The UPS and DOWNS of INVESTING
Market volatility has been front page news recently. The Australian stockmarket has been subject to a range of global pressures such as the fear of recession in the US and the sub-prime mortgage ‘meltdown’. These pressures have caused our market to fluctuate quite wildly and it is now well below the peak it reached late last year. If you’re concerned about the impact this is having on your own personal investments, you’re not alone.
So what’s the best course of action in times like these? Check our lead article which might be summarised as follows: allowing a short-term view (however frustrating it is to watch) to influence your long-term lifestyle goals and investment strategy could be a costly mistake.
Before you make any major changes to your investment strategy, it’s important to remember that this isn’t the first time markets have experienced this sort of activity. In 1991 we experienced the recession ‘we had to have’. In 2000 we experienced the ‘Tech Wreck’. In 2001 the attack on the World Trade Centre made a significant impact on our markets. And in 2003 the US invasion into Iraq caused a dip. Then in each and every example quoted above, the market recovered and went on to new, all-time highs.
Interestingly, towards the end of the last grim investment cycle in 2003, Shane Oliver wrote an article (attached as our second article), entitled Rational Man vs Psychological Realities or How I learned to Stop Worrying. Although we might be somewhere between Panic and Capitulation - it might also be a great time to be regularly investing and buying whilst prices are lower.
The third article focuses on boosting your super and therefore your retirement lifestyle. If you are 50+ and haven't reviewed your strategies with our award winning technical specialists in this area, then you are probably not maximising your nest egg and you are probably paying too much tax!
With rising interest rates, many clients are telling us that loan interest costs are front of mind. Since 2004, the team at Bentham have developed some of the most comprehensive and highly effective debt management strategies available. One client example has seen accelerated home mortgage reductions of over $100,000 in 3 years whilst simultaneously building their wealth creation portfolio. Check the final article and call us for the right advice.
The Team @ Bentham FINANCIAL GROUP
Advice | Superannuation | Retirement | Investment | Insurance
2007 National Winner | Financial Planning Association Award for Pre-Retirement Planning
When markets are experiencing wild swings, having a plan is crucial.
By finance journalist Melissa Wilkinson
Living off existing assets and boosting super at the same time |
If you are considering putting money into super here is an example of how the right choice of contribution type can maximise your benefits and take advantage of tax concessions.
Rational Man vs Psychological Realities
An interesting article from 2003 which almost directly corresponds to our current investment environment. If nothing else - please check Page 3 of the article...
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