There is hardly anything in life that doesn’t involve taking some risk – even getting out of bed in the morning! Many people are fearful of investing because all they focus on is the risk of losing their hard-earned money. Others look for great returns and forget about the risk entirely. As with anything, there…
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It’s obvious that investors select investments based on the rate of return they can earn on their funds. For share investments, the rate of return has two components: 1 – Sell the share for gain. Assume you purchase 100 shares $20 each. If you later sold the shares for $40 each you have made a…
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When financial markets experience volatility, many investors obviously worry; but what are the real effects of a “volatile market”? If you are a long-term investor, with a time-frame of 5 years or more, you cannot afford to overlook the benefits of growth investments such as shares or property. As an astute investor you will be…
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Warren Buffett got into the investing game early. He bought his first shares of Cities Service for $38 each, at 11 years of age. Since then, the investing legend from Omaha, Nebraska has amassed a fortune near $75 billion and has become one of the richest men in the world. But if Warren Buffett wasn’t…
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Over the last 100 years global stock markets have experienced many major set-backs, including the Great Depression of the 1930s, several wars, the ‘crash of 1987’ then the Global Financial Crisis (GFC) twenty years later. But for every low, a recovery has followed – they just take time. What stops most people from investing in…
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Many of us would like to think that ‘older’ means ‘wiser’, but when it comes to money that isn’t always the case. The complexity of Australia’s superannuation and pension systems doesn’t help. The upshot is that there are a number of common mistakes that retiring and retired Australians make. What are those mistakes and how…
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Picture this… when you were 21 years old your well-meaning but financially inept uncle put $1,000 into an ordinary bank account for you with instructions to leave it there and “let the bank’s interest turn it into a fortune”. You followed his directions only to discover 30 years later the balance of your ‘fortune’ was…
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The main reason people go into business for themselves is quite simple – to have more control. For others, wealth creation is the main focus, although small business also brings with it the higher chance of failure and loss. Is the hard work and extra risk worth it? If you are a small business owner…
read moreWhile share markets are performing well it’s easy to sit back and watch investments rise in value. However, it’s a different story when markets are not performing so well, and uncertainty abounds. Holding your nerve is not easy. So how do experienced investors handle this? Here are our nine rules of investing: 1 – RECOGNISE THE…
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The real power of investment comes from compounding returns – the process of putting your investment income straight back to work so it can earn more income. To help their investors reap the rewards of compounding, many companies offer dividend reinvestment plans (DRPs). The potential benefits of a DRP Under a DRP, investors can choose…
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