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Make Work Optional (tm)

Professional Wealth is a
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of Money Managers Partner Solutions
AFSL No. 289573

Resources Eureka Report and other articles

Doug writes regularly for Alan Kohler's Eureka Report. Below is a selection of past newsletter and other articles which might help you with your personal investment strategy.  

How big is your caravan (how much is enough)? 

If the thought of going to work everyday is tiring on you (or your employer), then over 130 years of Australian economic history may help you decide how much is enough to live off. Even those in their 40s and 50s may have Made Work Optional although they may need to live out of a caravan - here are some benchmarks you can use to work out how big is your caravan or what you can prudently live off. 

On a related topic you may also wish to read about the about the problems with personal financial projections and tips you, your advisor (or maybe your super fund) should follow to avoid being misled. A submission to the Australian Securities and Investments Commission (ASIC) in response to their proposal to mandate that super funds provide projections to members, helps explain this more.  

Investing like the rich

The rich invest differently than most, or at least they should. For instance, they have to worry more about tax then those who can shelter a greater proportion of assets in super. Some of their tax related strategies may be relevant for you. Many wealthy investors also borrow disciplines from institutional investing, like having a family Investment Policy and operating a multi-advisory Investment Committee (read more about investing like a family office).  

Portfolio management

Like a garden, an investment portfolio from time to time needs a good pruning - in this case rebalancing. It is also important to understand where your returns came from especially after falls like in 2008 - you may wish to use a calculator populated with benchmarks to work out your performance.

Portfolio "architecture"

Most investors returns and risk taken comes from important portfolio "architecture" decisions, not the "furniture" you put in it (for example, choosing BHP to invest in instead of RIO). An important call is getting the balance between defensive and growth assets in your porfolio. Be careful retreating to the supposed security of cash, because over the long term cash may not be so secure. Here are some lessons we've learned from studying hundreds of investors portfolios.

 

 
Downloads  

PW ER 2008 returns ready reckoner - PW ER 2008 returns ready reckoner.xls (44k)
PW ER Invest like the rich - ER family office investing_wr.pdf (90k)
PW ER Cash the false security - ER cash security 0708.pdf (257k)
PW ER Keeping your portfolio in balance - ER rebalance 0608.pdf (33k)
PW ER Turek How much is enough - ER Turek How much is enough _191108.pdf (51k)
PW Taxable investing - ER taxable investing 030609.pdf (30k)
PW Equity bond mix - ER Turek bonds equities postcrash 0509.pdf (174k)
PW Portfolio bias - analysis lessons - ER Turek portfolio bias - analysis lessons.pdf (103k)