Information You won’t get from Unlicensed Accountants #42
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.
Cognitive Bias that can be detrimental to Investment Performance – Recency Bias.
Investors affected by recency bias often make investment decisions based on recent market returns, rather than conducting a considered and detailed analysis of the investment opportunity. This can often result in investors 'buying high' and 'selling low' and is a phenomenon more common among inexperienced investors.
As such, investors should first take the time to understand what the purpose of the investment is and question whether the choice before them is the best option available to achieve their objective or whether it a fear response to missing out (AKA FOMO).
Forming an investment strategy and adopting a regular review and rebalance process can help to create discipline and reduce the noise generated by social and traditional media.
“It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change." – Charles Darwin.