Index Investing using a model portfolio of ETF’s and term deposits.
Use the Model portfolios from Financial Choice to give you low fees, access to your money immediately and full transparency.
The Investment Secret From the World’s best Investor.
The world’s best every investor Warren Buffet has a very simple investment recommendation when it comes to long term investing. From his bestselling book, ‘The Snowball’ comes this simple philosophy.
“Stocks are the thing to own over time. Productivity will increase and stocks will increase with it. There are only a few things you can do wrong. One is to buy at the wrong time and the other is to sell at the wrong time. Paying high fees is the other way to get killed. The best way to avoid both of these is to buy a low cost index fund and buy it over time. Be greedy when others are fearful and fearful when others are greedy, but don’t think you can outsmart the market. Very few people should be active investors”.(Warren Buffet The Snowball”)
Why you should rethink whether you should appoint a fund manager to manage your money.
Between 2001 and 2011 Australians would have been better off putting their superannuation solely into the Australian shares index rather than investing in all balanced superannuation funds managed by fund managers.
A recent report from industry analyst Super Ratings show balanced superannuation funds, in which 80 per cent of workers have their retirement savings, returned an average 4.51 per cent a year over the past 10 years, after fees and tax, which is less than 2 per cent ahead of prevailing inflation.
In the same period, super funds invested solely in Australian shares index returned 6.63 per cent.
The World Has Changed The Way It Invests.
The global financial crisis has quite dramatically highlighted the attraction of exchange-traded funds as frightened share market investors scramble for safe havens. In the US and Europe, ETFs have seen big surges in buying activity this year and even in Australia, where they are far less well-known, business has been accelerating.
An ETF is in essence an index fund containing a basket of securities that is listed on a stock exchange and can be readily bought and sold like any other equity. As with other equities, it is priced continually throughout the trading day. Because it is an index fund the management fees are low. In addition, a mechanism that allows shares in the fund to be issued or redeemed in accordance with demand means that the stock market price of the fund stays tightly aligned with the underlying value of the basket of shares that comprise the fund.