Retirement should be about freedom. But too many Australians are retiring without freeing themselves from the biggest master of all – debt and the Banks they owe money to.
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.
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.
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.
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.