Traditional economic theory assumes that when making decisions people act rationally to maximise their benefit. However, behavioural economics challenges this notion by demonstrating that human decision-making is frequently irrational and influenced by a variety of cognitive, social, and emotional factors that we are often not conscious of. One of the key concepts in behavioural economics [...]
Direct ownership of an investment whether real estate, shares or fixed income assets is appealing for many investors. It cuts out managers and advisers and gives the investor a greater feeling of responsibility over their assets and potential earnings. This added control comes at a price. Real estate, shares, and fixed income instruments are all [...]
Australians have amassed almost $3.5 trillion in Superannuation savings. This represents one of the largest retirement pools in the OECD. Quite an incredible achievement. However, those retirement savings are by no means distributed equally. Small business owners are one group that has disturbingly low rates of Super savings. About 23% of small business owners have [...]
Together with Super, your home is one the most tax effective investments you can make. While the property market has softened somewhat as interest rates have risen, if you have been lucky enough to own your own home over the past 20-30 years, it has likely been a significant driver of your wealth [...]
When your fixed rate expires, your loan will most likely revert to your lender’s standard variable rate, which is often much higher than competitive rates in the market. To avoid stress when your fixed rate expires, here are some tips to help: Have a look at your budget and start saving a buffer [...]
Korff Wealth’s Top Tips for Reducing Mortgage Stress With interest rates on the move, do you still have a competitive home loan rate? Your current lender will not tell you if a competitor has a better rate! As mortgage brokers, our job is to help you ensure that you are on the best interest [...]
The Value of Choosing the Right Financial Advisor Lawyers have a saying: “A lawyer who advises himself, has a fool for a client”. Lawyers recognise that no matter how smart they are, they cannot effectively separate themselves from the emotion and bias that accompanies personal matters. Good business managers apply the same logic. That [...]
The team at Korff Wealth would like to wish our clients, families and friends a happy, healthy and prosperous 2023! Last year was certainly a challenging year for many reasons. As investors, we saw almost 20% wiped off global equities and bond markets. Thankfully, due to quality asset selection, a high level of diversification [...]
With the Cash Rate jumping 2.5% since April, owners of assets are certainly starting to feel the pain in their balance sheets as valuations adjust. Those using leverage (debt) are also feeling it in their cashflows, as the cost of servicing increases. Although, this is somewhat ameliorated by inflation eroding the [...]
Welcome to edition #2 of our quarterly newsletters. As we officially entered bear market territory during the quarter, inflation and interest rates have continued to dominate debate among the crystal ball gazers. Is inflation here for longer? Possibly. Will interest rate rises cause a recession? Probably in the US, possibly in Australia, [...]
