2013 marks the 45th year of my being a practicing financial adviser, and 38 as Wellings & Associates. I thought it fitting to set out one or two things I have learnt, and that may be of value to any one interested.
Firstly, financial advice is not about “creating wealth”. It is about attaining and conserving financial security, and thereby a contented life.
Secondly, the ‘secret’ of building financial security is that it’s a matter of saving first and spending what’s left. The other way round just doesn’t work.
Thirdly, invest for Income. Anything else is speculative. If the investment has a reliable, consistent, and growing income-stream, you can trust
that investment.
Superannuation is important. It is insurance - against poverty when you’re too old to work and too young to die. It shouldn’t be clever, sophisticated and complex. Keep it simple and it will work. Neglect it at your peril!
Managed funds are by far the most appropriate means of investing. Well-chosen, they are cost-effective, provide most reliable value, and they work. Australian Industrial shares offer the most reliable, consistent, and growing income-stream for long-term investment.
Income Protection Insurance is imperative - if you work for a living. So is Life Insurance, if you have Loved Ones, and/or Debts.
Finally, Australia is, without doubt, the Lucky Country. It’s a wonderful place to live, to work, and to invest! Lets be thankful.
My Best Wishes for 2013
Jack Wellings