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.
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
How can I tell if my super fund provider is in financial difficulty?
I recently reviewed Media Super’s Annual Report after reading a media article that reported them purchasing a 429-year-old violin as an investment. I thought this was an odd investment for a regulated super fund. Was this a responsible decision given the opaque market of collectables and the high transactional costs associated with such investments? And, how did this get past APRA? It triggered me to investigate Media Super’s investment policy.
Is it better to retire on a $350k super fund, or a $900k super fund balance?
When it comes to retirement most people believe more is best, but is this always the case? Have the Centrelink changes that came into effect last year distorted reality; has the $350k super fund become the new $900k – without all the extra effort of squirrelling away so much for retirement?
AJ Radio – Episode 12
In AJ Radio’s 12th Episode we discuss the new frontier of cryptocurrencies such as Bitcoin and Ethereum. What are they; what are the risks; and are there any potential opportunities with these new currencies?
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.
AJ Radio – Episode 1
In AJ Radio’s first episode, we explore the area of social media and how this technology is being used as a leading indicator to identify future investment trends. We then discuss artificial intelligence and how big data technology is being used to influence investment decisions. Finally, we explain what “fin tech” is all about, and how the finance domain is being disrupted by technology and innovation.
What is the impact of negative interest rates?
Run the Red; Run the Risk – How negative interest rates turn economies on their heads.
If you have a home loan or a term deposit, then it is likely that you also have some level of curiosity around what is going on with interest rates.
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.
There is a lot of talk at the moment about the affordability of property and a lot of discussion about the impact of overseas buyers on the local market.
Who knows you best; your partner, your friends - or Facebook?
With Facebook users reaching around 1.44 billion globally and users posting around 250 million pieces of information per hour on the site, the expansion of information is mind boggling.
Are You Ready for The Next Hot IPO...?
There is often a lot of noise in the markets around the next hot IPO (initial public offering), but is this method of investment really the deal of a lifetime?
Is your occupation on a hit list for robotisation?
A couple of weeks ago, I was walking down Greville Street, Melbourne and a man silently breezed past me on a segway. I felt like I had been plunged into the movie set of Back to the Future.
The Super catch up… Are you chasing a $541K shortfall?
How do you catch up if you haven’t contributed to your superannuation for a while?
Perhaps you’re self-employed, have taken time off to start a family, or are just enjoying some time off work to travel the world. Whatever the reason, it’s likely that as a result, your superannuation might be a little light on. The question is does it matter if you miss a few years of contributing?
What to expect from bone jarring volatility in the sharemarket….
A very good friend of mine a few years back undertook one of Australia’s most gruelling 4WD adventures know as the “Canning Stock Route”.
Should you pay less for an engagement ring for a long marriage?
With the average wedding in Australia these days costing between $36,700 and $48,296, I recently came across an interesting study. Unfortunately, the findings might horrify some brides!
What is more important- land content or the square metres when it comes to property?
I was recently staying in Brisbane visiting clients recently and the hotel which I was staying at had sensational views across the river and out to the mountains. However, as I was staring out to the vista, I started to thinking about the below questions….
With low oil prices are we putting high octane fuel into the economy?
The past few months we have been witnessing the steady drop in oil price. The below chart shows the oil price going from over $105 a barrel to below $50.
Is it always the Kodak moment for old industries up against new ideas?
Sometimes when you are looking to put some high octane into your investment portfolio, we often look to emerging industries, sectors or ideas. Over the decades segments of the market change from time to time, but today,
Are you trying to chase last years returns?
One of the hardest urges to resist when it comes to investing is to not get caught up with the herd or the “group think of a market place”. This happens in all investment asset classes, and to some degree, why we see bubbles occur in a range of asset classes. The main cause of the problem is that people start to extrapolate the returns out into the future as if this is the new norm.
Would you sell part of your soul to fund a purchase?
Most people don’t realise that in a lot of cases the best investment they own is themselves.
The main reason is that a person has the ability to generate income every year as long as you remain either self employed or employed. Despite market fluctuations, for some people this income source is pretty reliable.