Wealth Creation

Most people are in love with the destination, not necessarily the journey. However, to achieve our financial dreams, we need to set priorities that we are willing to sustain in our lives, not just focus on the outcomes we desire.

Both income and capital growth are important aspects of investing, but they can serve different purposes when part of a well thought out strategy, which is prioritised based on your needs, objectives, and circumstances.

It certainly can't have escaped your notice that the shares in the top companies of Australia and the world got hit mighty hard last year. The extreme volatility has dominated the news headlines, adding fuel to the post Covid uncertainty.

Higher medium return potential (assuming inflation is tamed)...

Key points

• The fall in bond and share values and rise in their investment yields on the back of higher inflation has seen our medium term (5 to 10 year) return projections for a diversified mix of assets rise to around 6.8% pa.

What is the essence of successful long-term equity investing? It’s embedded in the right focus – on things we can control and things that matter. It means basing our investment policy on our financial plan as distinctly opposed to a view of the economy, the markets and the daily noise surrounding them.

Key points

• Successful investing can be really difficult in times of uncertainty like now making it important to stay
  Read more …

Mainstream and financial media keep presenting us daily with the ever-present worry list surrounding investment markets that relates to economic activity, profits, interest rates, politics, etc. Or by the perennial predictions of an imminent crash.

Buying your first car, helping the children get a good education, enjoying a rewarding retirement.