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Category : Australia Market

2020 Vision for Financial Fitness

  • Willard Lloyd
  • January 16, 2020
Reading Time: 3 minutes

What better year to have your financial health in tip top shape than the one requiring 20/20 vision!

The start of any year is always a good time to assess your financial situation and make sure you are on track to achieving your dreams, but the start of a decade is even more significant.

2019 Year in Review

  • Willard Lloyd
  • January 10, 2020
Reading Time: 4 minutes

It was a year of extremes, with shares hitting record highs and interest rates at historic lows. Yet, all in all, 2019 delivered far better returns than Australian investors dared hope for at the start of the year.

The total return from Australian shares (prices and dividend income) was 24 per cent in the year to December.i When you add in positive returns from bonds and a rebound in residential property, Australians with a diversified investment portfolio had plenty to smile about.

Humming along in the background, Australia entered a record-breaking 29th year of economic expansion although growth tapered off as global pressures mounted.

What are ETFs?

  • Willard Lloyd
  • November 1, 2019
Reading Time: 2 minutes

Like a traditional managed fund, an exchange-traded fund (ETF) offers the opportunity to invest in a portfolio of securities, such as shares or bonds.

As with a managed fund, each ETF unit represents an undivided interest in the underlying assets. In Australia, this interest is usually in the form of a unit in a unit trust. ETFs and managed funds also both offer professional management, so you don’t have to keep track of every security your fund owns. However, ETFs are different in that they can be traded throughout the day on an exchange at a market-determined price.

Most ETFs use an indexing approach. Index ETFs are built so that their value can be expected to move in line with the indices they seek to track. For example, a 2% rise or fall in an index should result in approximately a 2% rise or fall for an ETF that tracks that index (before fees and expenses).

Short-Sighted Risk Aversion

  • Willard Lloyd
  • October 31, 2019
Reading Time: 4 minutes

Would you take this deal? I’m going to flip a coin. If it comes up heads, you win $200.00. If it comes up tails, you lose $100.00.

Most would decide not to play. It’s just not worth it. The odds are not in your favour. It’s nice to win $200.00 but nobody wants to lose $100.00.

This mindset applies to clients who fret over their account balances daily. In a bad market, the odds appear to be heavily stacked against us. It’s just not worth taking the risk when every day brings bad news when the odds are not in our favour.

What if you offered to flip the coin one hundred times? That would give somebody pause. The odds appear better. They may not be, but the long game is more appealing. It seems we have a better chance of winning over time.