A measure that has been introduced in some states since the COVID-19 pandemic, is the temporary ability for deeds to be executed electronically.

The legislation enables documents including deeds, to be signed and witnessed electronically, via an audio-visual link. There are varying requirements, from state to state, to ensure the validity of the electronic signings and these all need to be carefully considered, including that these are completed before the legislation expires. In some states, no such legislation has been enacted, and those that have done so will see the legislation expire before the end of the calendar year.

It leaves me wondering how these electronically-signed documents will be treated in the future, years after our current pandemic is ‘forgotten’? Will they be acceptable in a court of law, when our memories of this current event and the relaxation measures allowed, have dimmed?

Another recent interesting case is that of a discretionary trust, where the original trust deed could not be located and only photocopies of the deed could be found. This case was taken to court after a bank proceeded to freeze a trust bank account until the original could be produced. The court ruled that the photocopy was ‘overwhelmingly likely’ to be a copy of the original which could not now be found.

It’s perhaps a timely reminder that we need to retain original signed trust deeds, such as that for a discretionary trust as in this case, or the trust deed for a self-managed superannuation fund as another example. Keeping them until the trust is finally wound up is prudent, and may just save you a trip to court if you can’t locate the original.

Please note this article provides general advice only and has not taken your personal, business or financial circumstances into consideration. If you would like more tailored advice, please contact us today.

Investing can be frustrating and depressing at times, particularly if you don’t understand how markets work and don’t have the right mindset. This is especially true given the rollercoaster ride we are currently experiencing due to the COVID-19 pandemic. The following investment quotes are extremely relevant and provide a great foundation which stays true regardless of market volatilities and uncertainties.

“If you fail to plan, you plan to fail.” – Benjamin Franklin

Having a clear understanding of your investment goals and a plan on how to get there when saving for a home, retirement or generating income to live on is critical. If you don’t have a clear plan you will be subject to all sort of distractions which can impact where you want to get with your investments. Having a financial adviser assist in setting up a plan and ensuring that you stay on track is a great way to help you achieve your financial aspirations!

“If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks.” -John Bogle

Successful investing is all about knowing yourself. Smart investors have an awareness of their weaknesses and seek to manage them. One way to do this is to take a long-term approach. If you want to trade day to day then you need to recognise that this requires a lot of effort, a rigorous process and a willingness to go against the crowd. Having an understanding of your own tolerance to risk and aligning your investments to that risk level ensures that you don’t get lost in all the noise and stay confident in your long term financial decisions.

“Be fearful when others are greedy and greedy when others are fearful” – Warren Buffett

Beware of the herd! Buffet warns of buying irrespective of prices during a bull market and selling out of fear during downturns. When others are greedy, prices typically boil over, and one should be cautious lest they overpay for an asset that subsequently leads to anemic returns. When others are fearful, it may present a good value buying opportunity. Prime examples of substantial returns include; post Global Financial Crisis (GFC) in 2008/09 and the recent market recovery post the March COVID-19 sell-off. It is often emotionally difficult to make these decisions and act in contrary to the broader market which is why having guidance from a professional adviser can assist in making the tough yet profitable decisions in the long run.

If you can truly understand and take the above investment philosophies to heart then you should have no problem sticking to our own investment strategies, embrace risk and invest in alignment to our own risk appetites and last of all take advantage of short term market mispricing by going against the crowd which would have the greatest chance of securing fruitful returns in the long run.

Please note this article provides general advice only and has not taken your personal, business or financial circumstances into consideration. If you would like more tailored advice, please contact us today.