Insight Tools 2020-01-13T03:26:50+00:00



Vanguard interactive index chart
Index investment returns
Diversification & consistency of returns
Short term vs long-term investing
Consequences Of A Short Term Focus
Long-term investing
Over 100 years of positive and negative movement
Returns of Australian shares
S&P ASX All Ords Accumulation Index

Self-Funding Installment Warrants

What are Self Funding Instalment warrants (SFI’s)? SFI’s are a simple and effective way to gain long term geared exposure to ASX listed shares while still receiving the FULL benefit of any share price movements, dividends and franking credits for a partial capital outlay (usually around 50%). SFI’s can potentially accelerate your returns (both positive and negative) using the [...]

Why Holding Cash Long Term is a Bad Idea

Last week, Warren Buffet gave an interview to the New York Times on why he was buying when everyone else was selling. Below are extracts taken from this interview; “A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly fear is now widespread, gripping even seasoned investors”. [...]

Who is the going to feed the growing population?

Opportunities in agriculture “World agriculture has entered a new, unsustainable and politically risky period”, says Joachim Von Braun, the head of the International Food Policy Research Institute (IFPRI) in WashingtonDC.* As the world population increases the pressure on its natural resources becomes greater. The economic revolution in China, India and other parts of emerging world is also seeing unprecedented [...]

When We Buy a Share We Are Buying a Part of a Business

Over time if that business is profitable it will pay dividends as well as retain money to invest in the business to grow profit in the future years. Let’s start a company named ABC with 1 share holder who tipped in $100. Therefore his share would be worth $100 and it would be backed by the cash in the [...]

What’s the Big Deal about NRAS Property?

National Rent Affordability Scheme (NRAS) Rental Properties The National Rent Affordability Scheme or NRAS is a government scheme designed to ensure that rent remains affordable for working families. It differs from the concept of “Social Housing” as the NRAS tenant can earn up to $125,960 per year as opposed to $58,292 for social housing tenants, so the focus is [...]

Understanding Floating Rate Notes

A floating rate note (FRN) is a type of bond. A borrower, typically a government or company, issues bonds to raise capital. In return, they promise to pay bond holders back in full on the bond’s maturity date. Until that date, the borrower pays regular interest payments or ‘coupons’. Bonds are commonly called ‘fixed-income investments’. But the term ‘fixed [...]

The Value of an Adviser

Updating our annual “Value of an advisor” study for 2017 seems especially relevant given the spotlight that the DOL fiduciary rule has shone on all manner of fees in recent months. Regardless if the fiduciary rule is materially changed or not during the current delay, the fact remains that fees – and the value clients derive from them – [...]

The Risk of a Bond Market Crash

Ever seen a crash in the Tour de France?  The pro cyclist calls it a shit mixer. There is no greater shit mixer in financial markets than when bond markets correct. Why, because, bond markets are the stable glue that holds commerce together, bonds are debt instruments and debt instruments are secured by assets. What could possibly go wrong? [...]

The Jim Cramer Problem

Market pundits, there out there every year, predicting, this market up, that market down, this stock will do well and that stock is in trouble. In the main most of these pundits have less accuracy of an Anzac day two up game. That is to say they are right at best 50% of the time. As a case study [...]

Pension changes will impact retirement adequacy

Impending changes to the aged pension asset test thresholds will have a significant impact on the number of couples able to achieve a comfortable retirement, according to new research from Willis Towers Watson (WTW). The joint research from WTW and The University of Melbourne explores how retirement income adequacy has progressed in Australia. It finds that under the old [...]

How discount SMSF players are clipping the ticket

The self­ managed super fund industry is being undermined by low­ cost platform providers charging hefty commissions and enjoying cosy relationships with the banks, writes the Australian Financial Review's James Frost. A new wave of entrepreneurs is keen to carve out a slice from Australia's $550 billion self­managed superannuation market. John Woudstra Heavily discounted platforms for self-managed superannuation funds [...]

Life Insurance Claim story

Life Insurance Claim example...Do insurers pay? Just ask Geoff – a claimant’s story: Geoff and his adviser’s real name have not been used to protect their privacy. Geoff thought the world was at his feet as he prepared himself for retirement, until he was diagnosed with a life-threatening illness. The following is an extract from a letter we received [...]

What is TPD Insurance?

Total and permanent disability (TPD) insurance provides cover if you are totally and permanently disabled. Your insurer will define TPD as either when you: You can't work again in any occupation, or You can't work in your usual occupation TPD insurance helps cover the costs of rehabilitation, debt repayments and the future cost of living. Why do you need [...]

Do you need life insurance?

If your children, partner or other relatives depend on your income to cover the mortgage or other living expenses, then the answer is yes - you probably do want life insurance, since it will help provide for your family in the event of your death. Life insurance can pay your dependants money as a lump sum or as regular [...]

Basics of Life Insurance

Death Cover (Life Insurance) Total & Permanent Disablement (TPD) Is designed to pay a lump sum in the event of an insured‘s death. This lump sum can then be used to pay for things such as extinguishing debts, children’s education, putting in place an income stream, funeral expenses or any other purpose. For every home lost through fire, there [...]

Basics of Income Protection Insurance

An “average” individual age 25 years earning $51,235 p.a. will earn more than $3,863,184 in his or her working life, assuming 3% inflation. To protect this amount it will cost them as little as $40 per month, which would be tax deductible. This insurance cover is probably the most important for the majority of working people. Income Protection is [...]

You’re worth $5,000,000 should you protect it?

Do you protect the loss or theft of your $30,000 car? If so what is the cost of the premium to do so and how much will you get paid out? If you are a 25 year old worker who earns $75,000 a year indexed for the rest of your life then you are worth $5,000,000*. So if you [...]

Superannuation and your estate

The times in which we live allow individuals superannuation fund amounts to grow and as a result a significant percentage of the portfolio will pass through to beneficiaries upon death of the superannuation account holder. As, how do we make sure superannuation is effectively managed with the remaining Estate's assets? Binding Death-Benefit Nominations (BDBN) are essentially the Will for the [...]

Dangers of Do It Yourself Wills

The legal profession love DIY Wills and power of attorney kits because they are the gift that just keep giving, in legal fees that is. At Shartru Wealth we know this to be fact, because we have had to walk with our clients through the minefield that is, poorly considered and constructed estate planning. Its expensive and its unpleasant. So what are some of [...]

The Origins of the Sharemarket

The origins of the Australian Stock Exchange (ASX) date back to the mid-1800s when six separate exchanges were established in Australia's state capital cities of Melbourne, (1861), Sydney, (1871), Hobart, (1882), Brisbane, (1884), Adelaide, (1887) and Perth, (1889). The Australian Stock Exchange Limited was formed on 1 April 1987, through incorporation under legislation of the Australian Parliament. The formation [...]

The Origins of Bond Markets

Money plays the most important role in our lives. It has performed a terrifyingly dominant role in carving the fates of kingdoms, families, dynasties and now countries. From ancient Mesopotamia to the modern banks on Wall street, the ascent of money has been an indispensable part in the ascent of man. From the fluctuating prices of the homes we [...]

The Challenge of Our Times – Life Expectancy

One of the great achievements of the twentieth century was a dramatic rise in life expectancy. Even in the past 50 years, life expectancy has risen in most western economies. However, increased life expectancy and declining birth rates have caused many to worry about the impact of an ageing population. Frequently, we hear about ‘a demographic time bomb’ and [...]

How to Get Out of Debt

If your bills give you anxiety and your debts are getting in the way of other dreams, it may be time for you to follow a different pathway. If you and your partner are collectively in debt, they'll need to be on board as well. In a spreadsheet, list all your debts, balances, interest rates and minimum payments - [...]

Five Questions to ask your Financial Planner

Whether you earn a little or a lot, it’s beneficial to make the time to speak with a financial planner. A financial planner can help you reach your goals and maximise your savings. If you’re looking at engaging the services of a Financial Planner, here are some questions you may wish to ask. Am I able to start saving [...]

Financial Advice versus No Financial Advice

If you’re looking to invest, buy a financial product or plan for the longer term, whether or not you need financial advice will depend on a number of factors such as what product you are looking for, how complicated your finances and personal circumstances are and your short and long-term goals. What do you pay for financial advice? Many [...]

Too Much Debt?

With the Central Bank in the US starting to talk about increasing rates how does this change your current and future position? Excessive amounts of financial debt have become a common and often crippling issue for many people in recent years. Below are discussed some of major effects or consequences of having too much debt and the process by [...]

Dealing with unmanageable personal debt – settlements with creditors

This article follows on from our previous edition discussing the options available to individuals facing unmanageable personal debt (including personal guarantees for company debts). In this edition, we discuss Settlements / Compromising Debts. When an individual (Debtor) is unable to repay their debts in full and does not wish to be subject to bankruptcy, they can seek to settle [...]


Insurance. Can you get by without it?
No.1 insurance rule: it has to be right for you
How long can you go without your income?
Honesty is the best policy
You need to do your part at claim time
Your insurer is your rehab partner
Do I Need Insurance – Video Explanations
What About Super – Video Explanations
What Is Wealth Creation


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