There are three words that many experts find hard to say.
“I don’t know”.
In complex circumstances with so many unknowns, "I don’t know " though can be a better option than guesswork.
We suddenly have all sorts of economic experts making all sorts of predictions, but I can tell you, much of that economic analysis is guesswork.
So what does that mean for your super balance?
Investment returns in 2019 were terrific, except for cash and Australian small caps.
As is often the case, a good sector one year is not so flash the next, and small caps were top of the pops in 2018 so the two-year number is good. With growth super funds delivering around 10% a year for a decade, it's tempting to expect similar good returns in future. The Morningstar Gameboard below shows only one negative asset class result over the last five years.
Attention is a precious resource.
And as with any resource, scarcity creates value.
In the digital age where noise is everywhere, those who can capture the most attention are said to win.
Around this day ten years ago, you probably had plans in place for the year ahead.
Maybe you even achieved some of those goals in 2010.
But I’m guessing that you could never have planned for some of the unexpected events, opportunities, twists and turns of the decade you’ve just lived.
Take me for example.
A routine task for financial journalists at this time of year is to write a summary of the year in markets and to survey economists on their expectations for the coming year. These so-called ‘year-enders’ are worth revisiting 12 months on.
Ask a farmer about average rainfall and he’s likely to react sceptically. Knowing how actual rainfall varies from year to year, farmers carefully manage their crops and irrigation. It’s a lesson many investors could learn as well, with published ‘average’ returns masking a wide range of possible outcomes.
Ever wondered how your investments are going compared to everyone else?
Well maybe you should. Not only will this FREE resource tell you how the markets are performing, but also how well you (or your adviser), are performing.
The lure of trying to time the market may tempt even long-term investors. But outguessing markets isn’t as straightforward as it sounds.
The financial services industry is getting a fair shake up at the moment. It’s not just because of the Royal Commission either. The Federal Government has been looking to raise ethical standards for quite some time now, with new regulations coming in to effect in January 2019.
For us at wetalkmoney, we are largely immune to these changes as our business model of client first, non-conflict advice is the space that regulators would seem to want every adviser to be. So it’s pretty much business as usual for us.
I have a sincere hope for my industry though.
We’ve recently discussed perhaps the most powerful retirement strategy of them all - work a bit longer.
Well, now it seems that leaving retirement behind to return to the workforce is increasingly popular among older Australians. I came across this article originally published in the Sydney Morning Herald which shares the experience of 2 such people, and highlights the challenge of getting your retirement decision right.