Investment

The Best Time to Plant a Tree Was Always 10 Years’ Ago

They say the secret to successful comedy is all in the timing. Funnily enough, the same goes for investment or debt management. But unlike with comedy, when it comes to money it is usually best to get in early. That’s because anything that earns interest is worth acquiring earlier - and anything that charges interest is worth paying off as soon as possible.

Haul up the Anchors!

The ‘mental side’ of money management is always important. Given the events of 2020, how we think about money has become even more vital. While no one really knows what the lasting economic impact of the Coronavirus will be, the one thing that we can be certain about is that many of our working assumptions will need to be changed. The new world will not be like the old world. We will all need to think differently when it comes to our finances.

Restorations Don’t Always Work Out So Well!

Covid 19 means that many household budgets are under pressure. Many of our clients are looking closely at all of their spending. For some people, this review includes thinking about their life insurances. As we will discuss below, any decision to discontinue or reduce life insurance should only be made after very careful consideration. Restorations may not turn out the way you think they will.

The Wealth Equation. Maximise, minimise, optimise.

The ability to turn a complex idea into a simple set of habits is usually the secret to success. This week, we thought we would ‘boil’ financial management down to a simple mathematical formula which many successful people have applied in their own lives. We call it the ‘wealth equation.’

Time is the investor’s friend

Average Australian share prices dropped by almost 20% in the 12 trading days following February 20. This week, we look back at an article we reviewed in 2018 to explain what a drop like that should mean for a patient investor.

Black Swans

If you have been following the financial news lately, you will probably have heard people talking about a potential ‘black swan event.’ They are usually referring to the Coronavirus. But, what’s all this about black swans?

Asset Rich, Cash Poor

You may have heard the phrase, ‘asset rich, cash poor.’ No one likes to hear anything with the word ‘poor’ in it, but if you have to be poor, this is the best way! If you or someone you love is asset-rich and cash-poor, there are various ways that you can use those assets to improve your financial situation.

Sleeping Easy in Retirement

For households with at least one person aged 65 or over, the Australian Bureau of Statistics recently compared average household wealth between those that owned their own home and those that did not. The difference was enormous and the message is clear: owning a property – or a similar kind of asset - is critical in creating wealth. Our job often includes identifying that similar kind of asset.

Negative Gearing

Negative gearing is one of the most common things clients ask us about. We have written about it before - but the questions are so persistent we thought we should cover it again this week.

Income returns and capital growth

There are two types of investment return. They are both good. But which one you prioritise depends very much on your personal circumstances.