacts however, many good businesses are unlikely to see any structural deterioration over the long term.

At times like these, reviewing your expenses budget and cutting back on non-essentials is a good start. Of course, if your income has suffered as a result of job loss or reduced hours, or you are concerned that your employment is at risk, we can certainly press pause on your regular contributions and where possible set aside those funds in cash or offset accounts. When things are more certain you can then easily invest the funds back into the market.

Warren Buffet, considered to be the most famous investor, has always said to be greedy when others are fearful – this is certainly the time to do so.

If your jobs are secure I think you should continue to invest and take advantage of the low buy prices. Ride out the short term changes. Investing is a long term plan. We continue to ensure that your portfolios are invested in high quality companies and continue to be well diversified.

DMA and COVID19: From this week we will have a reduced presence in the office, however, I am always available for chat via phone. Our office phone number will continue to be in operation.

Our role as your financial adviser is to help you keep your head when others about you may be losing theirs and to provide some clarity to see the bigger picture.

Your longer term goals (financial or otherwise) shouldn’t be shaped by some (likely) short term turbulence in the sharemarket along the way and it’s important to keep that in mind.

If you have any questions please don’t hesitate to ask, that’s why we’re here.

Kind regards,

David

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