Tuesday, October 28, 2008


I travel by plane rarely enough that I still find it quite surreal to get in an aeroplane and spend two days thousands of kilometers away and then come back to your ordinary life almost as if it never happened. I also still find expecting a baby to be quite a surreal experience. This is part of the appeal of it.

Saturday, October 11, 2008

To insure or not to insure?

One of the biggest responses I get when I ask the question "Why insure?" is for peace of mind. I personally don't get peace of mind from insurance. Firstly, you can't be sure that the insurer will be solvent at the very time you might need them for a big payout. Secondly, if your cash flow is poor, the very money you spend on insurance can be a drain that could harm your financial security. The returns on investment as far as insurance goes are poor, especially if you have morals and are a lower than average risk of claims. I always get the feeling that the greater part of my premium goes to those with clever but fraudulent or weasel claims, and for the rest of us it is a false peace of mind.

With this in mind, I am happy that Australia is one of the only developed countries in the world that doesn't explicitly insure deposits. Deposit insurance, like other insurance is definitely a false peace of mind. The only insurance for investments like deposits, shares, bonds, property, employee training, love, children the list goes on... is to have a balanced portfolio of investments as well as some cash under the bed etc. Remember the balance!

Tuesday, October 07, 2008