Investing for kids – ways to save for their future Whether you’re thinking about childcare, education or beyond, saving even a bit now could make a big difference later. It’s natural to want the best for the children in your life, whether you’re their parent, step-parent, carer, aunty, uncle, grandparent or even godparent. And, while money won’t be the be all and end all when it comes to raising happy little humans, you’d probably agree …
Why passive investing now won’t deliver all your goals Passive investment funds used to be a relatively obscure part of the market. But with their popularity soaring in recent years, many investors might now be sceptical about paying for active investment. Market performance over recent years would reinforce that scepticism. Holding a passive mix of mainstream assets has performed very well over the last 5 years. For example, an investor who suffers a permanent 25% …
Spread your money, reduce risk Six out of ten Australians own investments outside of the family home and super. That’s good news. The only problem is that many people are still putting all their eggs in one, or just a few, baskets. The latest investor study by the Australian Securities Exchange (ASX) found 40% of investors admit they don’t have a diversified portfolio. Almost one in two investors think their portfolio is diverse, yet …
Beware the double-edged sword of US tax reform Tax reform in the United States has helped to spur on global economic growth, but investors should be aware of the double-edged sword that comes with the added exuberance, as already expensive share markets continue to edge higher. While company earnings growth in the US – and indeed in Australia – are generally supportive valuations, according to Diana Mousina, AMP Capital’s Senior Economist, the continued strong run …
13 December 2017 What a banking Royal Commission means for investors and superannuants A dip in the value of listed financial stocks including Australia’s Big Four banks the day the federal government announced a Royal Commission into the banking, superannuation and financial services industry, could be a sign of things to come for shareholders in the country’s most widely held institutions. The long heralded Royal Commission into the banking industry could have the effect of …
10 November 2017 When it’s time to listen to the herd Are we in bubble territory? Will there be a correction? You could spend every day looking at valuations and broker notes to form a view on whether the equities bull market is about to run out of steam, but it’s possible the best clues to whether we’re in bubble territory could be gleaned from your taxi driver, at your friend’s BBQ or at the …
08 November 2017 4 steps to help protect portfolios against political risk When Australia’s High Court ruled deputy prime minister Barnaby Joyce ineligible to sit in Parliament because of his dual New Zealand citizenship, the decision briefly sent tremors through equity and currency markets. It was a clear reminder that political risk matters to markets. We face troubling political and geopolitical risk across the world: Trump, Brexit and, above all, the risk of nuclear confrontation …
11 August 2017 Aussie equities still remain a good long-term bet Australian equities have been getting bad press with some investors warning they are significantly overvalued. The narrative goes that we’re in the midst of a housing bubble that will blow up and take the share market down with it. Like every story there are elements of truth to this, but if you silence the noise and take a long-term view – as most investors …
Diversified funds’ performance – how did they do that? 12 July 2017 Comparing managed funds can be confusing because, contrary to current practices, evaluating performance is not all about returns – it’s also about how much risk you as the end investor took to get there. So how can you measure your fund’s level of risk? Below are four broad indicators to watch for: Exposure to growth assets – this is the most common method of …
Living longer, working longer and super balances larger Australians with the best life expectancy in history will have to work longer in order to be able to fund their retirement. But research has found only half of all working Australians will be healthy enough to work in to their golden years. The latest AMP.NATSEM report, Going the distance: Working longer, living healthier, has found the majority of Australians have less than a 50 per cent …
