Why academics like lifetime annuities

Life annuities should be beneficial to rational decision-making individuals in retirement, yet in Australia the number of life annuities purchased remains small, albeit with some nascent signs of growth.

Hold the champagne, that’s not a recovery yet

Many people are claiming that after six years, the market has recovered its GFC losses, but it’s worse than that. In fact, the All Ordinaries index today is barely above its 1968 peak in real terms after inflation, some 45 years later.

What’s smart about smart beta?

Smart beta strategies are rules-based, transparent and claim to outperform the market over the long term. But investors may need to tolerate short term underperformance (Photo: Adam chats to Harry Markowitz).

Ben Graham’s three most enduring principles

In the short term, the market is a popularity contest, where prices often diverge significantly from that which is justified by the economic performance of the business. But in the long term, prices follow business performance.

Invest like Buffett? Diversification, Part 2

How is Buffett anything like a 60-year-old retiree who either cannot or does not want to work full-time anymore? Despite what the books say, you can’t ‘invest like Buffett’ and focus on preservation of capital in retirement.

Give this risk the credit it deserves

The risk that bond investors should be most concerned about is credit risk. Market risk does not produce a permanent loss of capital, and higher yields result in increasing returns over time.

Not all lifecycle funds are created equal

There are important features which distinguish the different lifecycle offerings and they can have a significant impact on member outcomes. Rating agencies will need to adapt their processes versus normal balanced funds.

Click 'Next' to go to hundreds of archived articles on investing.

Register for our free weekly newsletter

New registrations receive free copies of our special investment ebooks.