The Wotherspoon Wealth Blog

Top 5 Investor Insights For 2019

2018 was another interesting year for investors with particularly volatile markets since October! So how does 2019 bode for investors?   No more ‘easy money’ The market significantly shifted its thinking on interest rates and monetary policy during 2018. Since the GFC 10 years ago, global central banks busily stimulated...

Patience Pays

For investors, there is always something to worry about but history shows the huge benefit of long-term investing. For over 140 years, our Australian stock market made positive returns 80% of the time. Over that time the average growth rate has been 8-9% p.a., including 4.5% dividend and despite some...

Young, Growing India

China and India are the two most highly populated countries in the world.  Like China, India will become a global economic powerhouse over the next 30 years. But unlike China, India is a democracy. Though its wealth is smaller than China’s, it is now growing faster with a much younger...

Investing in Energy

After a decade of divisive politics and no consistent energy policy, business is crying out for reliable consensus. When common sense eventually prevails – solar, wind and batteries seem likely to drive Australia’s future energy as coal diminishes significantly past 2030. Energy companies are aware of this and despite an...

Compare the pear… apples and oranges

What’s in a name? Industry and retail superannuation funds usually offer multi asset ‘balanced’ or ‘growth’ oriented investment options, which become their ‘flagship/default’ funds. But what does it really mean to be ‘balanced’? Are are all ‘balanced’ funds the same? The term ‘balanced fund’ originally meant a balance between defensive...

Three-tier approach to retirement

Running out of money in retirement is one of the biggest worries for retireees. A disciplined savings and investment strategy over your accumulating years determines how much you accumulate. Equally important is how and where you allocate your assets during your retired years. If you have ample capital, you can afford...

Trump Trade Wars

Have we learned anything about investing from the World Cup? Perhaps it’s that nothing is a sure thing – ask Germany, Italy, Spain, etc. The analogy for investing is that no investment is guaranteed, so diversifying away some risk is really important. Apart from diverse spread, buying quality assets while...

Investing amid Geopolitical Change

We’re living in ‘interesting times’ as the Chinese curse is said to have wished. China is steadily flexing its growing power and Russia’s shrewdly successful global chess game has become more visible. Both are led by effectively ‘Presidents for life’ with longer timeframes than the west, unfettered by democratic values....

New Default Super Possibility?

In the third part of the Productivity Commission’s examination following the ‘Murray’ Financial System Inquiry, they reported this week on the efficiency and competitiveness of our super system and proposed a new default super model. They found two fundamental flaws working against member interests. Many people have unintended multiple accounts...

Making the Transition to Retirement

Retirement is a significant change that can elicit wide ranging emotions. In building your new identity outside the workforce, it’s as important to deal with your emotional needs as it is to manage your financials. Unfortunately it’s not as simple as just waking up one day and making the decision...