As a young person/mid lifer accumulating super and whose retirement is some way away... What are the positives of this market fall and how can I ensure I am positioned to benefit from the growth post COVID 19?
Kate in Fremantle
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I have assumed that your risk profile will be similar to a balanced investor and have 70% of your portfolio in growth funds.
While your retirement being a long-term goal you may be able to take advantage of current market falls at present. Assuming that you are employed and have Super Guarantee Contributions into your super fund the investment will be ‘cheaper’ than they were at the beginning of 2020.
With this in mind, when you make a contribution the unit or share price will be lower, which should result in a greater number of units that your funds can purchase.
Unit Price 01/02/2020 - $1.30
$1,000 contribution would purchase 679.23 units
Unit Price 01/04/2020 - $1.05
$1,000 contribution would purchase 952.38 units
Assuming when markets recover and the unit price is now $1.55 your value would be $1,476 compared to $1,053, a difference of $423.
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