The Wotherspoon Wealth Blog

Old Investment Rules for a New World

Since the Great recession triggered by the global financial crisis of 2008/9, investing has been challenging. Eventually, central banks around the world dropped rates to the lowest levels for over 60 years to stimulate financial confidence and this pushed asset prices up. It’s been good news for investors but are...

Are you financially fit?

Want to check your financial health? Let’s start with the key behaviours that influence wise money decisions… What you know about money matters is ‘financial literacy’. But desirable financial outcomes require more than this… they need the wise application of that knowledge. Unfortunately, there is a yawning gulf between ‘knowing...

Investing for Income: Part 3

In this three-part blog series, we’ve considered some options beyond cash and deposits to boost your income and suggested 5 rules to follow when investing in shares for income. This week, we seek to bring it together and explain how a portfolio needs to be individually tailored to achieve your...

Investing for Income: Part 2

In Part 1 we considered some options beyond cash and deposits to boost your income and asked the question; how much risk is enough? Part 2 of our Investing for Income series suggests five rules to follow when investing in shares for income. A key benefit of investing in high...

Investing for Income: Part 1

After the world’s ‘easy money’ reaction to the GFC, a typical balanced portfolio now produces around 25% less income. This has particularly been driven by significantly lower income from fixed interest investments like cash, deposits and bonds. As low rates are expected for many years, investors are understandably tempted to...

Federal Budget Aims for Stability

This year’s Budget has begun to focus on revenue, not just spending cuts. It aims to contain our debt so we get back into surplus in about 12 years, though the assumptions behind this may prove optimistic.

EOFY Planning for SMSF Trustees

The end of the financial year always seems to approach faster than it should. Given the impending July 2017 superannuation changes, being on top of your end of financial year planning is as important as it has ever been. This year it is essential that you consider maximising the existing...

Rise of the Techno-Privileged Class

After the GFC in 2008, Chair of America’s Federal Reserve Bank Ben Bernanke, toiled to avoid the mistakes of the Great Depression.  Banks were bailed out, interest rates lowered to almost zero for easier money access – and President Obama promoted fiscal stimulus with some success. Low interest rates and...

Beware the wolf in sheep’s clothing

We are increasingly concerned that Australia’s major financial institutions are hindering the development of professional financial planning. Regulation is way overdue to formally differentiate ‘product selling’ from professional, objective financial advice. The Australian Securities and Investments Commission (ASIC) Report 515 Financial Advice: Review of how large institutions oversee their advisers, makes disturbing reading...

Property Bell Tolls

Over the last 30 years, strong investment returns have largely been driven by falling interest rates. So with interest rates now about as low as they can go, we can expect lower returns ahead. “Our booming property market has been driven by low interest rates more than negative gearing” The...