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‘Low Risk’ Term Deposit Alternatives
Read more: ‘Low Risk’ Term Deposit AlternativesTough to earn a buck for nothing these days. While that’s always been the case for our labour, there was always the illusion of some free cream from our money in the bank. Illusions, being illusions, this wasn’t strictly true. There was always tax and inflation nipping back any real return for doing nothing. Illusions are comforting though. If an investor thought they were getting a good enough return, then they wouldn’t go out of their way to chase one. An RBA cash rate of 0.10% presents a whole new mind game for investors. Some of the more opportunistic types in the…
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The Value Dilemma
Read more: The Value DilemmaEvery investor will face a conundrum at some point: what to do when their beliefs don’t work. Sometimes it’s an assumption that becomes lore. A favoured company paid a dividend for 20 straight years. Of course, it’s not going to ever stop paying a dividend… then it stops paying a dividend. A dagger to the heart! An outrage, there were plans for that money! An assumption gone wrong. Yet of all the things that can go wrong with an individual share holding, it’s probably a minor one. Sometimes it’s evidence. Academic research has shown certain companies have historically compensated investors…
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Vulnerability & Financial Abuse
Read more: Vulnerability & Financial AbuseAgeing brings the curse of vulnerability. Cognition inevitably declines, reflexes inevitably decline, eyesight and hearing inevitably decline, while muscle mass is on slow glide downward as we lose 3-5% each decade from our 30’s. That means strength and balance inevitably declines. There are some preventative measures we can take, but try as we may, in some areas we may be struck randomly by age related disease and decline regardless. If you think that’s negative, we’re not finished yet. Vulnerability increases risk. There may be the need to outsource more tasks and rely on others for help. Worse, some may see…
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Gifting That Might Be Taking
Read more: Gifting That Might Be TakingThe country and the world have been financially disrupted this year. There’s a section of haves who have done exceptionally well considering the economic calamity. There are a section of have nots who have done exceptionally poorly. This is nothing new. As economies shift, winners and losers are created all the time, though usually not so widely in such a short space of time. Australia has remained prosperous for more than a quarter century, if you’re judging based on recessions, but it hasn’t happened without creating wealth divisions. While you’d expect older generations to have a greater share of wealth,…
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Election Results Irrelevant, but Vital
Read more: Election Results Irrelevant, but VitalIt is a week out from the US Presidential election. We’ve deliberately avoided the election until the very last moment. Why? Its lack of importance. We hear ‘this is the most important election of our lifetime’ almost every election. On some issues, maybe it is. When it comes to investing, it rarely is. Nor should an election ever be regarded as something to focus on. If an investor is perpetually scanning the horizon for the next event, then they are perpetually distracted by things they can’t control. It isn’t conducive to disciplined investing. Agonising and handwringing over this election, or…
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