Australian share market in freefall

Well, I certainly wouldn’t want to be retiring this week. Another $260 billion was wiped off Australian share markets today, on the 11th straight day of losses. This has not occurred since 1982. It can now officially be called a `crash’, according to analysts. The market had already dropped more than 15 per cent in the past two weeks (and that was before today’s results). Yikes!

Of course, for someone like me, years from retirement, it is a good thing, especially because one of my $500 pension plan contributions was being allocated today. That money willl buy a lot more units than it would have 6 weeks ago. Similarly, units in the managed fund for my son’s investment were being purchased this week, so we should get them for a good unit price. Hopefully the market doesn’t keep falling but we don’t plan to touch the money for years anyway, so we can’t be concerned if it does.

Wonderfully, my hubby is getting really interested in personal finance too. His first words (when the stock market crash stories came on the news) were `We should find some money to invest a bit more right now’. I don’t think we can stretch things any further but I was proud and pleased to see his newfound interest.  

 I don’t know what I’d feel if I was retiring in the coming month or two. I guess it would depend on whether I felt I still had enough invested to keep me living comfortably off the income. However, I guess another way to look at it is that, even though the market has fallen 15 per cent in the past two weeks, this probably really only represents the rise in the general market since last year alone. Investors do, unfortunately, have to take the good with the bad.

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