Given the improvement in the stock market do you think I should
convert back to the default fund?
Q.
I am a member of the CSS and in February converted my fund
equity from the default option to cash, which realised a loss of
some $80k. I did this because I was due to retire soon thereafter
and didn't want to see my equity decline any further. Subsequently
I have stayed working and now won't retire until the end of August.
The default returns since March have been much better than cash so
I seem to have lost out here also. Given the improvement in the
stock market do you think I should convert back to the default
fund?
A.
Trying to switch backwards and forwards to beat the market is
like changing lines in the supermaket queue - it seldom works. Your
best solution is to agree an optimum asset allocation with your
adviser and stick with that unless you have a major change in
circumstances.
Each week financial advisor Noel Whittaker answers your
questions.
