In a popular children’s story, the young hero pins all his hopes on finding one of a handful of ‘golden tickets’ hidden among millions of candy bars. It seems many people approach investing the same way.
The notion that the path to long-term wealth is in locating secret and previously undiscovered treasures in the global marketplace of securities is one that regularly features in media and market commentary.
Economic Overview
Once again, the investment strategy of maintaining discipline and holding for the long term won out over reacting to media forecasts and predictions from hyperventilating partisans. In January 2017 CNBC suggested Wall Street was the most bearish they’d been in 12 years, as it turned out, the global economy continued to strengthen as share markets posted solid returns on low volatility.
If someone were to ask you about your goals, how would you answer? Would you be vague and stumble in your response? Or would you have a clearly articulated answer?
Once you hit your forties, you usually start to take your own and your family’s financial future more seriously. You may be more settled in your career and at, or near, your earnings peak. In recent years the cost of housing and general living expenses have risen faster than wages, leaving many households spending all or most of what they earn. This can make it difficult to achieve financial objectives, such as reducing your mortgage and saving for retirement.
I recently read an article by NAB about the changing measures of SUCCESS in Australia. It stated that “Australians are no longer measuring success by money, property or a well paid job. Overwhelmingly, being happy, having good family relationships, and personal wellbeing are the barometers of success in Australia”.