Central banks have set us for an epic fail. The use of low interest rates and printing money to buy financial assets has taken us to a point from which there is only one outcome.
Indebted households demand more income to maintain the living standard they believe they’re entitled to. Sorry. That’s not how it works. Lower your sights. Borrow less.
The ‘tied sales force’ business model is a breeding ground for conflicts of interest. Does the planner work for the client or for the institution?
While the official retirement age might be 67, we should mirror-reverse those numbers and expect the unofficial number to be 76.
This leads me to the broken model that’s going to affect you more than any other…the investment industry’s financial planning software.
They have been to the industry super fund financial planner and been given the thumbs up on their retirement plan.
Personally I think the multiple on retirement income should be much higher, as the Great Credit Contraction could shrink income returns even lower...
It’s a hot topic in the mainstream media right now. Hardly a day goes by without SMSFs being implicated in the Sydney & Melbourne property bubble.
The theory is, ‘Surely with this much money being added to the system, higher inflation must soon appear on the horizon?’
All financial markets — except cash and term deposits — will get caught in the crossfire. Shares, property, precious metals and fixed interest will be casualties.