The Wotherspoon Wealth Blog

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...

Will you outlive your money?

Retirees want to be sure their money lasts through their lifetime. This is a tricky problem to precisely solve because we cannot know in advance how long we’ll be allotted. Despite debate about obesity, smoking and cancer, Australians are now living longer, healthier lives. Though it may seem optimistic, living...

The Credit Card Juggle

Managing your credit cards Even when you’re in a strong financial position, managing your spending with credit cards is a juggle. Most of us spend via credit or debit cards for their convenience and commonly, people pay off their credit card in full each month. However, since banks and credit...

Outlook for 2017

Economic outlook for 2017 Expect abnormal asset price volatility due to US uncertainties and higher geopolitical risks. Interest rates have begun to rise. But this year may be better than last – US earnings growth, continued easy money and some healthy hints of inflation from a largely skeptical market sentiment...

Superannuation Reforms Now Agreed

The government’s new superannuation reforms are the largest superannuation changes since 2007.  The legislation giving effect to these reforms has now passed both houses of Parliament.  Now superannuants and their advisers can more confidently plan around the implications arising from these changes. From 1st July 2017 this law will: Prevent...

The Majority Finds its Voice

In June this year, Britons reacted to the porous EU immigration system and voted to leave. Soon after, Australians voted to not give absolute power to one major Federal party. By November, US citizens chose a new President with a billionaire lifestyle and tenuous relationship with the truth, hoping he’d...

Time to re-think property?

The price of houses is driven by supply and demand – high demand with low supply pushes prices up, while high supply and low demand pushes them down.  A house goes up in value because potential buyers are willing to pay more – usually because they think future demand will...

Trumped?

The dawning of the Trump era surprised many and markets will be volatile on the uncertainty it creates.  Like Brexit, stock markets may fall initially but soon regain composure.  The best day to buy may have been the day after the election while a Trump possibility was digested.  Regardless, we...

Should I fix my mortgage rate?

“With fixed rates as low as 3.69%, now is a great time to seek a better deal for your home loan”, says Megan Henderson.   Not so long ago, fixed rates at 4.59% looked appealing but now you can get as low as 3.69%. So, now is a great time...