The Wotherspoon Wealth Blog

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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...

How Much Super Do I Need for Retirement?

What is a Comfortable Retirement? Most life-changing events involve an ongoing process of emotional adjustment. Retirement is no exception… especially when faced with the likelihood of a retirement of about 25 years. Indeed, at least one member of a couple aged 65 will likely reach age 90 (many will push...

What the 2018 Budget Means for You

Background Our Reserve Bank has kept interest rates at a record low level because our economic growth is quite modest – wages growth is still very slow and inflation remains below target. It took Government several years to restore tax revenues after 2014 when the commodity boom ended because companies were...

5 things you need to do now for a comfortable retirement

No matter how far off retirement may seem, there are 5 important things you could be doing now to ensure your comfortable retirement. 1. Write down your retirement goals & objectives There is a saying that goes “if you fail to plan, you plan to fail”. The same is true...

Misconduct amid Poor Governance

The image of financial planners has taken a battering for years at the hands of institutions seeking to sell product under the guise of advice. It began in 1988 when the Government stopped individually licensing advisers and allowed company licensees to authorise them instead. By comparison, public practice accountants and...