-
Wade Vs. Plunge
Read more: Wade Vs. PlungeThe eternal investment question – “do I invest my money all at once or do I invest smaller amounts at predetermined intervals?” Otherwise known as lump sum investing vs. dollar cost averaging, or as our US colleague Jeff Troutner once termed it: wading vs. plunging. What’s the best option? Before that, what’s behind the question in the first place? Fear and uncertainty. Fear of making a financial mistake because of uncertainty about the future. Both losing money and making a mistake can make us feel a little silly, but we need to acknowledge uncertainty is merely life we haven’t yet…
Topics:
-
One Hit Wonders
Read more: One Hit WondersThe one hit wonder is a particular phenomenon in music that can be traced back to the inception of the Billboard Hot 100 music chart during the late 1950’s in the US. Generally speaking, it’s a singer or band who may have topped the music charts (or at least made the top 10) in a particular country, or even around the world, with one song, but never came close to reaching those heights ever again. It can be a subjective measure. Maybe an artist had a big hit across the world or in the US and was never really heard…
Topics:
-
Client Alpha
Read more: Client AlphaThe concept of adviser alpha has been floating around for several years now. We talk about it on a regular basis without explicitly naming it, but we specifically discussed it back in 2019. From an adviser context ‘alpha’ is essentially an excess return above what an investor may have achieved otherwise without an using an adviser. That’s the value the investor receives from an advice relationship. Various sections of the industry define adviser alpha (or adviser value) various ways, but from a high level these are the key areas: Goals: has someone identified their goals and do they know the asset…
Topics:
-
Inflation or Not?
Read more: Inflation or Not?From pooches to second-hand cars, to homes in regional areas, to ground beef in the supermarket. Everyone has a story about how their money is buying less. Eight years ago, you could get this good girl delivered to your front for $1300. Today, or more precisely back in January, she went for $7990, and you had to front for delivery. While that’s a jump over 8 years, a good part of it has occurred recently. The pandemic had a spike of people wanting dogs. Breeders can only supply so many dogs, so they had the luxury of pricing according to…
Topics:
-
Heirlooms
Read more: HeirloomsOne of the staples of investment media and stock picking newsletters are the ‘if you had invested…’ stories. The writer will pick a well-known stock, go back to a point in time (usually the IPO) and inform us how many millions we’d have today, if only we’d invested a specific dollar amount into that stock. It’s meant to make us feel like buffoons. Why didn’t we jump aboard a stock than now seems completely obvious in hindsight? There’s even a website dedicated to the concept. Stock Time Machine. This tracks some of the largest listed companies in the US. Put…
Topics:
Financial Planning, Investment & Insurance Solutions
Dedicated to helping people across Dubbo & NSW with their financial needs
