The potential loss of gains by ‘guessing’

This paper focuses on the effect on returns caused by trying to time markets. The theory behind this is that we tend to ‘think’ we have the skill to time markets, although the decision is often driven by fear or greed to be invested or not. Research suggests that we do not have this skill of foresight, and nobody, not even Mr Warren Buffet, could convincingly attest to this. The…

The benefits of increasing offshore exposure in post-retirement

One of the most significant once-off life events a person will ever experience is retirement.  Therefore a large portion of an individual’s working life is committed towards preparing for this occurrence, as one does not get a second chance at it.  This transition from actively earning an income to passively generating an income while in retirement is so important that an entire profession (financial adviser) and industry (financial services) is…

The value of RAs… Include them in ‘Plan A’ for every client

Question around the value of Retirement Annuities Q(RAs)  within  long  term  financial  planning  are frequently raised. The apparently simple response is complicated  by  constantly  changing  regulation,  most notably the Income Tax Act. Over time I have witnessed and participated in countless debates – and read many articles – on the merits of RAs. The topic attracts controversy with viewpoints often varying according to which side of the fence one sits…