A little knowledge can be a dangerous thing.
Imposter syndrome describes the condition where a person doubts their accomplishments and has a persistent fear of being exposed as a ‘fraud’.
Usually it’s suffered by perfectionists, over-achievers and those with low-self confidence. It also recently made headlines when Australian tech entrepreneur Mike Cannon-Brookes talked about his own imposter syndrome experience.
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Clients sometimes ask us how we built the Stockspot portfolios, and why we selected 5 assets to invest in rather than 2, 3 or 10!
It comes down to the purpose of the Stockspot portfolios which is to maximise returns for each level of risk. Five assets allows us to give clients the best possible combination of returns, risk and costs.
To do this we leverage the benefits of diversification. Diversification simply means that by combining investments with different characteristics you can improve the quality of returns in your portfolio.
Quality of returns is measured by how much risk you need to take to earn a certain return. Since all investing involves taking some risk, the aim is to minimise the risk you need to take to earn the return you want. Diversification across assets enables you to take less risk to earn better returns.
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Stockspot’s Fat Cat Funds Report 2018 has once again found that fees make all the difference when it comes to your retirement savings. If your super funds charges you high fees, chances are you could be $250,000 worse off when you retire.
The Fat Cat Funds report looks at the performance of Australia’s largest superannuation funds. It names the funds that take advantage of Australians unwittingly paying away their retirement funds in superannuation fees.
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When you take a step back, you may be surprised at how many bank fees, charges and costs we take for granted.
As a result of their cosy oligopoly, Australian banks have become the most profitable in the world, collecting $31.5 billion in profit this year. That’s after bank CEOs take $30 million a year in salaries and bonuses. But have you ever wondered why some fees exist at all – or what could be done to get rid of them?
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October marks the UN’s International Day of The Girl and the theme is ‘Skilled Girlforce’. A year-long campaign to support girls to get the skills they need to enter the workforce.
Every time I see my two young nieces, I’m reminded of what perfect, untouched little souls they are. They’re so lucky to have been born in a country where girls do have the opportunity (theoretically) to do whatever they aspire to.
Yet I often worry when will the influence of social media and unconscious gender bias take hold? According to the UN by the age of 6 girls already consider boys better suited to ‘really, really smart’ activities!
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Financial markets can be quite scary at times. Headlines like ‘$50 billion wiped from the ASX’ can make it difficult to stay the course and remain invested when shares are going up and down like a yo-yo.
First-time investors tend to sell when the market falls out of a fear it will continue to go down and never return.
Research shows people feel the pain of losses twice as much than the enjoyment of profits. It’s our fight-or-flight response, the amygdala part of our brain kicking into overdrive to avoid the potential for loss.
People don’t like uncertainty and will avoid risks if possible.
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Our client Guy Bane, recently spoke to the Daily Telegraph about his Stockspot investing experience.
He kindly shared why he invests his savings with us and helped to spread the Stockspot message. We love Guy’s clear headed approach to managing his wealth, so we’re sharing his story here for those who didn’t see it.
Guy has been a Stockspot client for over two years. He’s 29 years old, lives in Sydney and works as an accountant at a fintech startup. He’s a busy young professional, so doesn’t have a lot of time left over for deep market analysis and managing investments.
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The latest data for active fund returns to mid 2018 doesn’t bode well for traditional active fund managers.
Standard & Poor’s (S&P) SPIVA report for mid 2018 reveals that over 80% of Australian fund managers have underperformed the index over 15 years. The results are even worse in the US where 92% have delivered lower returns than the S&P 500 index.
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Everyone learns trigonometry at school but very few people actually need to understand the angles in triangles.
On the other hand, the basic maths of money is something that can radically improve your life for the better.
With that in mind, here’s five basic financial lessons we think everyone should understand because they can have an enormous impact on your wealth, freedom and family.
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Paridhi Jain believes that getting good with money shouldn’t be hard, scary, or boring.
We couldn’t agree more!
Paridhi is the founder of SkilledSmart, an education program she calls ‘money school for adults’. Whip-smart and passionate about helping Australians better understand their finances, we caught up with Paridhi to discuss why adults need money lessons and how her early career speaking to people in financial stress planted the seed that led to SkilledSmart.
This article originally appeared in the ASX September 2018 newsletter.
Phenomenal ETF market growth of 70% over the past two years in Australia.
The growth of exchange-traded funds (ETFs) continues to be the biggest trend in asset management of recent decades. Their prominence has grown as the sector has matured and investors seek better diversification for their portfolios.
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There’s no shortage of investment websites and blogs out there.
Here are 3 of the best investment blogs that I love learning from each week and that I think should be high on every investors reading list.
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Investing is the best way to create long-term wealth and financial independence.
If you’re just starting out no doubt you’ve figured out that it can be confusing at first. There are lots of decisions to make so it’s important to make sure you’re prepared to give yourself the greatest chance of success.
With this in mind, here’s the five things we think everyone should consider before investing.
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Stephanie Bendixsen is one of Australia’s most well-known personalities in the video game industry.
She began her career in 2009 when she joined the ABC’s popular gaming show ‘Good Game’ as its first full-time female presenter. She has since gone on to present a long list of gaming shows and documentaries, while also finding the time to author a series of children’s books: Pixel Raiders. She is now in production with National Geographic on a new exploratory show that seeks to unearth fascinating discoveries about Australia’s science and history.
We were lucky to grab some of Steph’s time to dig into her career, discuss female representation in tech and gaming, and importantly: how she moneys!
We’ve made investing for children free!
We all want the best for the little ones in our life. So naturally as investing evangelists we believe children should be able to benefit from investing in the same way adults can.
Which is why clients who invest on behalf of a child will no longer be charged fees for portfolios up to $10,000^.
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It’s that time of the year again when super funds release their annual performance. This blog looks at how the funds twist their performance relative to other funds and indexing. The funds’ PR is parroted by the ratings agencies whose tables and good news story are accepted at face value by the media.
Firstly, we look at how funds manipulate their inclusion into the categories set by the ratings agencies.
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Something you may not put a lot of thought into when you invest is how those investments are held. Sometimes investments aren’t legally owned by you but instead owned by another entity on your behalf. That may sound like a minor difference however there can be significant consequences when it comes to security, tax, costs and the portability of your portfolio.
Broadly investments can be held in 2 ways:
Directly by you on your own HIN (Holder Identification Number)
Indirectly via a commingled fund or omnibus account structure
Historically stock brokers used a direct ownership model, so each of their clients had their own individual investment account or HIN and all investments were registered on the ASX’s computer system called CHESS (Clearing House Electronic Subregistry System). If the stock broker went bust it didn’t impact the end client because their investments were safely separated.
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Australian share ETFs continue to gain in popularity. As of May 2018 there is over $10 billion invested ETFs tracking Australian shares.
Each year we compare all 175+ ETFs in our Australian ETF Report. Here we road test 5 popular Australian share ETFs, comparing them across 6 factors:
“Rent money is dead money” or so the saying goes. It’s a popular myth perpetuated by plenty of people working in the real estate industry. However as at June 2018 capital city house prices experienced their first annual fall in 6 years, dropping -1.1%. With house prices cooling, renting is starting to look attractive again.
Like any financial decision, there are costs and benefits associated with buying or renting. Here we discuss some of the important pros and cons to consider when deciding whether to rent or buy and look at which one has really worked out better over the long term in Australia.
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Some people have unthinkable depths of grit, determination and talent. They achieve amazing feats while the rest of us shake our heads in wonder. Matt Levy is one of these people. Matt is a 6 time Paralympic swimming medallist, his most recent win saw him return home with the gold medal from the Commonwealth Games on the Gold Coast.
His days start at 4.30AM, consist of 5km of swim training, then he goes to his day job, or in his words “train, eat, sleep, repeat”.
Stockspot was lucky to talk to Matt about the incredible challenges he faced in early life and how he balances a professional sports career, charity work and managing his finances.
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One of the main challenges investors face is ‘when is the right time to invest?’
As an investor your aim is to make money, so naturally it’s tempting to try and time your entry into the market and wait for prices to fall to grab a bargain. The problem is investment markets can move quickly and you’re just as likely to miss out on making good returns by waiting to invest.
The truth is markets can go up, down and sideways over the short-term and it’s almost impossible to pick the top or bottom (even for professionals). However if you’re completely out of the market you have no way to benefit from the gradual increase in prices over time.
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ETFs continue to be the biggest disruptor to the asset management industry and at the same time are blurring the lines between different styles of investing.
Over the past 15 years, over US$2 trillion has moved out of active funds and into index funds and ETFs. Globally the ETF market is projected to reach US$10 trillion by 2020 and be larger than the active managed fund market by 2027.
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Not all industry super funds are equal, here’s how to spot a good one.
The Productivity Commission recently released their draft report on superannuation efficiency and competitiveness. What they found mirrors our Fat Cat Funds Research that shows that while Industry super funds outperform Retail funds, there are plenty of areas for improvement.
Our 5th annual Fat Cat Funds Report, analysed over 2,000 super funds and 2,000 managed funds to see how they performed over 5 years.
Once again we found industry super funds beat retail super funds across 10 of 11 investment categories. Industry funds had a smaller percentage of Fat Cat Funds and more Fit Cat Funds.
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Lisa Messenger is the vibrant CEO of the Messenger Group, as well as Founder and Editor-in-Chief of Collective Hub. She previously worked globally in events, sponsorship, marketing, PR and publishing, has authored and co-authored 24 books and is now an authority in the start-up scene. She encourages an entrepreneurial spirit, creativity, innovation and lives life to the absolute max.
Stockspot spoke to Lisa for our People and Perspective series about career challenges and entrepreneurship.
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