What will you spend in retirement?
By Wealth Foundations It is often said that 25 times your desired retirement spending is a good rough guide to how much investment wealth you need to accumulate to be able to support your desired retirement lifestyle indefinitely or for financial independence. Of course, the usefulness of this proposition depends on having some idea of…
Economics and the brain: how people really make decisions in turbulent times
By Paul Harrison, Deakin University In a 2008 paper on neuroeconomics, Carnegie Mellon University economist George Loewenstein said: “Whereas psychologists tend to view humans as fallible and sometime even self-destructive, economists tend to view people as efficient maximisers of self-interest who make mistakes only when imperfectly informed about the consequences of their actions.” This view…
The Retirement Timing Fallacy
Wealth Foundations There have been numerous studies done over recent times about the cost of retiring at the wrong time. As investors, we need to manage the balancing act of taking on enough risk to maintain our purchasing power, but not too much that it jeopardises our affairs. Over the long term, we expect to…
Global economic shakeout: the cracks in Australia’s superannuation nest egg
By Michael Rafferty, University of Sydney Think the share market volatility doesn’t affect you? Guess again. With almost 60% of Australian superannuation funds invested in shares, anyone paying compulsory super contributions has something to lose from the current ructions. University of Sydney superannuation expert Mike Rafferty explains why all of us, young and old, should…
Is it more risky to short a CFD than go long?
Question: Is it more risky to short a CFD than go long? And how do you trade a CFD short, for example, what happens to interest charges, dividends etc? Thomas Roberts, Financial Writer, IG Markets Answer: There are some traders who are bound to feel slightly insecure about going short on a financial asset…
Why Aussie Traders Are Ditching Equities To Trade Foreign Exchange (FX)
It was revolutionary enough when the internet opened up access to trading the stockmarkets – but the $US6.8 trillion-a-day foreign exchange (FX) market is a much bigger pond in which to fish. Australia is one of the most active retail markets in trading FX: according to a recent report from research firm Investment Trends, 54,000…
18 Share Tips – 13 August 2012
Peter Rae, Morningstar BUY RECOMMENDATIONS Woodside Petroleum (WPL) Chart: Share price over the year to versus ASX200 (XJO) WPL is Australia’s premier oil and gas play. Production is forecast to grow strongly as its LNG projects in Western Australia come on stream. Inaugural LNG production at Pluto exceeded expectations. Well managed with a strong balance…
18 Share Tips – 6 August 2012
Marcus Obermeder, Ord Minnett BUY RECOMMENDATIONS Carindale Property Trust (CDP) Chart: Share price over the year to versus ASX200 (XJO) CDP is currently trading at a discount to net tangible assets of $5.45. The discount doesn’t include the current expansion of Westfield Carindale, one of Brisbane’s biggest shopping centres. Stage 1 of a $300 million…
Creating a trading plan
Bradley W. Gareiss, Technical Analyst, GFT A trading plan is a must. I would be will to bet that virtually all successful traders have one. However, most new traders have no plan. In fact, I bet most new traders barely even have actual reasons for entering a trade. Imagine that you are planning to loan…
18 Share Tips – 30 July 2012
Brendan Fogarty, Alto Capital BUY RECOMMENDATIONS Metcash (MTS) Chart: Share price over the year to versus ASX200 (XJO) Defensive times call for defensive measures. In a difficult market, we’re seeing value based stocks with consistent income and a high yield outperform. Metcash has established a reliable business model in each of its divisions – IGA…
