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Superannuation & Immediate Gratification
Read more: Superannuation & Immediate GratificationOne of the most well-known psychological studies ever done is the Stanford Marshmallow Experiment from the 1970’s. You’ve likely heard of it, know a variation of it, or have watched an interpretation of it somewhere in the media. Testing out the will power of small children or dogs can be entertaining. Dogs being tempted with food are a staple on social media. In the Stanford experiment, the idea was to test the ability to delay gratification. In the first iteration, children were offered an immediate treat (cookies or pretzels) or the choice to wait 15 minutes and be rewarded with…
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Lawyers & Superannuation Insurance Claims
Read more: Lawyers & Superannuation Insurance ClaimsFees. Charges. Costs. How much should someone charge for a service? Whatever the terminology used, the psychology around charging for a service is fascinating. Some service providers can charge without question. High costs from engaging certain service providers have become customary. A small service can take a large financial bite. A fact of life and accepted. What can you do? We’re talking about some lawyers. Before any lawyers feel the need to defend themselves. We’re not quibbling about your fees. It’s like when the mechanic gets a car going in 2 minutes. The owner doesn’t get a discount because they’re…
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2020 June Quarter Review
Read more: 2020 June Quarter ReviewEconomic Overview As in the previous quarter, the major theme of the June quarter was COVID-19. In contrast to the punishment investors took in the March quarter, the June quarter provided some relief. Investors saw market rallies that partially countered some of the steep falls of the previous quarter. The easing of COVID-19 lockdowns, patchy potential signs of economic recovery, along with unprecedented government stimulus and central bank intervention saw risk appetites return rapidly. In the US, early data confirmed the severe economic impact of lockdown measures. However, weekly claims for unemployment insurance slowed significantly with retail sales rebounding strongly…
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Account Based Pension Changes 20/21
Read more: Account Based Pension Changes 20/21Government support for retirees in response to COVID-19 & market volatility What is changing? The Government has temporarily reduced superannuation minimum pension withdrawals for account-based pensions by 50 per cent for the current financial year. Why the change? The intention is to offer retirees flexibility during this period of market volatility. Retirees have the ability to leave more of their retirement savings invested and not draw upon assets after a decline in value. This change was also put in place during the 2008 global financial crisis for similar reasons. Annual payments are calculated on the account balance at July 1.…
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Forget The Property Crash & Focus On Tangible Risks
Read more: Forget The Property Crash & Focus On Tangible RisksWhen people contact us about property investing it’s usually for one of two reasons. “Can you help me get into property investing?” “Can you help me get out of property investing?” On the first question the answer is always no. The high transaction costs. The lack of diversification. The need to use quite extreme leverage. The hope capital gains will wash away losses on income. New properties that can be loaded with fees. Older properties needing maintenance. Uncertainty on locations and rental returns, even within a booming city. These things don’t sit within an evidence-based investment strategy. The level of…
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