Later this month around 630,000 Australians currently qualifying for a partial age pension will receive a welcome fortnightly payments boost.
How much extra is received by individuals and couples in this cohort – a subset of the approximately 2.5 million people who are paid an age pension benefit – will vary and depend on their total level of financial assets.
The International Monetary Fund (IMF) grabbed headlines this month on releasing its latest World Economic Outlook report, downgrading its global growth forecasts to the lowest levels since the 2008-09 financial crisis.
Pointing to heightened economic and political uncertainty, particularly in China and the United States, the IMF cut its 2019 global growth forecast by 0.3 per cent to 3 per cent, and its 2020 estimate by 0.2 per cent to 3.4 per cent.
Buy low and sell high is the mantra of many a seasoned investor regardless of the asset class. Just stick to this investment strategy and you will never go wrong – right?
If only investing were that simple.
Short of the ability to look into the future and timing the market, how do you determine what is low and what is classified as high?
Although keeping abreast of market commentary is always useful, particularly in helping to develop your investment acumen, it is unlikely to deliver guaranteed investment success.
So, what can you do to give yourself the best chance for investment success?
Of all the decisions we make, investments ought to be the most rational. We should be able to whip off our rose-coloured glasses, replace them with green eyeshades and choose the lowest-cost investments with the highest-expected returns to create a diversified portfolio.
However, as with so many things in life, our emotions often get in the way of this rational approach. We buy shares in a company solely because a friend recommended it. Or, we innately believe the higher-priced product is always better, even though we have no evidence to back this gut feeling.
A great place to keep up-to-date with the ‘bigger picture’.
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