Averages are useful, but often we can do better by using more information than just the average. This applies to financial advice as much as any other discipline. This article follows on from the previous two articles: Financial Projections, getting [...]
In the first article we looked at how taking a simple average return derived from historical data and using that for projections of the long-term future will yield a higher result than would be expected based on that historical data. [...]
If you are a financial adviser, you need to understand the difference between how average rates of return can be represented. One of the key differences is simple vs compound averages (also known as arithmetic v geometric averages). In this [...]
The aim of Investfit's webinar series is to provide financial advisers with educational content on technical aspects of modelling financial projections and optimising asset allocation construction for clients. This Webinar discusses the market volatility measure that should be used when [...]
The Financial System Inquiry Final Report was released in 2014 and raised the notion of a Comprehensive Income Product for Retirement (“CIPR”) to be pre-selected by super fund trustees, but only started after the member has chosen to go ahead [...]
EY’s 2016 Global Consumer Banking Survey has some important findings for banks in relation to financial advice. The survey of 55,000 bank customers found that unless banks change the way they deal with their customers they will find it difficult [...]
In the previous post we discussed why digital financial advice, often referred to as “Robo Advice”, is here to stay and how it can benefit both the unadvised market (those who don’t see a financial adviser) and the advised market [...]
The 30th of August saw the release by ASIC of RG255 on digital financial advice. In their media release ASIC says: “ASIC supports the development of a healthy and robust digital advice market. In an environment where only [...]
In previous blogs we have discussed risk and what it really means. To recap, risk is the chance of something going wrong, which is the same as saying the chance of failing to meet our goals. In relation to our [...]
The current approach to financial advice is to put the client into a category, based on an assessment of their "risk profile". Each category has assigned to it an investment strategy according to level of "risk"; for example a "conservative" [...]
