Diversification is the balancing force

Market volatility naturally makes investors nervous, but it is good to keep in mind that volatility traditionally tends to be a short-term concern. History tells us that markets have always recovered in the past and the size of the upturns in the market has always outweighed the size of the downturns. Australian shares recorded their worst year on record in 2008 when the All Ordinaries Index fe...
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Link your insurance and save

Research shows that around one-fifth of Australians aged between 21 and 64 will suffer from a medical event, such as an accident, injury or terminal illness that will leave them unable to work. Despite this alarming statistic, it is estimated that 95% of Australian families have inadequate levels of personal insurance cover in place, with many relying solely on the default cover held within sup...
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Financial planning – more than just advice

Financial planners are often the first port of call for people seeking advice on investing a lump sum of money. But that is just the tip of the iceberg. A professional financial adviser has the knowledge and skills to help you achieve your goals and objectives by tailoring strategies to address your specific needs. We will provide you with assistance and guidance on: Budgeting – reviewing...
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Working around low interest rates

It seems like the sun never sets on a day without some mention of what the Governor of the Reserve Bank of Australia will do to interest rates at his next Board meeting. The reasoning behind dropping rates is to give mortgage holders and businesses more disposable income to spend, thereby stimulating the economy. Lower rates also encourage people to borrow to invest into property or businesses, po...
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Get started with an apprenticeship loan

Australia’s youth is choosing university study over apprenticeships, which has led to a national skills shortage across a range of key trades. This is bad news for the economy, but great news for tradies. The combination of skills shortages and government incentives present substantial opportunities for job seekers to find employment in industries that can offer long-term and rewarding careers. ...
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How to make friends with your credit card

The pictures are enticing: ocean blues and hibiscus pinks; white beaches and nightclubs. For twenty-somethings, tropical holidays are rites of passage few can resist; fewer still can afford them – even if we think we can. The Thailand package was only $500, but Simon, having just paid his car rego was broke so he decided to pay for it using his credit card. However, after adding airfares and ...
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4 ways to manage uni and money

Going to university is a time of growth and independence, although the associated costs can make it an expensive proposition. Yet as Ben found, there are ways to minimise the cost and kick-start your financial future. The day Ben was accepted into law school, he was first excited, then nervous; his life was changing forever! Ben asked his parents whether they had a hidden cache of gold burie...
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Sequencing risk: the order of things

As financial advisers, we talk a lot about risk, so what is sequencing risk? Let’s begin with an example… Jennifer and Sue each contribute $20,000 per year to their superannuation funds for 10 years. They both earn an average return of 5% per annum, after tax and fees, and from Years Two to Nine they earn identical returns each year. The only difference is that Jennifer’s portfolio return...
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