Tag Archive for independence

How Do I Measure Risk?

What risks are you prepared to take
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So, what risks ARE you prepared to take? Some people think it is fun to bungey-jump off a cliff or a bridge or a crane when they are travelling overseas, while others are not prepared to do this – whether it be from fear of heights, concern over the health effect on their eyes or…

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The Global Financial Crisis Exposed

All is not as it seems in the world of high finance
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Money, power, bias – and truth. The Global Financial Crisis (now simply designated ‘the GFC’) brought all of these priorities, and the conflicts they cause, into stark view. A new movie “The Inside Job” successfully highlights the interplay of vested interests, hidden compensation and regulatory policy stupidity that suggests not only that the eventual crisis…

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Is adviser bashing the new black?

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One of my favourite stupid sayings goes something along the lines of “…. is the new black” (insert whatever is the trend of the moment. It is ridiculous because you cannot be “new” and considered a classic both at the same time). So i am actually being terribly clever on this lovely Friday, by using…

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Another day, another lynch-mob

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Far from me to sit on my porch playing the fiddle, while watching the business district i live in being burned to the ground. That once-magnificent newspaper, the Australian Financial Review, yesterday headlined the changes in the financial industry as some institutions move to drop commissions from their products. All very laudable steps. Follow the…

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Hidden costs in superannuation and investments

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Just a quick note today… With the broohah surrounding the government announcements on legislating to remove commissions from superannuation and investment accounts there are all sorts of comments being made on the likely impacts – some more informed than others. Feedback in a number of online forums suggests that many people are happy with the…

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Should the Government control how your super is invested?

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There is currently no specific direction provided by Government regulation (ignoring very specialised situations) on where a super fund must invest money. There is a requirement instead that the Trustee ensured the fund assets are appropriate to meet its obligations to fund members (that’s my interpretation of far more technical wording). Over time there have…

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Who needs a Financial Planner?

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Correct answer : No-one. Notes : This is correct on the same basis that no-one needs a doctor, a lawyer or a politician. Each of these professions fails to meet the “basic needs” criteria. The same argument could be put for trade professions such as plumbers, brick-layers, truck drivers or mechanics. It is quite possible…

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Legislating to ban commissions on superannuation

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For many years various pressure groups around the country have been trying to have legislation brought in to ban the payment of commissions from superannuation accounts. Pressure has mounted even further as links are drawn between commissions generated and the recent failures of MIS scheme operators Great Southern and Timbercorp, as well as the demise…

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Bias in action

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Having just spent a bit of time setting out the relative aspects of bias that exist in the Financial Planning industry, i thought it relevant to highlight just how prevalent and deeply ingrained this tendency for bias is. Please bear in mind that i am not making a value judgement here – bias will always…

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