How Covid-19 has changed retirement money advice forever. The Wall Street Journal

When the Covid-19 crisis started to go on the boil in Asia, the heat could be felt everywhere in the world. Markets have been volatile and the rand has devalued, making many of us feel poorer. Businesses took a major hit as containment measures shut down economies, turning off cash taps and eliminating demand for many goods and services. Few saw this one coming, which is why many companies have been unable to survive these past months and have laid off staff. For retirees and near retirees, Covid-19 has changed the investment rules. It's quite clear, for example, that having a three-month cash nest egg is no longer enough to withstand a major episode like a pandemic. Assets like property can't be liquidated to help you quickly access funds and it's often a bad idea to sell stocks when they have taken a hammering. But having too much cash is risky, too, with signs that inflation will gather pace to compensate for government bail-out spending across the globe and leave your purchasing power behind. The Wall Street Journal sets out how financial strategies are changing as retirees and near retirees try to cope with the Covid-19 induced downturn. – Jackie Cameron

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