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Two men took a truck full of apples to market and sold them for $1 each, which incidentally was the same price they paid for them. At the end of the day, one of the men said to the other, “We’ve sold all the apples but we don’t seem to have made any profit.”
“I know” replied his friend, “I think we need a bigger truck.” In the words of that celebrated US Philosopher, Elvis Presley, “we need a little less conversation and a little more action please”.
This year’s Budget has an emphasis on retirement planning and contains several important considerations which may affect both retirees and pre-retirees, explored further below.
Remember, these are not Law yet, and could change because of the argy bargy of politics I honestly didn’t think I’d be surprised by anything that was revealed by the Royal Commission in to financial services. Well, I should have known better!
William Bernstein has several good reads, including the one I’ve just finished The Investor’s Manifesto, Preparing for Prosperity, Armageddon and Everything in Between. (yes, I was lured by the title)
For those that haven’t heard of William Bernstein, his status is legendary in financial circles. There’s a couple of things that I really like about him –  “It can’t be that simple, surely”, is something I hear a lot.
People just assume that money management is complex. That’s no surprise really, as the traditional financial industry is built on the premise that complexity equals value or to be more pointed, the more complex the solution, the more someone should pay for it. The industry is very willing to sell you this crap. The media don’t help either as eye-grabbing content sells.  When you haven't got much capital of your own, the road to financial security can seem long and arduous. But the truth is that wealth building is actually pretty simple.
All it takes is time and the price of a cup of coffee.  So much of what we see in commerce is unnecessary complication masquerading as added value.
In the introduction to his book 23 Things They Don't Teach you About Capitalism, economist Ha-Joon Chang writes:  A third of marriages end in divorce*. Relationship breakdown is an emotionally difficult time, that can have a significant financial impact as well, This impact can continue well into later life. For example, households with men and women aged 55–64 years who haven't divorced earn around $10,000 a year more than those households headed by divorcees**of the same age.
 In the perfect world, we’d all be debt free.
For most of us though, we can’t get by without it. The question is, how much debt is enough? As they say, a little bit of something is alright, but too much is another story. |
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TTLB Investments Pty Ltd ABN 22 600 525 764 trading as wetalkmoney is a Corporate Authorised Representative No. 467267 of
AspectFP Dealer Services Pty Ltd ABN 89 091 004 885 AFSL No. 225738