(Feedsy Exclusive)

Share market volatility is a natural and inevitable aspect of investing. 

While market fluctuations can cause anxiety among investors, attempting to predict short-term market movements, known as “timing the market,” often leads to missed opportunities and poor financial outcomes. Instead, adopting a disciplined strategy of “time in the market” tends to provide superior long-term results. 

This approach emphasises maintaining investments over extended periods, allowing investors to benefit from compounded growth, dividend reinvestments, and long-term market trends.

Historically, markets have shown a consistent upward trajectory over the long term, despite periods of volatility. Attempting to jump in and out of investments to avoid short-term declines can result in selling at market lows and buying back at higher prices, eroding overall returns. Studies repeatedly show that investors who remain consistently invested, even through downturns, generally achieve better outcomes compared to those attempting to anticipate market shifts.

One key reason time in the market is advantageous is the power of compounding returns. Even modest annual returns can grow substantially over time when dividends and earnings are reinvested, allowing growth on growth. Additionally, staying invested ensures participation in the best performing days of the market, which often occur unpredictably and closely follow market downturns. Missing even a few of these best days significantly diminishes long-term investment returns.

Furthermore, emotional decision-making driven by fear or panic during volatility often undermines long-term investment plans. Investors frequently sell during downturns to avoid further losses, only to buy back in after markets have already recovered, locking in losses and missing gains.

Here are ten practical tips to help investors manage and cope with market volatility:

1. Stay calm and rational: Avoid making impulsive decisions driven by panic or fear.
2. Maintain a long-term perspective: Remember your overall investment goals rather than short-term fluctuations.
3. Diversify your portfolio: Spreading investments across different asset classes helps mitigate risk.
4. Regularly review your investment strategy: Ensure your portfolio aligns with your long-term objectives and risk tolerance.
5. Invest regularly: Regular contributions, such as dollar-cost averaging, smooth out entry prices over time.
6. Avoid frequent market checking: Constantly watching market movements can heighten stress and lead to reactionary decisions.
7. Keep cash reserves: Maintaining sufficient liquidity reduces pressure to sell investments during downturns.
8. Focus on fundamentals: Invest in companies with strong business models, stable earnings, and solid growth potential.
9. Understand risk tolerance: Clearly knowing how much volatility you can handle prevents overexposure to riskier assets.
10. Seek professional advice: Regular consultations with a qualified financial adviser can provide guidance tailored to your personal circumstances, helping you navigate volatility effectively.

Successful investing involves patience, discipline, and a commitment to a well-thought-out investment plan. By embracing market volatility as a normal aspect of investing and focusing on the market’s long-term potential, investors can improve their financial outcomes and achieve their investment objectives.

If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.

This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.

Fake news and 'deepfake' videos of celebrities and public figures appearing to promote online investment platforms are increasing on social media.

'Deepfakes' are lifelike impersonations of real people, created by artificial intelligence (AI).

Scammers create ads and fake news articles to make you believe the celebrities actually use these scam investment platforms.

The platforms claim to use AI and other technologies like quantum computing to create high profits for investors.

How to spot the scam

• You see an article or video on social media about a celebrity or public figure who appears to promote an investment platform they say they've made a lot of money on.
• These trading platforms include the names ‘Quantum AI’, ‘Immediate Edge’, ‘Immediate Connect’, ‘Immediate X3’, and ‘Quantum Trade Wave’.

How the scam works

• Scammers use social media ads, ‘deepfake’ videos and fake news articles ('clickbait') about celebrities and public figures claiming to make big profits from online trading platforms.
• Links to these scam platforms take you to a website where you're asked to sign up to the platform.
• After you submit the form, the scammer (pretending to be an account manager) calls you, telling you to pay around $250 to access the platform.
• They tell you to download a cryptocurrency app so you can 'invest' more.
• Using an online dashboard that appears to show small profits, scammers persuade you to invest more. They may let you take out a small amount of money to gain your trust.
• When you try to withdraw your funds, they demand withdrawal fees or mention tax issues to access your money. You may be locked out of your account. You won't get your money back.

Protect yourself

STOP – Don’t give personal information or act on investment advice you have come across on social media. Don’t feel pressured to invest. If you have any doubts, stop communicating with them. For more information about reducing the risk of investment scams, visit ASIC's Moneysmart website.

THINK – Ask yourself if you really know what you are investing in? Scammers can create fake news to make it seem legitimate. Do an internet search to see if it’s an online investment trading platform scam.

PROTECT – Act quickly if something feels wrong. If you have shared financial information or transferred money, contact your bank immediately. Help others by reporting scams to Scamwatch.

If you've been affected

If you think you're involved in an investment scam or you've experienced cybercrime and lost money online, contact your bank immediately.

For crisis support to help with emotional distress about scams, contact Lifeline on 13 11 14 or use their online chat.

Beyond Blue also provides support for anxiety and depression: call them on 1300 224 636. You can also chat online through their website.

Help others by making a report to Scamwatch. You can make your report without sharing your name.

Who is the National Anti-Scam Centre?

We're a specialised team within the Australian Competition and Consumer Commission that launched on 1 July 2023.

Our aim is to make Australia a harder target for scammers.

For more information about how to avoid or report a scam, visit the Scamwatch website.

(Feedsy Exclusive)

Being named the executor of an estate is both an honour and a burden. Entrusted with this pivotal role, one carries out the last wishes of a loved one, but the path is often strewn with complexities and unforeseen challenges.

Navigating the Executor’s Terrain

At first glance, the executor’s role might seem straightforward. However, in practice, it’s a demanding role that requires interaction with a myriad of entities, such as banks, real estate professionals, utility companies, the deceased’s superannuation fund, and the taxation office.

Furthermore, an executor’s duties are vast and varied. They encompass everything from overseeing funeral procedures and securing the death certificate to notifying friends and family about the loss. They’re also tasked with locating the will, identifying beneficiaries, gathering a multitude of documents, settling estate debts, documenting estate assets, and initiating insurance and superannuation claims.

Yet, the process isn’t without potential pitfalls:

• Executors face personal financial risks. Any oversight during the estate’s administration might lead to personal financial liabilities.
• They often encounter hitches in procuring superannuation death benefits and in coordinating with fund trustees.
• Executors bear responsibility for any losses stemming from estate asset mismanagement. This can include failure in securing and judiciously investing assets, or lapses in notifying creditors, settling the deceased’s obligations, and recouping debts owed to the deceased.
• They can incur financial penalties for unduly delaying estate administration or for hasty distributions.

Guidance for a Smoother Transition

For those in the process of drafting a will and designating an executor, a few proactive steps can immensely assist in the estate’s efficient management:

• Collaborate with a knowledgeable probate lawyer or solicitor specialising in wills and estate management. Their insights, especially regarding local family and inheritance laws, can be invaluable.
• Given life’s unpredictability, regular updates to your will, insurance policies, and superannuation death benefit details are paramount.
• It’s crucial to note that superannuation doesn’t fall within your estate and isn’t addressed in your will. Still, you can specify your wishes and arrangements concerning your super death benefit nominations in your will.
• Seek guidance from your financial advisor and super fund to establish death nominations, thereby streamlining benefit acquisitions for beneficiaries.
• If feasible, contemplate liquidating your entire death benefit from the super fund while still alive. This proactive step allows for immediate distribution based on your directives or deposits into a bank account, providing easy access for the executor upon your passing.

If you’re ever nominated as an executor by a loved one, it’s prudent to discuss these considerations with the testator (the person who drafted the will). Collaboration with their legal advisor (and financial consultant if available) is also advisable to ensure a comprehensive understanding of the responsibilities and challenges ahead.

In summation, the role of an executor is a multifaceted one, rife with both an honor and intricate challenges. However, with a well-charted roadmap and diligent preparation, the process can be streamlined, ensuring a smoother transition for all involved.

If this article has inspired you to think about your own unique situation and, more importantly, what you and your family are going through right now, please contact your advice professional.

This information does not take into account the objectives, financial situation or needs of any person. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation or needs.