Q: My husband wishes me to acknowledge that I am wrong, and I want your opinion.
A year ago he decided to reduce our risk in KiwiSaver and transfer 100 per cent of our funds into a cash fund. But instead I placed them into a conservative fund following the advice of our adviser.

The philosophy of my husband was that we would at least keep the value of contributions made. There would be no growth, but it would have avoided the personal pain of losing savings if I had done exactly what he wished.

My philosophy is that it is irrelevant to look at the short-term loss because we are so far away from withdrawing funds, and we would not cover fees, etc, in the cash fund.

The reason for change was we felt that the rising sharemarket wasn't going to last as there were too many economic clouds on the horizon. But Covid-19 was a black swan event unforeseen a year ago.

Obviously we have lost a few thousand dollars in the value of the fund over the past weeks. We are in our mid 50s in secure high-paying jobs with no plans to retire early. What would you have done?

A: Oh, no! There's nothing more dangerous in investing than someone who thinks they've made a good call on timing the markets. More on that in a minute.

My first reaction to your letter


Bank safety

Locking it away

Keeping the dividends

Active v passive