What cost $1 in 1988 now costs $2.29 adjusted for inflation. We should make return calculations in real terms or we are deluding ourselves about investment performance over longer terms.
Tag Archives | financial literacy
Last week, we asked ‘Are Cuffelinks readers smarter than average?’. Turns out the answer is a firm YES, but we also learned how often financial matters can be open to interpretation.
The 2018 HILDA Survey included five questions aimed at measuring financial literacy. We have replicated these in Cuffelinks’ own quiz to compare our readership’s results with that of the rest of Australia.
Telling investment stories in the form of a fable or parable is a great way to overcome the reluctance of many inexperienced investors to think about saving.
Improving financial literacy and capitalising on the changing investment trends of SMSF trustees, are big opportunities for financial advisers, according to two recent surveys.
The modern investor has access to many products but the level of financial literacy struggles to keep pace leading to confusion and conflicted goals. This study shows the types of conversations investors should have with advisers.
People with low levels of financial literacy have a greater likelihood of making financial mistakes, including being misled or defrauded. The financial services industry should work to address this.
Every investor has questions they are pondering at any point in time. In 2015, finding value in the market, explaining how to think about risk and the design of solutions for the post-retirement phase are three major issues.
Australia’s super industry has confused or complicated the primary purpose of providing for retirement by fostering these five retirement myths. While some are based on truths, others are not worth believing.
Bernstein’s 2014 booklet is a simple recipe for young people starting on an investment journey. It aims to help establish the savings discipline needed to set the millennial generation up for a comfortable retirement.
We may already know how risk averse we are when it comes to investing, but how much of this is affected by ambiguity aversion. A better understanding of financial products could improve the investment choices we make.
Noel Whittaker kindly did a great write up of Cuffelinks in his own newsletter, which led to a surge in new registrations. He said, “The people behind Cuffelinks have high integrity, top skills, a great reputation, and share my passion for financial education. I know you will gain a lot from becoming a subscriber.” Noel’s excellent free newsletter has been published for 15 years, and you can subscribe on noelwhittaker.com.au, where he also has several useful calculators.
The search for yield has driven retail investors into billions of dollars of hybrids that could not be sold to wholesale investors at these levels. Is the full picture being told to the retail market?
* The Uni of NSW is conducting a 60 minute cognitive functioning and financial literacy study, aimed at SMSF trustees. Here are the details.
Financial literacy levels in Australia and around the world are worryingly low, which impacts the way financial advice is received and understood. Is the message getting through, or should advisers give clients this simple test?
Australia has an enormous opportunity to build a world-class decumulation system that gives individuals security and flexibility in retirement, but it’s different from the accumulation phase.