Information You won’t get from Unlicensed Accountants #41
Along with this raft of legislative change, the Australian Securities and Investments Commission (ASIC) has also introduced new licensing requirements for accountants who work with and advise Self Managed Superannuation Fund (SMSF) Trustees. Only approx. 10% of accountants have complied with these changes to date.
As such if you, as many, consider your accountant would be your 1st port of call for Financial Advice, they will likely advise you, they are unable to provide the information you require & should consult a qualified Financial Adviser / Planner.
This is general advice only and you should seek expert financial advice from a qualified financial adviser before acting on any of the information covered in these topics.
Emotional Bias that can be detrimental to Investment Performance – Status Quo Bias.
When faced with a multitude of options, investors will often stick to the status quo. We often see this occur where investors have made large gains or losses in a particular holding and become resistant to change. This is also common for executives or employees that have built up large holdings in their own company’s stock.
The main problem with Status Quo syndrome is it often leads to a lack of diversification which in turn could lead to poor investment performance outcome. As such, investors should seek to put together an investment policy or process (much like the professionals) for their own investment portfolios and look to rebalance regularly.
“Compound interest is the greatest mathematical discovery of all time” – A. Einstein.