Look at each of these photos for a few seconds. What do you see?
What comes to mind?
If you are like most people, you see;
It's human nature. Based on the information we have, we make assumptions in order to draw a conclusion. We do it all the time. Here's some more:
In each of these scenarios, we are quick to make a judgement without all the information.. We don’t really know; we make a guess based on our past experiences, what we might have heard, how we were brought up or by just plain wishful thinking.
When it comes to your financial decisions, do you do the same?
"Term deposits are safer than shares"
Depends how you look at it. In the long run, the erosion of the value of your money due to inflation can be worse than the short term fluctuations you'll experience from the share market.
PRO-TIP Get to know the basics of investing
"I'll spend first and save what's left"
Let me guess, there's nothing left!
PRO-TIP The absolute foundation of wealth creation is to spend less than you earn. Create a budget.
"Superannuation is a dud investment"
Superannuation is just a tax structure. It allows you to buy pretty much any investment you like. If you don't like your investments, don't blame superannuation. Choose different investments.
PRO-TIP Check out this to get your superannuation in order.
"I'd never qualify for a pension"
Says the client who has missed out on $63,000 of pension payments since he retired.
PRO-TIP If you're not sure if you'll qualify for a pension, chances are you can afford to get advice to find out.
"My advisers have my best interests at heart"
The vast majority of financial advisers have conflicts of interest, whether that be through accepting commission and other sales incentives or because of ties to product providers.
Make no mistake, these conflicts distort the quality of advice.
PRO-TIP Ask your adviser these questions.
"The amount of insurance in super will be enough"
PRO-TIP Don’t rely on what’s in your superannuation. It’s almost always inadequate.
When it comes to your financial decision-making, assumptions are dangerous. It never pays to assume. It too often only costs.
And these costs can be huge.
It might cost your ideal retirement, your dream holiday, your bigger house or even your kid's education.
These are far too valuable to leave to a set of assumptions.
Ever wondered how your investments are going compared to everyone else?
Well maybe you should. Not only will this tell you how the markets are performing, but also how well you (or your adviser), are performing.
This FREE digital download is a brilliant resource that provides performance for a broad range of share and fixed interest markets, as well as average returns over any time period.
Join Our Community
Subscribe to regular updates sharing our best ideas on wealth management and personal development. Just enter your email for tips and resources to get your financial house in order and positively impacting your life today.
IMPORTANT This information is of a general nature only and may not be relevant to your particular circumstances. The circumstances of each individual and investor are different and you should not act on this information without speaking to a financial, tax or legal adviser, who can consider if the financial product and strategies are appropriate for you. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. See full Terms and Conditions here. Note the figures in the download represent the market return so you'll need to allow for the cost of running your investments.