Financial Tools
  Client Portfolio Access
  New Client Kit
  Enquiry / Seminar Registration
Hot Issues
An investor's personal trainer
SMSF trustee penalties going up
Contraventions rife among non-advised SMSF trustees
Dealing with investor uncertainty
Reserve bank gives the economy a lift
Retirement planning: the gap between intention and reality
Market Update – April 2015
Budget 2015 - some professional opinions
Australian Government - Budget 2015
What does the ATO want from you?
Making sense of the new excess contribution rules
Greying, working and contributing
Simple-yet-smart investment housekeeping
Market Update – March 2015
Customer-centred innovation underpins high satisfaction among financial advice customers
Two sides to the age profile of SMSF members
Actuaries call for end to superannuation policy tinkering
ATO urges caution on pensions
Market Update - February 2015
Aussie economy shifts gears as structural changes take hold
The catch 22 of retirement savings
Are there reasons to help the tax man do his job?
Some financial terms explained
Small business paradox
Good financial planning finally has a value: 23% more income in retirement
Articles archive
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 3 July - September 2014
Quarter 2 April - June 2014
Quarter 1 January - March 2014
Quarter 4 October - December 2013
Quarter 3 July - September 2013
Quarter 2 April - June 2013
Quarter 1 January - March 2013
Quarter 4 October - December 2012
Quarter 3 July - September 2012
Quarter 2 April - June 2012
Quarter 1 January - March 2012
Quarter 4 October - December 2011
Quarter 3 July - September 2011
Quarter 2 April - June 2011
Quarter 1 January - March 2011
Quarter 4 October - December 2010
Quarter 3 July - September 2010
Quarter 2 April - June 2010
Quarter 1 January - March 2010
Quarter 4 October - December 2009
Quarter 3 July - September 2009
Quarter 2 April - June 2009
Quarter 1 January - March 2009
Quarter 4 October - December 2008
Quarter 3 July - September 2008
Quarter 2 April - June 2008
Quarter 1 January - March 2008
Quarter 4 October - December 2007
Quarter 3 July - September 2007
Quarter 2 April - June 2007
Quarter 1 January - March 2007
Quarter 4 October - December 2006
Quarter 3 July - September 2006
Quarter 2 April - June 2006
Quarter 1 of 2009
A few screws loose?
Super & Retirement Question
The true measure of financial strength
Small Business & General Business Tax Break
Investment Markets Data - To 28th February 2009.
Super beyond the gloom
Why do companies care when their share price falls?
Reduction to minimum pension drawdowns for 2008/09.
Double-edged sword
Investment Market Data - to 31st January 2009.

Fed to use all tools to help US economy

Lessons learned the hard way

Superannuation Funds Allowed to Give Guidance

More cruel advantage in a troubled market
Investment Markets Data - To the 31st December 2008
A few screws loose?

By Robin Bowerman
Smart Investing
6th  March 2009
Principal & Head of Retail, Vanguard Investments Australia

After the market has fallen so heavily, many investors would understandably feel they must take decisive action to protect their portfolios from further damage. But such responses often cause more damage than good.

Depending upon their personal circumstances, of course, most investors shouldn't feel obliged to do much at all right now.

Jason Zweig takes up this theme in The Wall Street Journal this week, writing that any investor who has not been badly shaken by the severity of the bear market "has a few screws loose". That said, Zweig suggests that investors should try to direct their concern into sensible, non-dramatic actions that will improve their financial future.

"Instead of big impulsive steps you may regret later, you should take small and careful steps that will make you feel you have taken charge," he writes. "Mental health experts have found that merely believing you have some control over a painful situation is enough to make the pain more bearable.

"For investors, that means being deliberate in everything you do and making sure that your decisions are gradual and incremental, rather than sudden and drastic," he adds. "Move on tiptoe."

Zweig lists a few of what he calls "constructive steps". These include:

  • Take an inventory of all your investment assets. This will show how your portfolio has coped with the downturn - it may not have suffered as much as you suspect. And by taking an inventory, you can check whether your super and non-super investments are appropriately diversified to reflect your tolerance to risk.
  • Review your equity fund managers. Tax on capital gains, crystallised if changing fund managers, may have been erased or at least significantly reduced by the fall in share prices. He suggests that investors consider switching from high-charging managers to low-charging index funds - if appropriate for their circumstances. This way, investors will still be exposed to the market in order to benefit from a rebound.
  • Think about using some cash holdings to pay off costly credit card debts. Many investors are now, of course, cashed-up.

His non-nonsense, sensible tips are highly appealing at this time of high drama in the market. Just because share prices have turned sharply downwards and the market is highly volatile, investors shouldn't feel obliged to respond in any forceful way. That's the central message.








  Financial Advisor | Financial Planner | Financial Adviser | Financial Planning | Financial Planner Sydney