I’m a Grown Man, and I’m Scared

Hi Barefoot,

I’m worried about what to do with my superannuation. I want to retire in the next 12 months as I turn 66 in July. But I’m scared that if Russia or China invade, this would have an impact on the share market which will directly impact my super fund. What do you think?

Bill

Hi Bill,

I have absolutely no idea what Putin or Xi will do, or the effect it will or won’t have on the market.

After all, who’d have thought a global pandemic would cause a boom in the share market?!

Yet, I am very sure that by pouting about Putin you’re overlooking your biggest financial risk:

Inflation.

If you’re retiring on a fixed income, you need to ensure that money won’t be whittled away.

The price of stuff is currently rising at the fastest pace in 11 years. Ronald Regan once described inflation as “violent as a mugger, as frightening as an armed robber and as deadly as a hit man”.

So, how do you outrun inflation?

Generally by investing in businesses that can put their prices up. Of course, doing that buys you a ticket on the stock market rollercoaster … which will work out so long as you don’t jump off mid-ride!

Seriously, Bill, I don’t think it’s good for your wellbeing to worry about things you can’t control. I’d suggest you sit down with a financial advisor and work through a strategy that will make your money stretch.

Scott.