Great financial planning finally has a value: 23 per cent more in retirement

Financial planners are familiar with alpha and beta as drivers of long-term investment portfolio returns; but now there’s a third letter to add to the lexicon – gamma – and according to Morningstar, it’s the value created that can be directly attributed to sound financial planning. Portfolios optimised using five techniques identified by David Blanchett, Read more…

Financial Fashion Victim

The global fashion industry is fickle by nature, pushing and then pulling trends to keep hapless consumers forever turning over their wardrobes. Much of the financial services industry works the same way. Fashion designers, manufacturers and media operate by telling consumers what’s in vogue this year, thus artificially creating demand where none previously existed. What Read more…

The Vacationers’ Guide to Investing

Two colleagues went on vacation separately. One had a great time. The other had a miserable experience. Their respective stories provide valuable lessons, not just about taking a holiday, but about investment. Frances booked a beach house up the coast for a week. Brian opted for six nights of bush walking through the mountains. Frances Read more…

Down the Investment Mineshaft

Success in investment doesn’t just mean knowing what risks to take. It also means avoiding the uncompensated risks associated with laying out big bets on individual companies or sectors. In February 2008, the global credit crisis was underway. With investors in a defensive mood, The Australian Financial Review suggested that the minerals resource sector of Read more…

Retirement Income Planning: Live Long and Layer

YOUR MONEY  FINANCIAL PLANNING WEEK 2013   thewest.com.au Monday, August 26, 2013 Australians are likely to live longer and could spend more than 30 years financially dependent on super, investments and the age pension.  In 2010-11, the average retirement age was 53.3 years, 57.9 for men and 49.6 for women, according to the Australian Bureau of Statistics. Today’s 65-year-old man has a life expectancy of Read more…

Second Guessing: The Economy and Markets

Markets recently have had a rocky time as investors in aggregate reassess prospects for monetary policy stimulus in the United States. Is this something to worry about? The world’s most closely watched central bank unsettled financial markets by flagging it may start later this year to scale back its bond purchases. Under this program of Read more…