Funds Focus

Having managed a team of planners for a number of years, one of the common mistakes I have seen with both advisers and retirees is the assumption that a 12%pa average return in equities is better than a fixed return of 7%pa from cash.

For the most part, that’s not a bad assumption to make as we know that sharemarket returns are typically volatile but tend to outperform cash over the longer term.

As financial planners we are taught to expect that clients in retirement should take less risk

Strategies for income

Often considered “boring”, overlooked for their lack of zip and flexibility, a guaranteed income for life is not to be sniffed at
Annuities are often overlooked by advisers in structuring client portfolios. The cynic in me says “of course, they don’t pay enough for advisers to consider them”, but I think the reality is that many investors and advisers alike have historically shunned them because of their perceived “low returns”. Who could blame them, with the

First Home Saver Accounts
The recent establishment of First Home Savers Accounts has provided investors looking to purchase their first home with an opportunity to get a return of over 50%pa.

A First Home Saver Account (FHSA) is designed for home buyers who are trying to save for their first home. The FHSA is a commitment to saving as a FHSA must receive minimum contributions over four financial years and can only be used to purchase a home once this condition has been satisfied.

It