In this weeks video we look at what is in store for the #federalbudet , the current market conditions and #allordinaries and our book of the week is not #theaupersecret or #thetruthaboutmoney but The Boy the mole the fox and the horse.
Hi and welcome to today’s update!
Now today is very exciting, tonight is the federal budget. I am sure you will all be glued to your TVs
tonight at 7:30pm. There will be announcements around healthcare, pandemic budget, but there
could always be a few surprises around super and tax rates.
We are going to run a webinar on Friday discussing the budget, which you are invited to attend. If
you cannot make it this Friday, it will be recorded, and we will send that around for you to watch
when you have the time.
Now, a question I have been receiving a lot this week are people asking me “what has the market
been doing? It keeps getting higher! What should my next move be?”
A way to look at this and digest it is to look at it in a long-term timeframe. So, if you are investing
now and your time frame is in the next one year, across the next year the market may continue to
get higher, but it also may very well come down. So, if your time frame is only a year, then this
uncertainty would affect you and you should be worried about that.
But for those of you watching this, hopefully your investor time frame is a lot longer, extending all
the way to your life expectancy. That hopefully gives you 10, 20, 30+ years of investing. This means
that whatever is happening in today’s market should not be of too much of a concern for you.
To expand on this, if we move forward and let’s assume the market has a return of 5, 6, 7, 8 percent
over the next 10 years, the all ordinaries will be around 16, 17 thousand in 10 years’ time. Currently
it sits at around 7,500. As you can see, the returns you would receive would easily make up for a
small loss you have made today.
The point being made here is that unless you have a really short timeframe, don’t worry too much
about what is happening in the day-to-day markets, and keep your perspective on the long-term.
Last but not least is of course the book of the week! – now I have been reading my children my book
of course, but they are a bit bored of that. Another really good book is called ‘the truth about
money’ by Ric Edelman. He has a great podcast and knows what he is talking about, but my kids
don’t like that one either.
What I have been reading to my daughter is ‘The boy, the mole, the fox and the horse’. I highly
recommend this if you have grandchildren, it’s a fantastic book by Charlie Mackesy. It’s a fantastic
read which I really enjoyed.
As always thank you for listening in and hopefully I will see you Friday.