Many people face two financial planning challenges. Firstly, their projected super balance may not be enough to fund their desired living expenses in retirement. Secondly, they would like to enjoy the flexibility of being able to reduce working hours (or even retire in full) in their 50’s. Often, the solution to these two financial …
Many people can be very focused on repaying their home loan in full before they begin investing. They are so averse to debt that they cannot envisage doing anything else until their home loan is gone. However, often this isn’t the best approach to take. At some point, investing is more important that debt reduction. …
Warren Buffett’s long time business partner, Charlie Munger, who incidentally, will turn 100 in January next year, famously said, “The big money is not in the buying or the selling, but in the waiting.” The more investing experience I accumulate, the greater the appreciation I have of how true this statement is. It is interesting …
Engineers know that for a building to remain structurally sound for many decades it must have strong foundations. It doesn’t matter how good a building is above the ground, if the foundations are substandard, the building won’t last. The same is true for building wealth. There are several foundational matters that investors must optimise before …
Now that home loan interest rates have risen by 4% over the past 13 months, is it still worth investing your surplus cash flow, or should all cash flow go towards repaying your home loan? Many of my clients invest some surplus cash flow in the share market each month. This has been very easy …
The ‘great Australian dream’ has always been to own your own home, debt free. It gives you financial security, and over the past three to four decades, homeowners have enjoyed rising prices which has helped them build wealth. But is it always a good idea to own your home, or is renting better? Put differently, …
If you are considering borrowing to invest in a quality property, I would like to remind you of three important considerations. Firstly, it is my thesis that property investors must be more selective about which property/s to invest in. In that past, investors have benefited from a rising tide (driven substantially by rising borrowing capacities), …
Inflation reduced from 7.8% in the December quarter to 7.0% in the March quarter, which was good news, of course. Many economists believe that inflation (CPI) will continue to decline over the coming months. However, history tells us that when inflation has exceeded 8% (like it did in the US last year), it has taken …
Some people plan to give money to beneficiaries (typically children and/or charities i.e., early inheritance) before they pass away, especially if they consider they have more than enough money i.e., surplus wealth. Often, their thesis is that their kids can make good use of the money now, whilst they are younger, rather than waiting another …
I was listening to Morgan Housel’s new podcast recently (which I highly recommend by the way), and he said something along the lines of; once you define your investment philosophy, you won’t be distracted by any noise that doesn’t align with it. It really resonated with me. Success with investing is more about avoiding mistakes …
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