This issue of Wealth Adviser includes:
- The 100-Year Plan: Rethinking retirement finance for increased longevity. Increasing longevity means many retirees face the possibility of living well into their 90s or even beyond 100. This requires a rethink of retirement planning. It’s important to get the balance right to not run out of money, but also not sacrifice too much lifestyle to have excessive funds left at the end.
- The Iron Law of building wealth. “The biggest mistake that I see investors make is constantly switching strategies. One minute, they’ll chase the speculative pharmaceutical stock that they’re sure will soon get FDA approval for a certain drug, or the mining company that’s about to make the next big find, or the next bit of market momentum.”
- The 9 most important things Dr Shane Oliver has learned about investing. My nine most important lessons from investing over the past 40 years are: there is always a cycle; the crowd gets it wrong at extremes; what you pay for an investment matters a lot; it’s hard to get markets right; investment markets don’t learn; compound interest is like magic when applied to investments; it pays to be optimistic; keep it simple; & you need to know yourself to be a good investor.
Q & A
- My friend’s financial adviser recommended he invest in managed funds, whereas I’m invested in Exchange Traded Funds (ETFs). What are the key differences?
- I was sent an email saying that I should update my death benefit nominations for my superannuation and insurances. What is the difference between a ‘binding death benefit nomination’ and a ‘non-binding nomination’?
- What is ‘ethical’ investing and what are the costs associated with these types of investments?
If you would care to share your experience with me, please comment below!