Read Our Behavioural Finance Articles

November 14, 2015

The Eighth Wonder of the World

“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” ― Albert Einstein Einstein isn’t the only smart person that understands the power of compound interest. Regarded by many as the greatest investor of all time, certainly the best known, Warren Buffett has built one of the world’s greatest ever financial fortunes largely off […]

December 14, 2015

Dad, are we poor?

A few weeks ago our daughter asked if we were poor. We don’t spoil our kids, but still this question came as a bit of a surprise, as they don’t go without much either. I asked her why she thought we were poor. “Because we don’t drive a new car or live in a fancy house.” The answer was illuminating. Putting the dented ego aside […]

April 14, 2016

Aim for Simple, not Simplistic.

Simple v. Simplistic At Think Independent we aim to make clients financial affairs simple. What do we mean? Importantly, we don’t mean simplistic. We are not looking to achieve simplicity for the sake of simplicity. Rather we are looking for simplicity within the framework of our client’s goals and the available options. If we use a couple, John and Jan, who are saving for life […]

July 19, 2016

Property Pain or Gain

There are a lot of myths in investing and a big one is that you will never lose money in bricks and mortar. Well the simple answer is that not only can you, but that many people do every day. And they lose a lot. CoreLogic® RP Data’s – Pain and Gain December Quarter, 2015, report provides some hard numbers to disprove this myth by […]

August 17, 2016

Self Managed Super – Savior or Scam?

For some the option of a Self Managed Super Fund (SMSF) is the ultimate expression of control over their finances. They get to control how their capital is invested with relative freedom and save on costs at the same time. For others this is simply the story they are sold. Two recent experiences only served to reinforce earlier experiences of the misuse of SMSF’s, where […]

February 20, 2017

So you think your financial planner is an investment expert?

If you’re thinking “I hope so, that’s what I’m paying them for” I’ve got some bad news for you. It’s highly likely your financial planner/adviser is not qualified to manage investment of your money. For starters let’s clarify what I’m talking about. I’m talking about the day-to-day management of your investment portfolio (e.g. whether you sell BHP shares to fund the purchase of NAB shares […]

March 20, 2017

You paid HOW MUCH???!!!

It was suggested to me recently that I should write a book about what I know to help those looking for financial planning help. But what could I write about that hasn’t been done to death before. There are plenty of books out there talking about wealth accumulation strategies, super, investment fundamentals and strategies, risk management (insurance) and estate planning, etc. and to be honest […]

April 15, 2017

“It ain’t what you don’t know that gets you into trouble…..”

“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so. “ – Mark Twain I love Mark Twain quotes. He cuts through seemingly complex and confusing matters with such precision and gets to the heart of the issue. The above quote is another great example. Mark Twain’s quote is alluding to a tendency to believe […]

November 14, 2015