Economic growth is the central assumption underlying our political and economic systems. It is the mechanism relied upon for improving living standards, reducing poverty to now solving the problems of over indebted individuals, businesses and nations.
These are the things you consider in your 60s. I am 60ish and still working full time. Parents worry about the financial safety of their family. As the mother of Adam and Meg, both in their 30s, I have had first-hand experience at attempting to give my Meg some financial tips. Meg and her husband Jason pool their salaries, Jason is the details person so he does his research to make sure they have the best mortgage package.
I head out to Cairns early in the morning for the 2015 AFA Conference. It only seems like yesterday I was packing to attend last year’s event, certainly not considering anything other than how fortunate I was to be considered as a finalist for the Adviser of the Year Award.
The stories of people moving into a retirement community and suffering buyer regret years later when they realise what they get back have been well told. The ABC’s 7.30 programme highlighted the issue again recently with a story about children who had seemingly done the right thing and read the agreement yet were shocked at the actual cost when their mother’s unit was sold six years later and the village operator received circa $76,000.
Such stories also contribute to the other type of buyer regret – people who wish they had made the move sooner.
My friend Susan (not her real name) was the perfect candidate and recently took out a reverse mortgage. Her house was almost paid off, but over her working life, she had not accumulated much additional savings.
There are three investment rules by which to live in the current volatile environment – the same three rules we think by which investors should always live.
A lot of people seem to view high yielding stocks as the silver bullet for retirement plans. I’m less sure. In many circumstances the focus on income can be flawed, risky and difficult to implement. Return and risk are key to any investment decision.
Modern Greece faces its own dilemma; should it too sail within reach of Scylla, the 28-headed monster that lives in Brussels to avoid Charybdis, the ‘sucking whirlpool’ that is the return of the drachma?
The AFA crew and 2014 AFA award-winners are back from our Roadshow travels through every state – and what an amazing two weeks we have had with our advice community!
Australia hasn’t had a recession for almost a quarter of a century, so are they a thing of the past?