2020 is certainly starting out as the most challenging of years – it’s been a tough time for us all, what with the bushfires, floods and now Covid-19.
We wish to extend our best wishes and to let you know that we continue to be at your service, so please don’t hesitate to call if you have any queries.
Additionally we wanted to update you investment wise, in light of the extreme volatility we are currently witnessing in world share markets which have – in all frankness – affected everyone’s portfolio, whether invested conservatively or for high growth.
Short term ups and downs can be unsettling, but history shows that markets stabilise and recover – eventually. As your advisors, we want to assure you that we are not panicking and are trusting in the long term investment strategy we have agreed upon, to see us through this correction.
Over time we have endeavored to construct portfolios that are attuned to your long term aims and goals, are well diversified using investments that are well researched and that we believe, are ‘best of breed’ in their asset class.
In constructing your portfolio we have invested your funds across multiple asset classes / sectors which provide you with diversification. What this means is that your portfolio is not entirely exposed to the current market volatility that you will have seen in the news and this should help with reducing the impact of these turbulent times.
So as you can gather, we are recommending that all our clients remain invested, however there are strategies that can be employed to assist in limiting the stress your portfolios are experiencing.
Pensioners – You might consider dropping the amount of monthly pension being drawn from your superannuation to the minimum allowed under legislation – or deferring pension payments for a few months if your cashflow allows. This was a tactic we employed for some clients during the GFC which proved successful, as it allowed more capital to stay invested as and when markets recovered.
Accumulators – Rest assured that whilst you continue to add to your fund either via Superannuation Guarantee SG Contributions or your own additional contributions, you are effectively now purchasing assets at a cheaper price than 12 months ago. You might also consider adding more money to your accounts* although we acknowledge that may be only for the brave in these extremely volatile times and again depends on your cashflow. (*Some rules/limits regarding adding to further funds to super may apply, please contact us if this is of interest to you.)
So once again, please feel free to call your adviser to discuss any aspects of your portfolio’s or in regard to the strategies mentioned above. While we have curtailed face to face meetings for the moment, we remain available by phone, email, Skype … Facetime even! It’s very much business as usual.
We are thankful and grateful for your patience and understanding you have demonstrated yet again in these unprecedented times.
As always we remain at your service.
Please contact Integrity One if we can assist you with this or any other financial matter.
Phone: (03) 9723 0522
Suite 2, 1 Railway Crescent
Croydon, Victoria 3136
Email: integrityone@iplan.com.au
This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.