Blog

July 26, 2017

Getting the jump on extra super contributions

Have you plans to contribute more to super in 2017-18? There are powerful arguments for beginning to make extra regular super contributions from early as possible in a new financial year. The reality is that many of us wait until the final days of a financial year to decide whether to make extra concessional (before-tax) and non-concessional (after-tax) contributions. This often involves a last-minute dash to contribute by June 30 in any year. Among the most-common arguments for contributing early in a financial year is that your money is exposed to chosen investment markets for the full 12 months ahead […]
June 21, 2017

Don’t become a one-eyed investor

Behavioural economists warn investors about a trap known as “confirmation bias”. This involves deciding on a course of action and then looking around for evidence to support that action. The proliferation of online investment newsletters and blogs means that investors can almost immediately find someone, perhaps a so-called expert, who agrees with them. In short, the trouble with “confirmation bias” is that it blocks out contrary opinions and research. As investors try to come to terms with the outlook for lower returns in this low-interest environment, they may be particularly vulnerable to falling into the trap of “confirmation bias” as […]
June 14, 2017

Meet the non-conspicuous saver and investor

The Millionaire Next Door, a long-time personal finance bestseller that has found a place in the bookshelves of generation after generation of investors, has turned 21. In 1994, late US academics Thomas Stanley and William Danko first published their telling blueprint for the quiet accumulation of wealth in an understated, non-showy fashion. This is the opposite of the get-rich-quick approach. Based on comprehensive surveys over some years plus face-to-face interviews of hundreds of wealthy individuals, Stanley and Danko wrote that “prodigious accumulators of wealth” (PAWs) are typically modest in their spending habits; they don’t tend to look like rich. By contrast, […]