The critical difference between desired and required returns

Published: November 22, 2017

We probably all remember during those long difficult car trips as children repeatedly saying such irritating things to our parents as: "When do we get there?". Perhaps adding to reinforce the point, "I knew we would never get there". And then pleading whenever a fast-food joint appears on the horizon: "I NEED an ice cream". Fast forward […]

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Realism-v-reality – working part-time as retirees

Published: November 15, 2017

Are you planning to boost your retirement income by doing some part-time work once you eventually retire? Perhaps you have included the expectation of some paid work in your calculations about how much you need to finance your retirement. If so, this leads to another question: How realistic is that expectation? A Vanguard research paper, Retirement […]

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‘If only I had a second chance’

Published: November 15, 2017

No matter our age, most of us would probably look back on some aspects of our lives and say to ourselves: "If only I could do that again; if only I had a second chance".   This, of course, tends to occur quite frequently in regards to our investing and saving. Often, we regret not […]

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THE AGE OF THE SUPERCOMPANIES

Published: November 2, 2017

Mike Gallagher, CFA, CAIA, Head of Distribution, Intermede Investment Partners American corporations are enjoying a golden age of profitability. Intermede examines the sources of their current relative dominance and the potential risks faced by some of the technology businesses that currently sit at the top of the pile. A March 2016 article in The Economist argued […]

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Behavioural finance: Why is it so relevant in the field of investing?

Published: October 31, 2017

Tom Stevenson, Investment Director I was delighted that Richard Thaler was awarded the 2017 Nobel Economics Prize. Thanks to the work of Thaler and other giants in the field of behavioural economics like Daniel Kahneman and Amos Tversky, it is increasingly accepted that ‘homo economicus’, the rational agent always seeking economic advantage, does not exist.   […]

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Technology: An adversary in the fight for 2% inflation

Published: October 30, 2017

It's been a generation since inflation last ravaged Australia, with costs for ordinary consumer goods rising on a seemingly daily basis. Indeed, in the wake of the global financial crisis, inflation in many countries has been lower than policymakers would like. Low inflation, it turns out, can be a problem too. Over time, declining or […]

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How to develop a "dynamic" approach to retiree spending

Published: October 27, 2017

As Smart Investing recently discussed, the combination of historically-low yields, expected muted investment returns and growing life expectancies are making it particularly challenging for retirees to calculate how much to draw down from their retirement savings. A critical issue here is how much retirees can withdraw from their portfolios each year to finance their current spending and […]

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Think ahead about smart retiree spending and investing

Published: October 27, 2017

A common personal finance trap is to concentrate on saving and investing to finance our eventual retirement without thinking enough in advance about how to invest and spend that money in retirement. Given that we have so much going on in our lives long before retirement –such as our careers, dependent children, home mortgages and […]

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How to explain our irrational behaviours

Published: October 27, 2017

Nobel prize-winning economists do not usually have a lot to say to everyday investors. This year is different. Professor Richard Thaler won the Nobel memorial prize for economics for his work in behavioural economics. In short, he won for the understanding he has brought to the way 'real' people think and react when making financial […]

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The Automatic Opportunity

Published: October 17, 2017

Simon Blanchflower, Altrinsic Global Advisors The world is changing fast. The threat of disruption is real and growing with the potential for catastrophic outcomes for companies and industries across the globe. Once formidable barriers to entry are breaking down under the onslaught of new, fast-moving competitors empowered by the changing dynamics of the mobile internet […]

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