Investing Compass

The Global Financial Literacy Excellence Centre (GFLEC) at Stanford University has created a three question financial literacy quiz that has been used in more than 20 countries. Mark and Shani run through the three questions, and add a couple of their own. A message from Mark and Shani For the past five years, we’ve released a weekly podcast to arm you with the tools to invest successfully. We’ve always strived to provide independent, thoughtful analysis, backed by the work of hundreds of researchers and professionals at Morningstar. We’ve shared our journeys with you, and you’ve shared back. We’ve listened to what you’re after and created a companion for your investing journey. Invest Your Way is a book that focuses on the investor, instead of the investments. It is a guide to successful investing, with actionable insights and practical applications. The book is now available! It is also available in Audiobook format from most sellers. Purchase from Amazon or Purchase from Booktopia To submit any questions or feedback, please email mark.lamonica1@morningstar.com or leave us a voicemail to feature on the podcast here. Audio Producer and mixer: William Ton. Hosted on Acast. See acast.com/privacy for more information.

Buying a home is a financial goal for many of us. Mark and Shani go through the questions you need to ask yourself to get clear on whether it is the right decision for you. You can read the full article here. A message from Mark and Shani For the past five years, we’ve released a weekly podcast to arm you with the tools to invest successfully. We’ve always strived to provide independent, thoughtful analysis, backed by the work of hundreds of researchers and professionals at Morningstar. We’ve shared our journeys with you, and you’ve shared back. We’ve listened to what you’re after and created a companion for your investing journey. Invest Your Way is a book that focuses on the investor, instead of the investments. It is a guide to successful investing, with actionable insights and practical applications. The book is now available! It is also available in Audiobook format from most sellers. Purchase from Amazon or Purchase from Booktopia To submit any questions or feedback, please email mark.lamonica1@morningstar.com or leave us a voicemail to feature on the podcast here. Audio Producer and mixer: William Ton. Hosted on Acast. See acast.com/privacy for more information.

In this episode, we're joined by Bianca Rose, Senior Portfolio Manager at Morningstar Investment Management. Nobody has a crystal ball, but having a guideline for what asset classes are forecasted to return allows you to make an informed decision about asset allocation. Bianca runs through Morningstar Investment Management's forecast for asset classes, and how this fits into your investment strategy and portfolio construction process. A message from Mark and Shani For the past five years, we’ve released a weekly podcast to arm you with the tools to invest successfully. We’ve always strived to provide independent, thoughtful analysis, backed by the work of hundreds of researchers and professionals at Morningstar. We’ve shared our journeys with you, and you’ve shared back. We’ve listened to what you’re after and created a companion for your investing journey. Invest Your Way is a book that focuses on the investor, instead of the investments. It is a guide to successful investing, with actionable insights and practical applications. The book is now available! It is also available in Audiobook format from most sellers. Purchase from Amazon or Purchase from Booktopia To submit any questions or feedback, please email mark.lamonica1@morningstar.com or leave us a voicemail to feature on the podcast here. Audio Producer and mixer: William Ton. Hosted on Acast. See acast.com/privacy for more information.

In this episode, Mark and Shani run through 6 life changing tips that Shani delivered to high school students during a financial literacy course. Do you have any life changing tips? Send them through to mark.lamonica1@morningstar.com, or leave a comment in your podcast app. A message from Mark and Shani For the past five years, we’ve released a weekly podcast to arm you with the tools to invest successfully. We’ve always strived to provide independent, thoughtful analysis, backed by the work of hundreds of researchers and professionals at Morningstar. We’ve shared our journeys with you, and you’ve shared back. We’ve listened to what you’re after and created a companion for your investing journey. Invest Your Way is a book that focuses on the investor, instead of the investments. It is a guide to successful investing, with actionable insights and practical applications. The book is now available! Purchase from Amazon or Purchase from Booktopia To submit any questions or feedback, please email mark.lamonica1@morningstar.com or leave us a voicemail to feature on the podcast here. Audio Producer and mixer: William Ton. Hosted on Acast. See acast.com/privacy for more information.

In this episode, we discuss some key lessons for investors from Morgan Housel's book, Same As Ever. A message from Mark and Shani For the past five years, we’ve released a weekly podcast to arm you with the tools to invest successfully. We’ve always strived to provide independent, thoughtful analysis, backed by the work of hundreds of researchers and professionals at Morningstar. We’ve shared our journeys with you, and you’ve shared back. We’ve listened to what you’re after and created a companion for your investing journey. Invest Your Way is a book that focuses on the investor, instead of the investments. It is a guide to successful investing, with actionable insights and practical applications. The book is currently in presale which is an important time to build momentum. If anyone would like to support this project you can buy the book now. Thanks in advance! Purchase from Amazon or Purchase from Booktopia To submit any questions or feedback, please email mark.lamonica1@morningstar.com or leave us a voicemail to feature on the podcast here. Audio Producer and mixer: William Ton. Hosted on Acast. See acast.com/privacy for more information.

In a listener requested episode, we look at investing and balancing goals outside of super. A message from Mark and Shani For the past five years, we’ve released a weekly podcast to arm you with the tools to invest successfully. We’ve always strived to provide independent, thoughtful analysis, backed by the work of hundreds of researchers and professionals at Morningstar. We’ve shared our journeys with you, and you’ve shared back. We’ve listened to what you’re after and created a companion for your investing journey. Invest Your Way is a book that focuses on the investor, instead of the investments. It is a guide to successful investing, with actionable insights and practical applications. The book is currently in presale which is an important time to build momentum. If anyone would like to support this project you can buy the book now. Thanks in advance! Purchase from Amazon or Purchase from Booktopia To submit any questions or feedback, please email mark.lamonica1@morningstar.com or leave us a voicemail to feature on the podcast here. Audio Producer and mixer: William Ton. Hosted on Acast. See acast.com/privacy for more information.

There are some obvious red flags that investors intuitively know to steer clear of—high fees, low liquidity, poor performance. Mark and Shani run through three lesser-known red flags to look for when you are choosing an ETF. You can find the full article here. A message from Mark and Shani For the past five years, we’ve released a weekly podcast to arm you with the tools to invest successfully. We’ve always strived to provide independent, thoughtful analysis, backed by the work of hundreds of researchers and professionals at Morningstar. We’ve shared our journeys with you, and you’ve shared back. We’ve listened to what you’re after and created a companion for your investing journey. Invest Your Way is a book that focuses on the investor, instead of the investments. It is a guide to successful investing, with actionable insights and practical applications. The book is currently in presale which is an important time to build momentum. If anyone would like to support this project you can buy the book now. Thanks in advance! Purchase from Amazon or Purchase from Booktopia To submit any questions or feedback, please email mark.lamonica1@morningstar.com or leave us a voicemail to feature on the podcast here. Audio Producer and mixer: William Ton. Hosted on Acast. See acast.com/privacy for more information.

SMSFs (Self-Managed Super Funds) are increasing in popularity. SMSFs provide a lot of great features. They allow investors to access the investments they want, and in the proportion they’d like to. They allow a level of customisation to invest in asset classes that aren’t available through traditional superfunds. The popularity of SMSFs with investors – particularly investors with high balances – has caused the industry to innovate to provide another option. In this episode, Mark and Shani discuss Direct Investment options that may offer a happy middle ground for investors who want control of their portfolio, but not the headache of portfolio administration. You can find the full article here. A message from Mark and Shani For the past five years, we’ve released a weekly podcast to arm you with the tools to invest successfully. We’ve always strived to provide independent, thoughtful analysis, backed by the work of hundreds of researchers and professionals at Morningstar. We’ve shared our journeys with you, and you’ve shared back. We’ve listened to what you’re after and created a companion for your investing journey. Invest Your Way is a book that focuses on the investor, instead of the investments. It is a guide to successful investing, with actionable insights and practical applications. The book is currently in presale which is an important time to build momentum. If anyone would like to support this project you can buy the book now. Thanks in advance! Purchase from Amazon or Purchase from Booktopia To submit any questions or feedback, please email mark.lamonica1@morningstar.com or leave us a voicemail to feature on the podcast here. Audio Producer and mixer: William Ton. Hosted on Acast. See acast.com/privacy for more information.

The largest asset manager in the world, Blackrock has declared that the 60/40 portfolio should be rethought. They also believe that a 70/30 portfolio is likely to deliver 6.5% going forward. Mark and Shani take a look at the research, and what investors can realistically do to still achieve their financial goals. You can find the full article here. A message from Mark and Shani For the past five years, we’ve released a weekly podcast to arm you with the tools to invest successfully. We’ve always strived to provide independent, thoughtful analysis, backed by the work of hundreds of researchers and professionals at Morningstar. We’ve shared our journeys with you, and you’ve shared back. We’ve listened to what you’re after and created a companion for your investing journey. Invest Your Way is a book that focuses on the investor, instead of the investments. It is a guide to successful investing, with actionable insights and practical applications. The book is currently in presale which is an important time to build momentum. If anyone would like to support this project you can buy the book now. Thanks in advance! Purchase from Amazon or Purchase from Booktopia To submit any questions or feedback, please email mark.lamonica1@morningstar.com or leave us a voicemail to feature on the podcast here. Audio Producer and mixer: William Ton. Hosted on Acast. See acast.com/privacy for more information.

Two years ago Mark purchased CSL. The share has not done well in that period. Mark goes through his thoughts on CSL, whether it still meets his original thesis, and evaluates whether the share deserves a place in his portfolio. You can find the full article here. A message from Mark and Shani For the past five years, we’ve released a weekly podcast to arm you with the tools to invest successfully. We’ve always strived to provide independent, thoughtful analysis, backed by the work of hundreds of researchers and professionals at Morningstar. We’ve shared our journeys with you, and you’ve shared back. We’ve listened to what you’re after and created a companion for your investing journey. Invest Your Way is a book that focuses on the investor, instead of the investments. It is a guide to successful investing, with actionable insights and practical applications. The book is currently in presale which is an important time to build momentum. If anyone would like to support this project you can buy the book now. Thanks in advance! Purchase from Amazon or Purchase from Booktopia To submit any questions or feedback, please email mark.lamonica1@morningstar.com or leave us a voicemail to feature on the podcast here. Audio Producer and mixer: William Ton. Hosted on Acast. See acast.com/privacy for more information.

Can you lower your tax burden with a trust? Tax is a large detractor from your total return, can this structure help? Mark and Shani discuss the investors that it may suit and those that it won't. Listen to this before committing, as the establishment and maintenance fees for trusts can put you on the back foot if it doesn't suit your circumstances. You can find the full article here. A message from Mark and Shani For the past five years, we’ve released a weekly podcast to arm you with the tools to invest successfully. We’ve always strived to provide independent, thoughtful analysis, backed by the work of hundreds of researchers and professionals at Morningstar. We’ve shared our journeys with you, and you’ve shared back. We’ve listened to what you’re after and created a companion for your investing journey. Invest Your Way is a book that focuses on the investor, instead of the investments. It is a guide to successful investing, with actionable insights and practical applications. The book is currently in presale which is an important time to build momentum. If anyone would like to support this project you can buy the book now. Thanks in advance! Purchase from Amazon or Purchase from Booktopia In this week's edition of Unconventional Wisdom, Mark explores whether dividends are the answer for investors, and specifically retirees. Many members of the Morningstar community have shared that the reliable passive income provides them peace of mind. He explores how dividends can bring this for investors, but also improve living standards and provide retirement certainty by reducing longevity and sequence of returns risk. In the next instalment of Bookworm, Joseph turns to the writing of value investing legend Marty Whitman for insight. Joseph highlights Whitman's unusually consistent approach to stock selection over the decades, and looks at how ignoring short-term performance versus benchmarks could unlock a long-term investing edge. In this week's edition of Future Focus, Shani looks at new research from Vanguard regarding how you can improve your retirement income by up to 50%. Many retirees focus on overspending in retirement, but there is a real risk of underspending. Shani runs through the factors that investors need to consider to find the right balance between quality of life and longevity of retirement savings. To submit any questions or feedback, please email mark.lamonica1@morningstar.com or leave us a voicemail to feature on the podcast here. Audio Producer and mixer: William Ton. Hosted on Acast. See acast.com/privacy for more information.

Is an unrealistic portrayal of investing success holding you back? Mark and Shani talk through their investing journey and their realisation of how to reach their goals. A message from Mark and Shani: For the past five years, we’ve released a weekly podcast to arm you with the tools to invest successfully. We’ve always strived to provide independent, thoughtful analysis, backed by the work of hundreds of researchers and professionals at Morningstar. We’ve shared our journeys with you, and you’ve shared back. We’ve listened to what you’re after and created a companion for your investing journey. Invest Your Way is a book that focuses on the investor, instead of the investments. It is a guide to successful investing, with actionable insights and practical applications. The book is currently in presale which is an important time to build momentum. If anyone would like to support this project you can buy the book now. Thanks in advance! Purchase from Amazon or Purchase from Booktopia To submit any questions or feedback, please email mark.lamonica1@morningstar.com or leave us a voicemail to feature on the podcast here. Audio Producer and mixer: William Ton. Hosted on Acast. See acast.com/privacy for more information.

Financial advisers are investing in droves in Separately Managed Accounts, or SMAs. We take a look at the benefits of this investment product, and why more and more advisers are joining its church. A message from Mark and Shani: For the past five years, we’ve released a weekly podcast to arm you with the tools to invest successfully. We’ve always strived to provide independent, thoughtful analysis, backed by the work of hundreds of researchers and professionals at Morningstar. We’ve shared our journeys with you, and you’ve shared back. We’ve listened to what you’re after and created a companion for your investing journey. Invest Your Way is a book that focuses on the investor, instead of the investments. It is a guide to successful investing, with actionable insights and practical applications. The book is currently in presale which is an important time to build momentum. If anyone would like to support this project you can buy the book now. Thanks in advance! Purchase from Amazon or Purchase from Booktopia To submit any questions or feedback, please email mark.lamonica1@morningstar.com or leave us a voicemail to feature on the podcast here. Audio Producer and mixer: William Ton. Hosted on Acast. See acast.com/privacy for more information.

Many investors are wary after the collapse of First Guardian. What are the steps that you can take to make sure that your super is safe? A message from Mark and Shani: For the past five years, we’ve released a weekly podcast to arm you with the tools to invest successfully. We’ve always strived to provide independent, thoughtful analysis, backed by the work of hundreds of researchers and professionals at Morningstar. We’ve shared our journeys with you, and you’ve shared back. We’ve listened to what you’re after and created a companion for your investing journey. Invest Your Way is a book that focuses on the investor, instead of the investments. It is a guide to successful investing, with actionable insights and practical applications. The book is currently in presale which is an important time to build momentum. If anyone would like to support this project you can buy the book now. Thanks in advance! Purchase from Amazon or Purchase from Booktopia To submit any questions or feedback, please email mark.lamonica1@morningstar.com or leave us a voicemail to feature on the podcast here. Audio Producer and mixer: William Ton. Hosted on Acast. See acast.com/privacy for more information.

We take a look at how much franking credits adds to an investor's returns, and whether the obsession with the tax credits is justified. A message from Mark and Shani For the past five years, we’ve released a weekly podcast to arm you with the tools to invest successfully. We’ve always strived to provide independent, thoughtful analysis, backed by the work of hundreds of researchers and professionals at Morningstar. We’ve shared our journeys with you, and you’ve shared back. We’ve listened to what you’re after and created a companion for your investing journey. Invest Your Way is a book that focuses on the investor, instead of the investments. It is a guide to successful investing, with actionable insights and practical applications. The book is currently in presale which is an important time to build momentum. If anyone would like to support this project you can buy the book now. Thanks in advance! Purchase from Amazon Purchase from Booktopia To submit any questions or feedback, please email mark.lamonica1@morningstar.com or leave us a voicemail to feature on the podcast here. Audio Producer and mixer: William Ton. Hosted on Acast. See acast.com/privacy for more information.

We run through why dividends are valuable for investors, and a valuation technique for shares that investors are usually quick to dismiss. A message from Mark and Shani For the past five years, we’ve released a weekly podcast to arm you with the tools to invest successfully. We’ve always strived to provide independent, thoughtful analysis, backed by the work of hundreds of researchers and professionals at Morningstar. We’ve shared our journeys with you, and you’ve shared back. We’ve listened to what you’re after and created a companion for your investing journey. Invest Your Way is a book that focuses on the investor, instead of the investments. It is a guide to successful investing, with actionable insights and practical applications. The book is currently in presale which is an important time to build momentum. If anyone would like to support this project you can buy the book now. Thanks in advance! Purchase from Amazon Purchase from Booktopia This week in Mark’s Unconventional Wisdom column, he looks at the investment theory of mean reversion. Simply, what goes down, must come up. A deep exploration shows that this type of strategy can be successful for individual investors, and he calls out 5 ASX opportunities using this strategy. The largest asset manager in the world, Blackrock has declared that the 60/40 portfolio should be rethought. They also believe that a 70/30 portfolio is likely to deliver 6.5% going forward. In this week's Future Focus column, Shani takes a look at what the research says, and what investors can realistically do to still achieve their goals. Over a year has now passed since Guzman y Gomez's ASX debut. So in the latest edition of Ask the analyst, Joseph thought it would be a good idea to catch up with Morningstar's consumer sectors analyst Johannes Faul. Johannes discussed his view on Guzman's long-term prospects in Australia, what might be baked into the share price at recent levels, and why Johannes is more cautious on Guzman's international prospects than the market. The recent surge in crypto - especially Bitcoin - has reignited debate over the role of these alternative assets in modern investing. In this week's Young & Invested, Sim unpacks what's fuelling the latest bull run and explores whether crypto deserves a strategic position in the long-term portfolios of young investors. To submit any questions or feedback, please email mark.lamonica1@morningstar.com or leave us a voicemail to feature on the podcast here. Audio Producer and mixer: William Ton. Hosted on Acast. See acast.com/privacy for more information.

This episode of Investing Compass reviews the Australian superannuation system. For each aspect of the retirement system, Mark gives it a grade, but also shares the average grade that Morningstar readers gave. This week in Mark's Unconventional Wisdom column, he speaks about how investors can navigate their investments and their portfolio in an age of economic disorder. In a world awash with debt, it's important for investors to understand the impacts on their portfolios and how they're able build resiliency into it. Mark presents three steps to achieve this. Financial advisers are investing in droves in Separately Managed Accounts, or SMAs. In Shani's Future Focus column, she looks at the benefits of this investment product, and why more and more advisers are joining its church. Are investors prone to making the same mistake as many golfers? In a special edition of Bookworm written from his hometown in Scotland, Joseph encourages investors to spend less time obsessing over the next stock idea and more time thinking about their big picture approach. Readers can also laugh at the dreadful score Joseph recorded on one of golf's most historically significant holes during his trip home. Most investors tend to critically analyse their portfolio retrospectively. The recent surge of gold and crypto has proliferated discussions over the optimal asset allocation for modern times. In this week's Young & Invested, Sim unpacks why the price of gold has exploded and whether the asset should hold a place in the portfolios of younger investors. To submit any questions or feedback, please email mark.lamonica1@morningstar.com or leave us a voicemail to feature on the podcast here. Additional resources from our episodes are available via our website. Audio Producer and mixer: William Ton. Hosted on Acast. See acast.com/privacy for more information.

Some investors focus on what the markets are doing each day to understand how their portfolio is going to perform. In this episode, we run through the common behavioural mistakes that will likely have an outsized impact on your portfolio, and how investors can prevent making these mistakes. To submit any questions or feedback, please email mark.lamonica1@morningstar.com or leave us a voicemail to feature on the podcast here. Additional resources from our episodes are available via our website. Audio Producer and mixer: William Ton. In this week's edition of Unconventional Wisdom, Mark goes through the process of playing devil's advocate for his ETF choice for Australian equity exposure. An important exercise for all investors, as it ensures that there are no biases at play and helps you make a strong decision about securities that you choose to include or exclude in your portfolio. He runs through detailed analysis for why it should be included in his portfolio. This week in Future Focus, Shani explores trusts. In a meeting with a tax specialist, she was pointed towards them as a way to minimise tax, especially for those individuals on higher tax brackets. She looks at who these vehicles suit and when they might be too much effort with not enough reward. Joseph tapped the insights of Morningstar’s energy analyst to compare integrated fuel and gas station company Ampol with its industry peer Viva Energy (the owner of Reddy Express). How might Australia’s biggest gas station firms fare in a world with more EVs? Are they likely to keep their Australian oil refineries open amid tough competition? And do the shares offer enough value and yield for income investors to look past these question marks? Find out in Joseph’s latest Stock Showdown! Humans have a natural inclination to assume that expensive equals better. But is that the case with investing? Not really. Paying more often means getting less in return. Investors have largely taken this message onboard and clearly favour low-cost funds while rejecting more costly options. But are we missing out on better products by doing so? In this week's Young & Invested, Sim explores if investors are too obsessed with fees and when paying extra may be worth it. Hosted on Acast. See acast.com/privacy for more information.

This week, Mark and Shani take a look at a quirk to one of the most generous tax concessions that we have in Australia, the CGT exemption for your home. The CGT exemption also allows for you to rent out your property for a number of years, and still claim the CGT-exempt status. We take a deep dive into the tax policy, the circumstances that it suits and the situations to avoid that would make homeowners pay more tax than they need to. You can read the full article here. You can find more examples of the policy on the ATO website. To submit any questions or feedback, please email mark.lamonica1@morningstar.com or leave us a voicemail to feature on the podcast here. Additional resources from our episodes are available via our website. Audio Producer and mixer: William Ton. Hosted on Acast. See acast.com/privacy for more information.

This week's podcast focuses on traditional metrics for understanding whether you're wealthy, and whether there are better ways to assess your progress towards wealth creation in your End of Financial Year review. We run through the ratios you can use during your portfolio review to conduct a holistic assessment. Mark's Unconventional Wisdom column takes a deep look at the state of housing in Australia. He explores whether housing is the anchor weighing Australia down? Mark explains why he thinks is it, and how the cost of housing is sapping the dynamism of the economy, lowering living standards and hampering our financial independence. This week, Shani's Future Focus column focuses on traditional metrics for understanding whether you're wealthy, and whether there are better ways to assess your progress towards wealth creation in your End of Financial Year review. She runs through the ratios you can use during your portfolio review to conduct a holistic assessment. Joseph's featured article this week takes a deeper look at the "deep value" style of investing. He explores what it involves, potential opportunities and drawbacks for individual investors, and where a high profile fund manager that follows this approach is finding ideas today. The article also reveals the most interesting stock pitch that Joseph heard at Morningstar's recent investment conference for financial advisers in Sydney. ETFs have gained mass investor popularity over the last five years. It's safe to say Aussie investors are a little obsessed with the product. And why not? With instant diversification at relatively low cost fees, no one can argue they aren’t an attractive product to build wealth. But is there anything we might be missing with this one-track fixation? Sim explores some of potential drawbacks associated with ETF investing and evaluates how these may effect investor assumptions about the 'safe' investment. To submit any questions or feedback, please email mark.lamonica1@morningstar.com or leave us a voicemail to feature on the podcast here. Additional resources from our episodes are available via our website. Audio Producer and mixer: William Ton. Hosted on Acast. See acast.com/privacy for more information.