Plan 2 Prosper

If you can do it consistently and reliably one would assume the answer would be a resounding, Yes. However, there are only a few people in the world that can consistently time entry into and exit out of the markets in volatile times, and I don’t profess to be one of them.

If you can’t achieve any reasonable certainty, another option would be to take your best guess … obviously this is not investing but speculating or gambling. Personally, I’d prefer not to take guesses with hard earned money that is not mine so instead I’d rather rely on sound fundamentals and spend more time in the markets than attempt to time when to get in. (more…)

When the budget doesn’t seem to be going as far as it used to it is human nature to try and stretch it further by reducing those expenses which aren’t providing value for money.

Insurance products when percieved purely as an expense are often the first budget item cancelled.

However, the risk of disability is great. (more…)

Many people of us are betting with our mortgages when it comes to interest rate rises. An article I read recently (apologise for not recalling where) indicated that fixed rate loan demand for a major mortgage product provider was falling to levels not seen in the last seven years – most were betting and opting for variable rates rather than fixed. What is happening to interest rates is beyond the control of most mere mortals. The June quarter inflation rates due out around July 23 will provide some good indicators, for those attempting to predict what is likley to occur (ANZ is predicting two more 0.25 % rate rises over the remainder of 2008).

Good general advice to all is to review your household budgets and your capacity to make extra repayments. (more…)

As part of the continual review of investment strategies employed for our clients, we are pleased to announce the following changes to MLC’s Australian Share Strategy.

A recent inclusion in June of Northward Capital into the manager allocation of MLC’s Australian Share Strategy will impact the following MLC funds:

• Australian share strategy within the Horizon series (2-7)
• Long-Term Absolute Return Portfolio (LTAR)
• MLC Australian Share Fund.

Northward Capital will represent 5 per cent of the manager allocation and to facilitate their entry to the strategy, weightings of existing managers have been changed. Northward Capital focus on identifying miss-priced companies with sustainable earnings growth, accelerating cash flows and a rising return on equity. Northward Capital will hold approximately 30-50 stocks in the portfolio for MLC. (more…)