John Cameron's personal blog

Serious discussion about your financial position now - and in the future.

Black Swan Event Financial Planning - Proud to be a sponsor of the Mosman Park Bowling Club

 

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Was Trump’s Win A Black Swan Event?

“Black Swans and Stunned Mullets - Two Species Often Found Together”

Black Swan Events occur when something that was totally unforeseen, or at least very unlikely, happens.

On that basis, if you had listened to the experts, the win by Trump, certainly qualifies. The airwaves were full of forecasts of a Clinton win. The smug certainty of all the pollsters and forecasters before the election is now matched only by their “stunned mullet” demeanour since the election. Talk about egg on face, or any of dozens of other metaphors, but the message is clear – the experts often get it wrong – way wrong.

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What Is It With Banks And Their Culture?

ASIC has recently penalised banks (again) for failures in their financial planning divisions.

This time it was for charging customers “advice fees”, which entitled the customers to annual reviews. However, no reviews were carried out.

Whatever happened to good old fashioned service? you might ask.

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5 Things To Think About When Choosing Between Active And Passive Investment.

One of the most hotly debated areas in investment is whether you should invest in actively managed funds, or index funds. As is often the case, these debates often generate much more heat than light.

The difference is that actively managed funds seek to select assets (let’s focus on shares, but the same principle applies to other asset classes such as bonds), whereas index funds simply look to track a given index and buy shares to mirror the index, without worrying about the merits of any particular company.

Let’s look at the logic.

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On Dividends, Compounding, and Time Periods.

Einstein reportedly said he regarded compound interest as the eighth wonder of the world.

Some facts and figures that I recently saw in The Financial Times, well illustrate why he might have said that. 

First, let’s look at some of the figures, then turn to what they might mean for Mum and Dad investors.

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