AJ Financial Planning Blog
We like the quote by R. Bennett when he summed up the following "Top 15 things money can't buy; time, happiness, inner peace, integrity, love, character,... respect, morals, trust, patience, common sense, dignity."
Our blog shares our latest ideas, critical thinking, thought-provoking insights, innovative exploration of the markets, economies, investments and areas in the financial markets that require change.
The economic cycle of the herd
Alchemy has been around for centuries. It is based on the notion of being able to convert base metals into gold. For centuries, man has
Should the bank guarantee be weaponised to promote competition?
In 2008, during the height of the GFC, people were worried whether their money was safe in the banks. As a result, the Australian Government
Australian Super’s Elephant Gun Problem
Back in 1987, Warren Buffet made the following statement in a letter to Berkshire Hathaway shareholders: ‘Our basic principle is that if you want to shoot rare, fast-moving elephants, you should always carry a loaded gun’
When does a brand lose authenticity?
For some time I have been thinking about the following equation and asking myself, does it hold true? Increase business size = lost authenticity
A new way to beat Centrelink’s Age Pension assets test limit?
Centrelink’s changes to the Age Pension assets test limit in January 2017 cut off access to the Age Pension for many retirees, when the maximum value of assets owned to obtain the age pension was reduced.
How to beat Labor’s proposed changes to the franking policy and stick it to the man
The media has been a flurry recently about Labor’s proposed changes to franking credits. There has been public outrage over this, and the sad reality is that this policy will have little impact on the uber-rich; those most affected will likely be the same group of people who lost their age pension a few years back when the asset test limit was changed. You can start to understand why retirees are fed up.
Bestsellers on retirement or investment planning: fiction or non-fiction?
A few years back, I attended an executive course run by University of Nebraska, Omaha. It took place just prior to the annual general meeting of Berkshire Hathaway, also in Omaha Nebraska. The focus of the course was to explore a range of fundamental valuation techniques and hear from key executives within Berkshire Hathaway.
Does your retirement super need to be ‘Zengosaidan’?
I often like to read ‘peculiar’ books that give me some insights into different ways of thinking. I recently came across a book review in The Monocle Minute. It inspired me to buy the book:
AJ Radio – Episode 20
In this 20th Episode of AJ Radio we challenge some paradigms of investing and retirement. As the financial world is no always logical, we raise some interesting questions when thinking of the amount of funding for your retirement and if higher returns for investments are better.
Could bitcoin actually get your kids interested in investing?
I often hear parents lament that their kids have no interest in investing, and they ask me how might they entice them to be more engaged. With all the distractions of social media, computer games and other interests competing for their time and attention, I can see why kids might not be jumping up and down at the thought of developing an investment portfolio.
Should investors participate in class actions?
A flurry of class actions over the past few years raises the question: is this area of law becoming the new feeding ground for ambulance-chasing lawyers?
The marketing and PR is slick: ‘If we don’t win your case, you don’t have to pay a cent’; ‘Just register for the class action and you might receive some money; if it fails, you don’t have to pay anything’.
Are industry super funds headed for an asset allocation disaster?
Superannuation funds within the retail and industry super fund market usually offer ‘balanced’ or ‘growth’-based investment options. But what does this really mean; and aren’t these funds all the same?
On 31 May 2017, Vanguard’s Balanced Index Fund reported an allocation to growth-based assets of 49.9%.
Why Solar is Not Dead Under Trump
Thinking of investing in renewables? Does it make sense to invest in this sector, and what are the advantages?
Who gets a higher return- a trader or an investor?
I was recently watching a Disney movie with my two young boys, who are going through a basketball phase. The film featured real-life basketball star Kevin Durant, who presently plays for Oklahoma City Thunder. Incidentally, he earns a nice income of around USD 17.83 million a year… Anyway, in the movie his work ethic catchphrase is: “Hard work beats talent when talent fails to work hard”.
Are you prepared for 17 years of retirement?
In 1934 there were 3 stages of a lifecycle – a child, an adult, and simply being old! At that time, the average life expectancy was only 63 years old.
Navigating retirement funding: Is superannuation such a great idea?
Superannuation and retirement have always gone hand in hand. Yet recent budget announcements around taxation, contribution caps and other proposed changes have caused a stir and understandably, some Australians may be reconsidering the merits of superannuation.
Which is a better investment for your child’s future; private schooling, or an investment property?
Over the years, I have often heard people ask ‘Should I send my kids to private school, or save the money and buy them a property instead?’
Australian indexes: a safe bet for retirees?
Every day when we turn on the TV, radio, or read the newspaper, we are told whether the share market in Australia has increased or decreased. The Australian stock market is often referred to as the ASX 200, which is the 200 largest companies listed on the stock exchange in Australia.
Is China’s economy really dead; or is it just suffering a bad hangover?
Over the Christmas break, my family and I visited the island of Hokkaido in Japan and we skied at a lovely little resort called Tomamu. One evening, we were fortunate enough to visit a village made entirely from ice—it was truly a remarkable sight.
Does outperformance = A company driven to improve people’s lives?
A few weeks back, I read a blog article from the Ritz Carlton Leadership Center: “Companies with ideals of improving people’s lives at the center of all they do outperform others by 400%”. This claim comes on the back of a 10-year study conducted by brand consultant Millward Brown and Jim Stengel.