Investing Money: January 2020

Tuesday, January 28, 2020

[Smart Investing] Advice for my twenty-something self

Investments and personal finance insights from Vanguard Australia

29 January 2020

Hi everyone,

I hope you most of you liked the new look of Vanguard's Smart Investing newsletter. The changes that we have made for 2020 are based on your survey responses - we have created a mobile-friendly version of the newsletter which should be easier to read on your devices. Starting this week, we will be introducing a "readers question" segment where we respond to your questions on a regular basis. Feel free to send us questions (obviously with the caveat that our advice is general in nature and that you should seek your own professional advice before making any decisions) and we will answer them.

The first of our three articles in this week's edition of Smart Investing is a response to a reader asking what financial advice I would give to my 20-year-old self. The second article looks at trends in the global ETF market over the last quarter of 2019 and the third article focuses on whether the much talked about safe withdrawal rate of 4 percent in today's low interest rates world is still safe. I hope you enjoy the articles.

Feel free to email us with your feedback on Smart Investing, it would be great to hear your thoughts on the changes we've made.

Until next week.

Robin Bowerman
Head of Corporate Affairs
Vanguard Australia

Advice for my twenty-something self

By Robin Bowerman

Our twenties are usually a period of substantial growth and for better or for worse, a time when we come face-to-face with new financial responsibilities. Here is some general financial advice I'd give to my twenty-something self.

ETFs surge continues a strategic shift for investors

By Tony Kaye

It was an enormous year for ETFs around the world, with an additional $835 billion of inflows taking the total value of assets under management in this diverse products segment to more than $9 trillion. In Australia, the growth numbers were no less impressive.

The safe withdrawal rate

By Robin Bowerman

The safe withdrawal rate. It's an alluring concept created in the 90s. An amount you can spend each year and yet be sure you'll never run out of money in retirement. But does the 4 per cent rule still apply today?

Vanguard in the news

Investment Leadership Awards finalists revealed

Financial Standard | Jamie Williamson | 22 Jan 2020

The shortlist for the Financial Standard Investment Leadership Awards 2020 has been unveiled, recognising outstanding investment talent across major asset classes. This year sees BlackRock Investment Management, Fidante Partners, Macquarie Investment Management, UBS Asset Management and Vanguard Investments vie for the title of Investment Manager of the Year.

To read more, please visit the Financial Standard website.

Please note the link above will show a copy of the article (where freely available), or the publisher's website if a subscription is required.

In case you missed it

What's right for you - an ETF or a managed fund?

By Robin Bowerman

Once you have decided you are ready to invest and have settled on the right asset allocation to suit your objectives, your next question might be whether to invest in an exchange-traded fund (ETF) or an unlisted managed fund.

Asset allocation as you age

Age is a pretty powerful filter for investment decision-making. Financial advisers sometimes say that if they had to build a financial plan based only on one piece of information that your age would be that critical data point.

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Tuesday, January 21, 2020

[Smart Investing] The paradoxical decades

Investments and personal finance insights from Vanguard Australia

22 January 2020

Happy new year to one and all.

The sombre start to the year with the bushfire crisis serves as a salutary reminder that things do not always go to plan - sometimes dramatically. It also underscores the value of having a long-term financial plan. At Vanguard we talk a lot about the need for a diversified portfolio when it comes to financial planning. But diversification goes beyond merely ensuring you're investing in different asset classes. It means putting together a plan that isn't just focussed on your retirement path but also on your journey towards retirement. It's a plan that allows for the unexpected and can help mitigate some of the risks and cushion the impact of such events, whether through insurance or some other form of a safety net, fall back plan. Because in life not everything goes neatly to plan and unforeseen events can and will blow us off course. Having a solid plan can help us get back on track.

I'd like to thank those who took the time to fill in the recent Smart Investing reader survey. The feedback provided allowed us to learn a bit more about you and understand how we can continue to better deliver on our commitment to impart the knowledge we have and give investors the best chance at investment success. We will be introducing several new improvements to the newsletter in the coming weeks and I look forward to telling you more about them.

Robin Bowerman
Head of Corporate Affairs
Vanguard Australia

The paradoxical decades

By Robin Bowerman

Despite unprecedented levels of political and economic uncertainty, the 2010s delivered the best 10-year period returns over multiple asset classes in recent history.

Some SMSFs remain overloaded with cash

By Tony Kaye

How much cash is too much? It's a question that many self-managed superannuation fund trustees should be asking themselves in an investment environment where the highest term deposit yields on offer is just 1.75 per cent.

Super returns and the importance of diversification

By Tony Kaye

It was a strong investment year for managed superannuation funds generally and, likewise, should have been for self-managed superannuation fund trustees.

Vanguard in the news

Fixed income ETFs prosper despite low rates

Financial Standard | Harrison Worley | 14 Jan 2020

According to new figures released by the Australian Securities Exchange and Vanguard, investors are doubling down on their commitment to exchange traded funds, with the sector registering inflows of $13.7 billion across 2019, well over the $8 billion it turned in during 2018.The latest figures show ETF assets are growing at a compound annual growth rate of more than 23% over the past five years, which Vanguard head of ETF capital markets for Asia Pacific Minh Tieu put down to more investors jumping on board with ETFs than ever before.

To read more, please visit the Financial Standard website.

Please note the link above will show a copy of the article (where freely available), or the publisher's website if a subscription is required.