From Skynet to ChatGPT: AI and Its Investment Implications
If you were to poll strangers on what comes to mind when they hear the term AI (artificial intelligence), I suspect the two most likely answers would be Skynet or ChatGPT. The Read more…
Author Archives: Smart Retirement
Midyear Review: Staying Focused as Markets Shift
Key Takeaways – Stocks rebounded from their worst year since 2008, returning to a bull market in the US. – Inflation fell to half of last year’s peak, and the Read more…
Will These Super Changes Affect You?
As our superannuation balances grow larger, it makes more sense than ever to keep track of the many rule changes that have recently happened or are coming up soon. Australians Read more…
Sowing the Seeds for a Happy Retirement
The thought of retirement is an enticing one for many of us. Imagine throwing off the shackles of the workforce and being able to do whatever you want, whenever you Read more…
Who Needs a Testamentary Trust?
The rising cost of living is grabbing all the attention right now as people struggle to pay increasing prices. But in the meantime, our collective wealth has been growing steadily Read more…
Set Yourself up for Success in the New Financial Year
The start of a new financial year is the perfect time to get your financial affairs in order. Whether it’s tidying up your paperwork, assessing your portfolio or dealing with Read more…
Winter 2023
As winter sets in and the end of the financial year approaches, it’s a good chance to spend some time tidying up and reviewing your finances. Many factors have affected Read more…
Will Inflation Hurt Stock Returns? Not Necessarily.
How Targeting Size, Value and Profitability Can Improve Retirement Outcomes
Key Takeaways – Broadly diversified equity portfolios with a moderate emphasis on size, value and profitability can help increase retirement assets. – This investment approach can also sustain retirement income Read more…
The Stock Market vs. Stocks in the Market
The collapse of First Republic Bank is a harsh reminder that any stock can go to zero, no matter how established a company is, or how loyal and wealthy its Read more…
Federal Budget 2023-24 Analysis
A Surplus For Now But Stormy Seas Ahead Treasurer Jim Chalmers bills his 2023 Federal Budget as an economic strategy to help ease cost-of-living pressures. To that end, he has Read more…
When Headlines Worry You, Bank on Investment Principles
On Friday, March 10, regulators took control of Silicon Valley Bank as a run on the bank unfolded. Two days later, regulators took control of a second lender, Signature Bank. Read more…
What’s Your True Net Worth?
Many apps today claim to instantly calculate your net worth by adding up your banking and investment accounts and then deducting what you owe on your credit cards and mortgage. Read more…
Hoop Dreaming Is Fun in March. Investing Realities Apply Across a Lifetime.
Every year at this time, the NCAA men’s basketball tournament thrills fans and creates so much interest that it’s estimated one in four Americans filled out a bracket (a tree Read more…
How Do Interest Rates Affect Your Investments?
Interest rates are an important financial lever for world economies. They affect the cost of borrowing and the return on savings, and it makes them an integral part of the Read more…
Trust your Gut to Boost your Health
Gut health has become one of the hottest health topics in recent years as we have started to learn about the complex connection between gut health and overall health. So Read more…
Star Ratings for Aged Care Help Make Family Choices Easier
Moving into aged care can be a challenging time, both for those making the move and families supporting their loved ones. It’s understandable that everyone wants to find the most Read more…
Flexing your Retirement Plans
The concept of retirement is changing, with fewer people working towards a final retirement date and then clocking off for good. Instead, those who have the flexibility to choose are Read more…
Autumn 2023 Snapshot
With Autumn underway, the changing season is a reminder to take stock and prepare for what’s ahead as the financial year heads towards its final quarter and the May Federal Read more…
Two Steps Forward, One Step Back for Investors
Consider everything investors have been through in recent years: a global pandemic, rapid inflation, war in Europe and volatile stock and bond markets. It’s reasonable to feel uneasy in the Read more…
People Have Memories. Markets Don’t.
One of the best things about markets is that they don’t have memories. They don’t remember what happened last week or last year. Like a goldfish, they don’t even remember Read more…
Volunteering: Find Your Purpose and Give Back to Your Community
Retirement is a time of great change and transition. You may find yourself looking for new ways to engage with your community and find a sense of purpose. Volunteering can Read more…
8 Retirement Mistakes and How to Avoid Them
Retirement is a phase of life most of us look forward to. It’s a chance to pursue other interests, travel and maybe do some part-time work or volunteering. Thanks to Read more…
Ins and Outs of Emerging Markets Investing
Recent history reminds us that emerging markets can be volatile and can lag developed markets. However, emerging markets represent a meaningful piece of the global investment opportunity set. A disciplined Read more…
This Has Been a Test: Developing a Financial Plan You Can Stick With
Think back to December 2019. The economy was humming. Unemployment, interest rates and inflation were at historically low levels. But then what happened? – A global pandemic hit. By the Read more…
Market Review 2022: After a Down Year, Looking to the Past as a Guide
Key Takeaways – Stocks had their worst year since 2008, and bond prices also fell as inflation reached a four-decade high. – Value stocks served as bright spot, outperforming growth Read more…
2022 Year in Review
The year began on an optimistic note, as we finally began to emerge from Covid restrictions. Then Russia threw a curve ball that reverberated around the world and suddenly people Read more…
The Year that Wasn’t
As an eventful year in markets nears its close, analysts are being asked about their expectations for 2023. The media uses these surveys to generate eye-catching headlines, but rarely does Read more…
Celebrating the Festive Season, the Aussie Way
If you’ve ever hosted a visitor from overseas during the festive season, you may have seen them a little bemused by the way we celebrate. It’s quite understandable, as we Read more…
Buying Shares for Kids: a Gift that Keeps on Giving
Many parents and grandparents worry about how to help the children in their lives achieve financial independence. But the value of long-term investment can seem like a dry and complicated Read more…
Sustainable Investing on the Rise
Sustainable investing isn’t new and is becoming more mainstream. From climate change to gender diversity, more people are aligning their money with their values. In 2021, Australia’s sustainable investment market Read more…
Summer Summary 2022
It’s December already! Summer is here and holidays are just around the corner. We take this opportunity to wish you and your family a happy festive season. The big story Read more…
Go Global for Diversification That Travels Well
Australian investors may believe they know Australia best. Accordingly, they are liable to put the bulk of their investments in stocks and bonds of Australia-based companies and in Australian government Read more…
Information Hygiene
The pandemic showed the power of a previously unknown virus to spread through the global population, threatening health and creating economic mayhem. But few people appreciate the power of bad Read more…
The 60/40 Portfolio: Down but Not Out
This has been a challenging year for investors. On top of the equity bear market, the steep losses in bonds(*1) have been especially surprising, leading some investors to question whether the Read more…
Rate Expectations
If you consume enough financial media, you’ll notice that much time and space is spent wondering what central banks will do next with benchmark interest rates. But while this constant Read more…
Federal Budget Analysis 2022 – 2023
Budget October 2022: sign of the times In his first Budget, Treasurer Jim Chalmers emphasised the three R’s – Responsible budget repair and Restrained spending, Right for the times. For Read more…
Bad Medicine: The Problem with Poison Pills
Key Takeaways – Market volatility can lead companies to adopt poison pills in an effort to block hostile takeover attempts. – The market for corporate control, including hostile takeovers, can Read more…
The Cost of Trying to Time the Market
Missing only a brief period of strong returns can drastically impact overall performance. S&P/ASX 300 Index (Total Return)(*1) The impact of being out of the market for a short Read more…
How to Invest Better and Live Better
By David Booth Executive Chairman and Founder of Dimensional. It can be challenging to start a conversation about investing. That’s why I encourage having a conversation before the investing conversation Read more…
A Guide to Aged Care at Home
As we get older, most of us want to remain independent and in our own home for as long as possible. But this can be challenging without some help with Read more…
Mortgage Vs Super
“Should I put my money into my mortgage or my super?” With interest rates on the rise and investment returns increasingly volatile, Australians with cash to spare may be wondering Read more…
Go on… Take a Break!
One of the things many of us have been missing over the past few years is holidays… Now that the world is opening up again for travel and destinations that Read more…
How is my Insurance Taxed?
With the cost of living on the rise, it’s more important than ever to have a financial safety net that protects you and your family in case the unexpected happens. Read more…
How Much Super Do You Need to Retire?
Working out how much you need to save for retirement is a question that keeps many pre-retirees awake at night. Recent market volatility and fluctuating superannuation balances have only added Read more…
What Drives Investment Returns? Start with Ingenuity
A recent news item reported that Frederick Smith intended to step down as Chairman and Chief Executive Officer of FedEx Corp., the largest air freight firm in the world. As Read more…
Liquid Alternatives: Panacea, or Just a Pain?
Key Takeaways – Liquid-alt investments claim they deliver higher potential returns and lower correlations to stocks and bonds – but have fallen short. – From June 2006 to June 2022, Read more…
World Cup of Investing
While the All Blacks are one of the world’s most successful sports teams, Kiwi rugby fans have learnt not to expect them to win the World Cup at every tournament. Read more…
Back to the Futures: A Look at US Federal Funds Futures and Bond Performance
Key Takeaways – Federal funds futures reflect market expectations about future changes in the federal funds rate. – Using data starting in 1989, we find no reliable relation between expected Read more…
Making Cash Flows Count
Key Takeaways – Dimensional makes buy and sell decisions every day based on numerous inputs. – This process allows us to use available proceeds on a targeted subset of Read more…
The Rewarding Distribution of Australian Stock Market Returns
Annual stock market returns are unpredictable, but “up” years have occurred much more frequently than “down” years in Australia. That may be reassuring to investors, especially if they find market Read more…
The Difference Between a Forecast, a Wish and a Worry
By David Booth, Executive Chairman and Founder of Dimensional. When I was growing up, our local newspaper, the Kansas City Star, was full of news and had one page for Read more…
Does [fill in the blank] Belong in My Portfolio?
Key Takeaways – A general framework based on potential benefits and drawbacks can be used to assess the merits of a new investment opportunity. – A sensible approach is to Read more…
Riding Out the Storm: Seven Lessons
Two years since the pandemic shock helped drive global share markets down 30-40% in the space of weeks, volatility is back. This time, however, it’s war, inflation, and recession fears Read more…
Beware the Hidden Costs of Indexing
Key Takeaways – A Dimensional study shows that there are potential hidden costs associated with rigidly following an index. – The stocks that make up index funds can see increased Read more…
Robert Merton on Australia’s Retirement System
Nobel laureate Professor Robert Merton is one of the world’s leading thinkers on retirement systems. Professor Merton has laid out a comprehensive proposal for how Australia’s superannuation industry might manage Read more…
A Super Window of Opportunity
New rules coming into force on July 1 will create opportunities for older Australians to boost their retirement savings and younger Australians to build a home deposit, all within the Read more…
Market Returns through a Century of Recessions
What does a century of economic cycles teach investors about investing? The following graphs examine how stocks have behaved during US economic downturns. Markets around the world have often rewarded Read more…
Light at the End of the Inflation Tunnel?
At some point over the past year, the financial media’s inflation coverage transitioned from, “Will this high inflation persist?” to, “Here’s how to cope with inflation that’s here to stay!” Read more…
History Shows That Stock Gains Can Add Up after Big Declines
Sudden market downturns can be unsettling. But historically, US equity returns following sharp declines have, on average, been positive. A broad market index tracking data since 1926 in the US shows Read more…
The Randomness of Global Stock Returns
Investment opportunities exist all around the globe – and it’s hard to know where next year’s best returns will appear. A globally diversified portfolio can help capture a broad range Read more…
Preparing for the Next Chapter – Retirement
Retirement means starting a new chapter of your life, one that gives you the freedom to create your own story. You decide exactly how you want to spend your time. Read more…
Worried About Stocks? Why Long-Term Investing Is Crucial
Article by David Booth, Dimensional Executive Chairman and Founder. We are living in a time of extreme uncertainty and the anxiety that comes along with it. Against the backdrop of Read more…
A Super End to the Financial Year
As the end of the financial year approaches, now is a good time to check your super and see what you could do to boost your retirement nest egg. What’s Read more…
Tips to Navigate Market Volatility
The best thing investors can do when markets are volatile is to stay invested. Of course, that’s often easier said than done, especially when market commentators point to a market Read more…
How to Manage Rising Interest Rates
Rising interest rates are almost always portrayed as bad news, by the media and by politicians of all persuasions. But a rise in rates cuts both ways. Higher interest rates Read more…
Winter 2022
June has arrived and so has winter, as the financial year draws to a close. Now that the federal election is out of the way, it’s time to focus on Read more…
Retirement Income on the House
Asset rich and income poor is the dilemma faced by many retirees. But there may be opportunities to boost your income in retirement by tapping into your biggest asset – Read more…
Elevating your Mood… Naturally
If it’s been a while since you had that wonderful feeling of euphoria, there are measures you can take to elevate your mood by encouraging production of your bodies naturally Read more…
Sharing Super a Win-Win for Couples
Australia’s superannuation system is based on individual accounts, with men and women treated equally. But that’s where equality ends. It’s a simple fact that women generally retire with much less Read more…
Sowing the Seeds of Succession
Succession planning can be difficult at the best of times without dealing with the added pressures farmers have recently faced with droughts, fires and floods. And that’s why it is Read more…
Australian Elections and Markets
Of all the set-piece news events regularly covered by the media, none generates as much noise as a federal election. With voters due to go the polls in Australia on Read more…
The Road Ahead for Shares
Trying to time investment markets is difficult if not impossible at the best of times, let alone now. The war in Ukraine, rising inflation and interest rates and an upcoming Read more…
Have the Tech Giants Been DeFAANGed?
By Wes Crill, PhD Head of Investment Strategists and Vice President Investors expecting FAANG(*1) stocks to continue the extraordinary performance of recent years must be disappointed by their returns in 2022 (see Exhibit 1). Read more…
Meme Investing? Try Human Ingenuity Instead
By David Booth Dimensional Executive Chairman and Founder. We’ve all been conditioned to see meme investors and Wall Street in opposition, but it seems to me that they have a lot Read more…
Four Ways to Improve the Probability of a Good Retirement
By Robert C. Merton, PhD Nobel Laureate and Resident Scientist at Dimensional. Around the world, individuals are being asked to take on greater responsibility for their own retirement. In the US, Read more…
Is Active vs. Passive Actually Passé?
The active versus passive debate may still raise a pulse in some circles. But Dimensional’s Head of Investment Strategists, Wes Crill, argues those labels don’t mean much anymore. In our Read more…
Making Sense of Bonds
“Why are my bond returns negative? Isn’t this the defensive part of my portfolio? If inflation is rising and interest rates are about to go up, should I be in Read more…
Navigating Geopolitical Events
This is a great 5 minute article on Navigating Geopolitical Events by Karen Umland, Dimensional Senior Investment Director and Vice President. Russia’s invasion of Ukraine is an important reminder that Read more…
Why a Stock Peak Isn’t a Cliff
Many investors may think a market high is a signal stocks are overvalued or have reached a ceiling. But they may be surprised to find out that the average returns Read more…
Is Now a Good Time for Value?
After a strong year for the value premium, investors are curious about what that means for value performance for this year. Investors haven’t missed the boat. Staying consistent in Read more…
Kicking financial goals in 2022
Tips for setting your financial goals for 2022
Investing in Inflation
Inflation appears to be firmly on the rise and while that is bad news for consumers it’s not necessarily bad news for investors. In fact, inflation may provide new opportunities. Read more…
2021 Year In Review
Australia key indices December Share markets 2021
Estate Planning
If you are in the process of estate planning, you may be questioning the appropriate inheritance to leave your children. Leaving an inheritance to your children is a wonderful and Read more…
Money & Life Issues facing Australians in 2021
In August and September 2021, the FPA again surveyed 2,005 Australians to discover how the COVID-19 pandemic and consequent economic lockdowns had affected their work, income, financial habits and outlook.
Responsible Investing on the Rise
For many people, there’s much more to choosing investments than focusing exclusively on financial returns. Returns are important, but a growing number of people also want to be assured that Read more…
Aged Care Payment Options
When it comes time to investigate residential aged care for yourself, your partner, parent or relative, the search for a facility and how to pay for it can seem daunting. Read more…
13 worst performing superannuation funds – what does this mean for YOU?
The Australian Prudential Regulation Authority (APRA) recently released a report on the assessment of 76 MySuper products. This report compared all 76 superannuation products against each other, taking into account Read more…
Every Quarter Counts
In this article, Jim Parker of Dimensional Fund Advisers, explores the high level of volatility for 2020 that’s worth a read for investors to understand the level of extremes Read more…
2020: 6 months of investment ‘whiplash’
One of the worst quarters for global stock markets in years was followed by one of the best in the June quarter. Investors looked past the initial shock triggered by Read more…
Homebuilder Government Program Explained
Due to the Coronavirus pandemic, the Australian Federal Government has embarked upon a number of measures to offer economic relief packages to help Australians through this period. Recently, theHomeBuilder scheme Read more…
Choppy Weeks Ahead: We Explain Why
Time and time again, it’s proven that investors are best served ignoring media noise and remain focused upon their long term plans. Sage advice indeed. It is also human nature to Read more…
Aged Pensioners benefit from Deeming Rate changes
Deeming is a key part of the Aged Pension social security income test. It is used to assess income from financial investments for social security purposes like bank account, shares, Read more…
How Can You Benefit from Record Low Interest Rates?
The Reserve Bank’s decision to cut official interest rates is good news for anyone with a mortgage or hoping to buy their first home. However, it’s tricky for retirees and Read more…
TRAC Most Valuable Practice Award
Last month our office manager Tracey Parkin represented TRAC with attendance at the dealer group’s Executive Education Program. Tracey attended Yale University for a management course and also visited global Read more…
Expansion of Pension Home Loan Scheme from 1 July 2019
More attention is being paid to Housing Wealth to assist Asset Rich, Cashflow Poor retirees in the USA. Equity home loans for retirees has a mixed history in both the Read more…
Additional 1 July 2019 Superannuation Changes
No More Work Test For Recent Retirees Effects those aged 65 to 74 with a total superannuation balance below $300,000 You will be able to make personal contributions for 12 Read more…
Important 1 July 2019 Superannuation Changes
From July 1 new rules come into place that may effect your super fund. Original Intent The changes are designed to protect the balances of superannuation accounts for members. Let’s say Read more…
Retirement on a Cruise Ship
One of the key insights from my time in Florida has been that everybody’s idea of Retirement is certainly different. Living half the year near family, then the other half Read more…
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