Archive for blog

Experiences vs Security

Many people would like to travel more and add to their life experiences, but they don’t want to give up their financial security. Is there a way of striking a balance between the two? In this column, Carl Richards suggests you don’t necessarily have to trade off one against the other ;

http://nyti.ms/1t0eHWg

 

 

The New Retirement

Increasingly, retirement is not about stopping paid work but about working differently. People are looking for ways of staying stimulated and making a contribution, while adding to their budgets. In this Harvard Business Review article, the author poses four key questions to ask.

https://hbr.org/2016/04/planning-your-post-retirement-career

 

When Shares Go on Sale – A look back at previous market corrections and the returns after this

Some good historical data here on previous market corrections, the odds are now in your favour !

http://awealthofcommonsense.com/2016/02/when-global-stocks-go-on-sale/

Financial Gurus

Financial TV panels regularly feature self-styled “market gurus” who use often eye-popping forecasts to attract attention to their services. The attraction of these talking heads to the media is they keep people from switching channels. But how many of their forecasts come true? Larry Swedroe investigates how often are they right?

Find out HERE

 

Speculating Vs Investing

Consistently picking stocks that outperform the market is a nice idea. In theory, that is. More details HERE

 

 

Australia Still a Lucky Country

The Reserve Bank of Australia has been leading efforts locally for people to focus on the many strengths of our economy. In a recent speech, Deputy Governor Philip Lowe said while the mining boom is over, Australia still has five key strengths that many other countries would envy.

http://www.businessinsider.com.au/rba-5-reasons-to-be-confident-about-australias-economic-future-and-prosperity-2015-10

Dimensional Fund Advisors

Based in Austin, Texas, Dimensional is a fund management company with a unique selling point, namely that everything it does is based not on speculation but on solid evidence.

It’s also one of those companies that doesn’t like to blow its own trumpet. It never advertises and it barely receives a mention in the financial media press. Yet its influence is growing — the firm recently reported its 77th consecutive month of positive sales. We use Dimensional to provide a low cost core to our portfolios. Below is a video showing the origins of the company and how they use academic research to provide a unique investment offering that sets it apart from other managers. 

Australian Economy – Better than it looks

Just in case you need some cheering up it is not all that bad outside of mining, as shown HERE

Market volatility can make long-term investors start to think like traders.

And here’s why that’s a bad idea. 

 

Five Things Investors Should Not Be Doing Now

Below is a link to an article on what investors should not be doing now.

http://blogs.wsj.com/briefly/2015/08/21/5-things-investors-shouldnt-do-now/

As point three of the article notes now is when it pays to be well diversified. Investors that have significant concentrations in banking and materials will not be faring well at the moment, further those without international assets will not be receiving the benefit of the falling Australian $ and those without bonds will not receiving benefit of these assets in times of volatility. The article makes another very good point at number three. There will be people that now realise they perhaps don’t have stomach for the level of volatility they are currently experiencing. If you think that may be you, now is a good time to review your portfolio, what your options are and how this impacts your longer term plans. As point 5 notes we never know what will happen next.