Recency Effect

Why do Investors often buy high and sell low? This is the opposite of a winning investment strategy but investors often give considerable attention to short term performance figures when making investment decisions. It could be a result of the ‘recency effect’ You probably know that many of our financial decisions aren’t made rationally: emotions …

Are your affairs in order?

I was scrolling through Stan looking for a new TV series to watch the other day and a show called Vida came on. Two sisters, in their late 20’s, return home after the death of their mother.  They stand to inherit a run-down apartment building with a ground floor bar.  They make plans to sell …

Responsible Investments

Options for Ethical, Responsible & Sustainable Investments The Financial Adviser Standards and Ethics Authority (FASEA) Code of Ethics comes into force on 1 January 2020.  This will be the new minimum standard of conduct for Australian Financial Advisers. One of the more interesting new standards is as follows: Standard 6: You must take into account …

How do I make my house more environmentally sustainable?

How do I make my house more environmentally sustainable? (and save money in the process) It seems that our environment is under stress, we have water shortages and the cost of electricity will continue to rise.  There are many ways you can make your house more environmentally sustainable and potentially save money in the process. …

How do I start a savings plan for my Children?

There are 4 basic options: Save into a bank account Contribute to a managed fund Purchase an investment bond Start an education bond. See https://www.moneysmart.gov.au/managing-your-money/saving/saving-for-your-childrens-education Which option is best for you? That depends on the age of your children, the amount of money you wish to invest, the level of risk you are willing to …

Can’t survive on $200k Salary

Australian Federal politicians currently receive a minimum salary of $211,000 before tax. That’s $5,334 per fortnight net of tax. It is significantly more than the average wage which is more than double the average full-time salary. Despite this generous remuneration there have been multiple instances of politicians complaining about their difficulty in surviving on this …

How much Superannuation should I have at age 40?

The answer depends on 4 things: The number of years remaining until your desired retirement age. Your desired retirement income. The amount of contributions you will make going forward. The rate of return you achieve. According to the Association of Superannuation Funds of Australia (ASFA) the median male super fund member aged 40-44 has $99,959. …