The main focus in retirement planning should be on the entire return from a portfolio, not just the income generated, and this might help some people in managing changes due to Labor’s franking credit proposal.
Tag Archives | investment goals
The recent fall in stock market prices worries many investors, but it is a normal part of exposure to shares. Nervous Investors need to understand how they think, set a plan and stick to it.
The financial concerns of those in or close to retirement are focussed on health and housing. Lower interest rates, rising healthcare costs and lifespan uncertainty legitimately compound those concerns.
Preferences revealed by actual investing behaviour are often different to preferences stated in surveys. Financial planners and super funds should use newer analyses that helps understand the discrepancies.
A retirement financial plan must consider longevity, health and liabilities, making it far more complicated than the simpler investment strategy in the accumulation phase.
In contrast to the way institutions make investment decisions, family offices and high net worth investors display high levels of engagement and often have their unique non-financial objectives to satisfy.
The holiday season provides a rare opportunity to ponder the ‘big questions’ in life. For this investment professional, it’s the chance to think about the one ‘big question’ that has fascinated and puzzled him for 30 years.
Australian index-based equity portfolios are often concentrated by company and sector. Some other goal-based strategies might be a better fit for your investments but clients and advisers will need to drive this change.
There are more than a few similarities between running and investing. Success in either discipline is about having specific goals and strategies, avoiding the big risks, and not diverting from your plan.
A good financial plan should have the needs and goals of retirement clearly defined, which then allows an appropriate portfolio mix to be established. The risk becomes the failure to achieve those goals.
Every super fund member fears a downturn, but with an expected working life of 45 years and retirement of 30 years, we need to look beyond the short -term. A look at stock market cycles helps with the long-term view.
We cannot afford to ‘make things up as we go along’. We need a plan that addresses short, medium and long term goals, and we need to take action to address those goals now, not later.