Do-It-Yourselfer or Delegator? To answer this question, you need to be aware and consider the true cost of DIY. The financial planning industry has, by enlarge, not done itself any favours in the way it framed their value and what they are being paid for by clients. The planning and advice are free, but you…
A Terrible, Horrible, No Good, Very Bad Day Inflation is at levels we have not experienced for decades. The daily volatility of markets is unnerving. Interest rates are rising. The messaging from the media is running rampant providing no comfort. We are scared and would prefer to wait it out on the side-lines. It reminds…
Finding Certainty During Turbulent Times The decisions and trade-offs that you make will shape your financial future. Most of us cannot have it all. Wanting more of one thing usually means settling for less of something else. If you are not willing to accept the volatility of markets, you probably need to reassess your needs…
Your happiness and your neighbour In a recent article I discussed the transient nature of Enough. Enough seems to be…. “Just a little bit more”. Our expectations increase along with our possessions resulting in no permanent gain in happiness. Happiness gains from merely “having more” are short lived. What is truly important to you? We…
The Ulysses Pact – keeping investors committed You only benefit from a long-term plan if you stick to it. Fund flows and behavioural research confirms that we don’t. We are hardwired to feel that we should act when we experience stress. Market volatility causes us to make decisions that hurt us in the long-term. It…
What if you could time recessions? From 1871 the US market has provided an annualised real return of 6,9% despite the 30 recessions you had to endure. That is the return if you stayed invested through all the ups and downs: buy-and-hold. But we don’t like the downs. Let’s assume you could time recessions We…
Revisiting the Advisors Alpha Many articles have been written about the advisor’s value for investors. Although a generalisation, evidence suggests that clients are better of engaging with an advisor when making investment decisions. The question that needs to be considered is the source of this “alpha”. In a recent article referencing the work of David…
Markets, Instincts and Bad Decisions A big market decline is an unnerving and painful experience. It triggers emotions that pulls our attention and perspective into a very narrow space. In times like these it always feels like the world is coming to an end. But it never does. Declines have always been temporary. This time…
Deathbed wisdom and happiness What memories will race through your mind as you approach the end of your life? We confuse wealth with more money. How we spend our time directly impacts our well-being. People often spend more time at work to earn more money for their families. Sadly, often the family would prefer more…
The Transient Nature of Enough You can’t have a goal if you don’t know what you need. The goal is only personal if it is the result of an internally guided process rather than from external inputs. When you conduct an honest audit, what are the needs and expectations that must be satisfied? Planning for…