Financial Planning Perth

General discussion on the activities of a financial planner and their clients, as well as comment on broad industry trends and practices.

The cost of renting…

Perth Housing rental costs and house prices
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Hard on the heels of my last post about Australia’s housing shortage/surplus comes some information^ on Australia’s top 25 Residential property rental increases  as measured by council areas. The highest median rent in Australia belongs to… Port Hedland. Yes, the median rent in Port Hedland ($1,900 a week – that’s $98,800 a year people…) has…

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A hundred billion dollar error in the housing market

Dr Evil can ransom the entire world for one hundred billion dollars - so it's a LOT of money.
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  There are few arguments more heated than those based around the future direction for house prices. i am about to make some statements that many people will find disturbing so please, if you have a weak stomach for discussion on house prices, change channels now… A hundred billion dollar error One of the great difficulties that…

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“Risk On/Off” and the marginal pricing of shares

Estimating share prices is a tricky thing
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Financial media have started using the terms “risk on” and “risk off” to describe the daily swings that are so vividly apparent in market pricings around the world. Just what do these terms refer to? Markets are priced at the margin Deep breath, and please bare with me on this one because it is extremely…

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How long is “long term” investing?

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If there is a single phrase that the financial industry misuses more than any other, it is “long term”. It’s a bit like deciding to get fit by telling everyone you’ll do more exercise. You feel satisfied, because anything is more than you are currently doing – but you and i both know that “more”…

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Guaranteed Superannuation Pensions?

Large protests in France, over pension issues.
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There are few areas of government expenditure in the world that are more contentious than those associated with the payment of pensions. This includes “age pensions” in countries that have such things, as well as “employer pensions” from time spent with an employer. There is a huge range of types of super funds available, with…

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Financial Planning Bias

Do you know who is really driving the recommendations from your advisor? (image source unknown : possibly http://explow.com/shhh)
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Who is behind the name that is behind the advisor that gives you advice? Financial Planning Bias – All is not as it seems We have covered the bias that is inherent in the Australian financial industry a few times now. The key reason for this bias is the government regulatory requirement that all Financial…

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Stupid is as stupid does

Stupid is as stupid does, my ma' always said.
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IF you were a wealthy individual, worried about the economic environment that you were in, would you lend millions of dollars to your government at a nil interest rate? Well, it seems that many people in the world think that is a fantastic idea. The German government has pulled one of the best financial swifties…

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Financial market cycles and “moods”

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Financial Planning “This time it is different”… One of the most famous sayings in financial circles, and the one that we can all laugh at, when we read about economics professors or sharemarket professionals making suggestions such as markets having reached a permanent high plateau – just prior to the onset of the market crash that…

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Financial advisors are cheating you

financial planner bias. it's true, financial planners eat money for breakfast
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At least, that is the impression you can get when tuning in to some sections of the media. As covered in previous posts, the post-GFC world is a tumultuous one, with many long cherished “laws” of investment being turned on their head, and many investors feeling helpless in the face of small, zero or negative…

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Managed funds, Listed Companies or ETF’s?

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One of the debates raging in the post GFC financial world concerns the relative advantages and disadvantages of investment structures. For example, many people have decided that “managed funds” are expensive, opaque and have bad returns. At the same time, there has been a substantial lift in the funds being invested into “Listed Investment Companies…

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