What's on your mind?: Shani's top articles from February
Morningstar’s Director, Investment Specialist focused on answering reader and listener questions in February.
This month, I focused on questions I've received from readers or listeners to our Investing Compass podcast.
One of the questions was a recurring one. Many younger investors do not believe they can follow a goals-based strategy because many of the traditional goals that we have are out of reach. When you're only able to save $100 a week, a deposit for a home or an overseas holiday seems like an exhausting thought. My Future Focus article runs through a framework that can reveal goals that are more achievable, but still fulfilling for individuals.
Managed funds make up a large part of my investments. One podcast listener wanted to know why they were one of my investments of choice. I covered it in my Future Focus column.
I also received a question about the Stop Loss function that is available for investors through their broker. It is a simple function - it sells at a price that you choose. It can have detrimental consequences. The article I wrote answers the reader's questions about how it functions, but also if there are ways to use it strategically.
A podcast listener posed a question about setting aside a small part of your portfolio for making 'bets'. The theory behind this is that having that part of the portfolio would mean you would be more sensible with the rest and improving your overall behaviour towards your investments. This theory reminds me of Core/Satellite. I explore the Core/Satellite strategy that is beloved by advisers and how I use a variation of it for my portfolio.
One more question from an Investing Compass listener. She sent through an email that looked at the opportunity cost of private school education. She has a preference for private education for her children, and wanted to understand the strategies to soften the blow of ever-increasing private school fees, and what the alternative could be.
Outside of questions, I covered insights from our Behavioural Insights team that have done research on the key to being happy with your finances.
Investing Compass episodes
Chart of the week
Chart of the week: The top trades from SMSFs in 2024: The Chart of the Week looks at what stocks SMSFs bought and sold last year.
Chart of the week: Why small caps could shine bright in 2025: The Chart of the Week is a reason why small caps may shine bright in 2025
