Investment

 Talk to a group of investors and it quickly becomes apparent that there are many differing motivations, strategies and attitudes amongst them. A little honest introspection can lead you to a better understanding of your own objectives and the impact your personality has on your activities on the Aussie sharemarket. Noted financial editors and fund…

Would you let someone select your first car to buy or indeed even a house? Interestingly, that is exactly what some people are doing with their retirement savings. A recent report released by REST superannuation said that about 1/3 of all people aged between 18-30 years old don’t open their superannuation statements or know what…

2019’s rampant bond rally came to a halt this month as bond yields rose, causing bond prices to fall across most major bond markets. For example, the mostly widely followed global bond index – Barclays Global Aggregate Bond Index – lost 1% in September, which is sizeable given it nearly wipes out a whole year’s…

Australia’s stock market fortunes follow the US. So you absolutely need to keep your eyes on that market. The good news is that the US economy remains strong. It’s the most resilient developed economy in the world. But it simply cannot avoid the business cycle. And the evidence suggests the business cycle is turning down.…

Conventional approaches to fixed income investing rely on bond yields to generate returns. Most of the returns come from accumulating portfolios of bonds to harvest yield. Simplifying a little, bond yields represent the return from holding bonds to maturity and comprise the bonds’ interest income plus any discount or premium embedded in bond purchase prices.1…

The Power of Compound Interest On the topic of compound interest, Albert Einstein famously said, “Compound interest is the eighth wonder of the world. He who understands it earns it… He who doesn’t, pays it…” Compound interest, in simple terms, allows you to earn interest on your interest. It is the result of reinvesting interest, rather…

. Importantly, the level of risk that you are comfortable with can be different from the next person. Given this, when it comes to investing inside and/or outside of superannuation, whether over the short, medium or long-term, one of the first ports of call is determining an appropriate investment risk profile. A common way to do…

Understanding your own Appetite for Risk Understanding your appetite for risk is key when considering an investment strategy. Risk profiling is the process of finding your correct level of investment risk. This takes into consideration your risk capacity and risk tolerance. Risk capacity is the level of financial risk you can afford to take, and…

Franking credits and the uplift in income they deliver are crucial for every retiree’s investment strategy. The income benefits of franking credits are an intrinsic part of the strategy many investors adopt to attain their retirement goals. These credits, from Australian equities and hybrids, boost the average dividend yield on Australian shares by around 1.5%. But those benefits…