Will Donald Trump’s presidency lead to a stock market crash and how will that affect your retirement plans?
We’ve all watched on as Donald Trump has taken a wrecking ball to the established world order over the last few months. This has led to what is officially called ‘a correction’, where share markets have fallen by over 10%. Will this turn into a ‘crash’ where markets fall over 20% from their highs? The real answer is no one knows. Trump’s policies are so aggressive that no one has any precedence or prior experience of them to accurately gauge their impact on investment markets. Trump has openly announced that there may be more economic pain to investment markets as he reshapes how countries defend themselves and trade with the US.
We’ve fielded several calls from people who’ve recently retired or are close to retiring, concerned that their Super or Pension fund balance has dropped since the start of the year. This is the first ‘correction’ on world investment markets for several years and it naturally makes people worried about their financial security. No one retires and wants to have to go back to work for 5 years to rebuild their super balance.
Establishing a solid financial plan for retirement means getting your head around a few different concepts. One is having at least a basic understanding of how investing works. Another is accepting that there will be investment corrections and crashes and having a proven plan in place to protect against them. Once you have these, you can sleep better at night.
At Eclipse our style has always been to explain things to people over a couple of free interviews before we decide whether to proceed to formal written advice. This provides time to identify where you’re at, how much you have got in the pot, how old you are and what sort of income and lifestyle you’re chasing in retirement. We then look at where your money is invested now and explain how investment markets work in simple terms on a whiteboard. If protecting against market crashes is important to you (and it always is!) we will then explain how we protect retirees against crashes. We’ll also look at how things like Age Pension work and explain the pros and cons of the different types of super pensions and what suits your situation.
All this is done over a coffee in one or two free interviews and should give you plenty of food for thought. Once we understand the scope of work required, we will clearly quote any fees to proceed with formal written advice so you can make an educated decision.
For a free consultation with local people who understand the complexities of these or any other financial matter, contact Eclipse Financial Planning at Cannonvale on 49467359 today or visit www.eclipsefp.com.au
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