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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. Anyone who has witnessed the spending behaviour of wealthy celebrities will know that having more money does not necessarily translate to better financial outcomes. In fact, many people get stuck in a consumption arms race in which every increase in income just gets absorbed by a higher standard of living.
The Australian Securities and Investments Commission just published this handy list. https://www.moneysmart.gov.au/managing-your-money/budgeting/simple-ways-to-save-money Two colleagues went on holiday separately. One had a great time. The other had a miserable experience. Their respective stories provide valuable lessons, not just about taking a vacation, but about investment.
Saving and investing for retirement are important. But for most people, another strategy is far more powerful - working a bit longer.
Keep reading. There are some provocative nuggets here. Political debate regarding the refunding of franking credits for those that don’t pay tax is starting to heat up. I must have been asked by a dozen people what the hubbub is all about.
“Can you explain simply dividend imputation, franking credits and double taxation” It is a little complicated and I reckon the best way to explain is by example. Let me know if this makes sense. I've been waiting to use this story for some time.
With the fairness of our tax system to be the focus in the lead up to the Federal election, I figured here's my chance. I'm not sure who wrote this originally, but all credit to them. It's a great analogy, and while the numbers may not be exactly right, the concept is. Here it is, the 'beer' explanation of the tax system. Once a decision has been made to buy an investment, it is important to consider the best investment structure to use. An investment structure refers to the way investments are legally owned. Many people simply purchase assets in their own name or joint names, when other ownership structures may be more suitable.
Winx, taxes and me having that extra helping of dessert are all pretty sure bets.
I reckon you can add a Federal Labor victory some time soon to that list. What will that mean for your money? To their credit, the ALP have been quite open about their proposals. Here is what we know: |
FPA Certified Financial Planner® Professional Of The Year 2016
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Anthony Sandercock (AR 287974) and TTLB Investments Pty Ltd T/A wetalkmoney (CAR 467267) are authorised representatives of
Boston Reed Pty Ltd AFSL 225738 ABN 89 091 004 885