As an investor, you’ll have experienced a fear of losing money and/or a fear of missing out on potential gains.
A lot of new clients who come to meet Lighthouse Financial Advisers get worried when they hear that they will be invested in the most diversified companies around Australia and the world.
“Should we get out now and come back in when things settle down?” is a question that usually finds its way into investment conversations when the value of one’s investment has dropped.
When we see our superannuation, balance rise and fall due to volatility, we as humans instinctively think that there’s something wrong and feel that we have done the wrong thing by putting ourselves in that situation.
There are a fair few strategies that we’ll be able to use immediately with most of our new clients to help achieve their retirement goals.
There is a common belief that in retirement you should have moved all your super into cash and defensive assets (such as fixed interest), but it really depends on your current situation.
Most people come in to see us about 10 years from retirement and are usually very surprised on what can be achieved if they decide to switch on and focus.
There is common belief that you should move all your super into cash and defensive assets (such as fixed interest) when you retire. But it really depends on your current situation.
An active fund manager selects the companies and sectors they believe are going to outperform a common index. For example, an active manager may benchmark their performance against the ASX 200. This index reflects the performance of the 200 hundred biggest companies in Australia.
Who wouldn’t people want all their investments going towards companies that outperform index management?
This has always struck me as a question that doesn’t make sense.
In theory if a financial adviser asks their client this question, they would shoot back a defined time frame i.e. 3 years.
In reality clients usually answer, “I don’t know”.
Dallas Davison, Michael Hogue and Ali Hogue.