Home > Resources > Minimise the chance of selling investments at a loss (when markets are down), to fund living expenses

Minimise the chance of selling investments at a loss (when markets are down), to fund living expenses

Picture of Roger Perrett

Roger Perrett

Executive Financial Advisor

Retirement is a well-deserved chapter in life – a time for enjoyment, pursuing passions, and relishing the fruits of your hard work. As you embark on this journey, the last thing you want is to contemplate returning to work due to financial uncertainties. This narrative explores the common concern of having to sell down superannuation and investments during market downturns, offering insights into strategies that can minimize this risk and enhance your retirement experience.

Retirement Bliss – A Time for Enjoyment

Retirement signifies a transition to a life where you can prioritize enjoyment and fulfillment. After years of dedication and hard work, this chapter is meant for relaxation, pursuing hobbies, and savoring the freedom that comes with financial independence.

The Unwanted Dilemma – Selling Investments During Market Downturns

However, the serenity of retirement can be disrupted by the fear of having to sell down superannuation and investments during market downturns. This concern became a stark reality for some during the Global Financial Crisis and the more recent COVID-induced market volatility. The need to make withdrawals from investments during such periods, whether for regular living expenses or ad-hoc payments, can lead to selling assets when their values are diminished.

Strategies to Minimize the Risk

The good news is that there are strategies to minimize the chance of having to sell down investments at unfavourable times. Some of these strategies include:

  1. Diversification:
    • Spreading investments across different asset classes can help mitigate the impact of market fluctuations.
    • Ensure your portfolio is well-diversified, reducing the risk associated with the downturn of any single asset class.
  2. Choose investments to sell
    • In some occasions, not all investments decline at the same time. Selling the least affected investments may mitigate the potential loss.
    • Ensure that all your retirement assets are not invested in one investment.
  3. Cash buffer
    • Benefits: Having a cash buffer or emergency fund can provide a financial safety net during market downturns.
    • Resolution: Establish and maintain an emergency fund to cover unexpected expenses without relying solely on investment withdrawals.

Get your Retirement Ready Score

Unlock valuable insights about your retirement status by completing a quick 7-step questionnaire. Begin your path to a worry-free retirement now!


The Resolution – Seeking Expert Advice

Given the complexity of retirement planning and the importance of safeguarding your investments, the resolution is to seek expert advice. Professional guidance can help you navigate the intricacies of investment strategies, ensuring that your retirement remains blissful and financially secure.

The Call to Action – Contact Us for Tailored Guidance

If you’re concerned about having to sell down investments during market downturns in retirement, contacting us is the next step. Our financial advisors can provide personalized advice, guiding you on the best investment strategies and withdrawal planning to enhance your retirement experience.

To explore strategies that minimize the risk of having to sell down superannuation and investments, we invite you to contact us. Let’s work together to ensure that your retirement is not just a chapter of enjoyment but also one of financial resilience and peace of mind.


This information is general advice. We have not considered your objectives, personal or financial circumstances. You should consider the appropriateness of the advice for your circumstances before making any decision. You should obtain and consider the relevant Product Disclosure Statement and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication.

Past performance is not an indication of future performance.

This presentation has been prepared and presented by Roger Perrett, Freshwater Wealth Management Pty Ltd CAR no.1307016, Alliance Wealth Pty Ltd AFSL No.449221. This information cannot be used or copied in whole or part without our express written consent.

While every effort has been made to ensure the accuracy of the information, it is not guaranteed. It is based on our understanding of regulations and laws as at the publication date. As these are subject to change you should talk to a professional adviser for the most up-to-date information.

To the maximum extent permitted by law, no person including Alliance Wealth Pty Ltd nor its related entities, employees or representatives accepts responsibility for any loss suffered by any person arising from reliance on this information.

Share the Post:

Create wealth for you to enjoy

Start a conversation with us today and take the first step towards a prosperous financial future.

Let's Get Started

Claim the opportunity to meet our expert Financial Advisors, at no cost to you. Gain clarity on goals, get an action plan, and see how we can support your financial dreams.

Ready to get started? Fill out this form to contact our friendly team.

0412 004 665


8/309 George Street
Sydney NSW 2000