John Cameron's personal blog

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

How Big Is Your Buffer?

One of the issues that repeatedly crops up when dealing with clients is, “How well placed are you to deal with unforeseen expenses?” 

The expenses can range from relatively minor things such as an appliance suddenly failing, a minor car accident or a leaky roof, through to things far more catastrophic – a major illness, death of your partner, loss of job, marriage breakdown or any of a whole host of other things.

I started thinking along these lines, on reading a story in the Financial Review on 1st July. The story reported a survey carried out by the US Federal Reserve, to assess the resilience of American households if some financial shock occurred.

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Elections, Brexits and forecasts – making investment decisions in the real world

In Australia today, we must all make important investment decisions for our future wellbeing.

We have an age pension system that acts as an important safety net, but our superannuation system is lump sum, with individuals being ultimately responsible for how their money is invested.

When making those decisions, it is essential (but often difficult) to try to separate the “noise” from the “information”. So, what exactly is the difference.

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Black Swan Events and Investment Waves - What do they Mean for you?

Black swan events are unexpected happenings in financial markets that have a big impact.

During my working life I have been “fortunate” to witness two of the biggest black swan events of the past 50 years – the decision of President Nixon in 1971 to cancel the convertibility of US dollars into gold at a fixed price, and the GFC.

Both had a profound effect on investment markets, with big implications on the best way to invest your savings. 

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Was The Change In The Budget Limiting The Amount In Account Based Pensions A Black Swan Event?

In the financial world, “Black Swan Events” are unforeseen changes that have a profound impact.

The term ‘black swan event” has come into regular play in the world of finance since Nazim Taleb’s 2007 book, “The Black Swan; the impact of the highly improbable.”

Recognising the existence of “Black Swan Events” is profoundly important, and has significant implications on how we all should manage financial matters. In some ways, the lessons of Black Swan Events challenges much of the conventional wisdom of financial planning.

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Pension Caps

Okay, at the risk of being beaten up by well-heeled senior citizens (It’s OK, I’m one myself) wielding folded budget papers, I will say it:

     “I support the Government’s action to limit the amount held in an allocated pension to $1.6million.”

There, I have said it.

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