1973 saw the publication of one of the most famous books on investing ever written. A Random Walk Down Wall Street by the Princeton University economist Burton Malkiel was initially panned by the critics, but it has gone on to sell more than two million copies worldwide.
The number of books giving financial advice has taken off in recent years. A few of them, such as Robert Kiyosaki’s Rich Dad, Poor Dad have topped best seller lists. However, very few, if any, of these books have been written by economists. And recent research suggests why.
Investors crave certainty, and, in times of uncertainty, they seek out financial advisers who can give them answers. Will markets fall further? Will there be a global recession? What will the ECB decide to do about interest rates at its next meeting?
We seem to have had more than our fair share of market volatility in recent years. This year’s turbulence on equity and bond markets has left many investors feeling queasy. But we’ve had it much worse.
When retirees are considering options for their accumulated pension fund at retirement, having taken a tax-free lump sum, there are broadly speaking two options. The first option is to use the fund to purchase an annuity – this in effect exchanges the fund for a guaranteed level of income payable for life. The second option is to keep the funds invested in an Approved Retirement Fund (ARF), which can benefit from further tax- free growth and flexibility of drawdown.
From January, first-time buyers will be allowed to borrow up to 4 times their household income.