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 – Endowment Bias.
Investors affected by endowment bias will irrationally value assets they own higher than its market value. This is common among investors that have inherited their portfolios as well as employees that own stock in the company they work for. Often this leads to poorly diversified portfolios with high levels of stock specific risk and weaker long-term returns. As such strategies need to be considered to reduce concentration risk such as rebalancing regularly.
“You can have a master’s degree in making money, but you will end up broke if you have a PhD in spending it” – Orrin Woodward