Part of being human is to be pretty bad at spotting and accurately assessing the long-term impact of changes that are happening around us today.
With the benefit of hindsight even the greatest disruption to existing industries and businesses seems obvious, but it’s never nearly as clear in the early stages of that disruption, or creative destruction.
If you think that owning shares in each of the four big banks represents diversification and reduces the amount of investment risk in your portfolio, think again.
If the government gets its 2018 Budget measures passed, by 2024 anyone earning between $41,000 and $200,000 will find themselves on the same marginal tax rate of 32.5 per cent. Changes to personal income tax rates, while addressing the perceived problems of so-called “bracket creep”, inevitably lead to changes in the relative attractiveness of certain investment structures.
A hallmark of a professional association is the willingness and ability to independently and impartially discipline its own members. During the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, two key financial planning associations were grilled over how they handle complaints against their respective members.
When things change in investment markets they often change quickly. A trend that has been running strongly can come to an abrupt end, and a sector of the market that has been out of favour or overlooked can rapidly come back into vogue.
Market research group CoreData says advice is plagued by perceptions of high cost and low value; that individuals don’t believe their current situation warrants the time and effort to seek advice; and there’s an over-arching lack of trust in advisers and their services.
Does being a good long-term investor also make someone a good long-term business manager? Platinum Asset Management’s shareholders, staff and clients are about to find out.
This month’s royal commission hearings could provide a clear demonstration of why new advice laws benefit practitioners as much as they benefit consumers.
This week the Financial Adviser Standards and Ethics Authority (FASEA) updated its guidance on how existing advisers can raise their academic qualifications to meet a new minimum education standard. It’s provided a clearer picture of just what needs to be done by all advisers to reach the standard by January 1, 2024.
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