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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…
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The Rich & The Lure of Alternatives
Read more: The Rich & The Lure of AlternativesNovelist F. Scott Fitzgerald once said, “The rich are different from you and me” to which Ernest Hemingway responded: “Yes, they have more money”. As with many famous anecdotes, there was some embellishment and it didn’t quite happen the way you might expect. However, Hemingway was right. One of the clear differences is the rich do have more money, but not only are the rich different because they have more money, it’s also been suspected they tend to invest differently to us average folk. We finally have some conclusive proof on that. A study titled “Asset Allocation and Returns in the Portfolios of the…
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Working Class Returns
Read more: Working Class ReturnsSeven News recently featured a story on rocker Jimmy Barnes. Jimmy was selling up his family home in Sydney to move to his new base in the Southern Highlands of NSW. What was the price to take over the working-class man’s converted Botany warehouse? Jimmy was hoping to get $4 million, after paying $1.61 million 17 years ago and spending another $1.6 million on renovations. The Seven reporter described it as a “clever investment”. If Jimmy and his family hit the $4 million sale mark (being Sydney, they’ll likely blow past it) we still wouldn’t describe it as a “clever investment”. Putting…
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The Blind Leading the Blind
Read more: The Blind Leading the BlindOn the 4th of August, CommSec, Australia’s largest online broker released a statement. It began: The limits on trades without a cash deposit are changing from 04 September, 2021. In light of recent market volatility, CommSec is changing trading limits to help protect our customers and minimise risk associated with investing and settlement. In the good old days, there was something known as T+3. You could buy a stock and your broker would give you 3 days to settle the trade, i.e. come up with the money. It provided an open window for retail traders to chance their arm on buying…
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Good and Getting Better!
Read more: Good and Getting Better!“Good and getting better!” Those are the first words he says every time he visits our office. The question he’s asked that prompts such positivity? “How have you been?” He’s a long-term client, now into his mid 50’s whose optimism never fails to impress us. You might be wondering why is this man so positive? There could be plenty of reasons. Some people may call him an optimist. “Well, you know, I think there will be a market crash next year.” Those were some of the words of a young man who called us up trying to figure out some…
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