Beware of the bond bear; The death of commissions for advice; How to avoid common investment mistakes; Chasing the wind; Forest bathing

By Amanda Morrall

1) "Bonds are a park and the metre is ticking" 

Falling yields on German and U.S. Government bonds don't seem to be stopping investors from piling into them because they are perceived as safe havens.

On Wednesday. Yields on 10-year U.S. Treasury notes sunk to a record low of 1.615%.

The yield on the 10-year German bund also hit a record low the same day tumbling to 1.276%. Similar maturity yields for German, Swiss, British and Japanese debt have also fallen.

Concerns about deflation seem to outweigh worries over inflation but even so it's still bad news for investors swathing themselves in a "bond blanky" that might bring comfort but not much else.

This piece by CNN Money explores the impact of the Eurozone crisis and the long-term implications for those bond lovers.

Can you spot the bear? 

Gene Needles, CEO of American Beacon Advisors can:

Although Needles believes investors will remain nervous about Europe for the foreseeable future, he thinks people need to realise that they are actually losing money slowly on Treasuries when you consider that the rate of inflation, even as low as it is right now, is higher than the yield on the 10-year. Needles said investors should look for steady income elsewhere, citing quality corporate bonds or dividend-paying stocks as examples.

"This may not be a bubble in the short run. But when inflation eventually picks up, this will end badly. Not many investors have experienced a bear market in bonds. They are just as ugly as bear markets for stocks," he said. "Bonds are a parking place and the meter is ticking."

2) The price of advice

Across the pond, financial advisors are ditching the practice of taking commissions for advice and switching to a fee for service model. The same thing is happening in the U.K. Meanwhile, New Zealand continues to allow the practice of commissions on financial advice but increasingly it's come under scrutiny. Financial advisors,  under the new regulations, are required to spell out very clearly to clients how they get paid and by whom.

In the U.K. one financial outfit is attempting to adapt to the new environment by targeting middle-income earners with money to invest by offering bite size advice for a modest fee. The article underscores the changing the financial advisory landscape and signals what's ahead for NZ. Closer to home, Here's another piece from authorised financial advisor and consultant Tony Vidler advising Kiwi advisors on how to prepare.

3) How to avoid common investment mistakes

As the U.K.-sourced article above suggests, the greatest threat to financial advisors could be the internet as more investors look to educate themselves, and learn from a community of like-minded folk willing to share information and tips and lessons learned, for free.

In that vein, here's a primer on how to avoid common investment mistakes.

4) Chasing the wind

Chasing returns without understanding why is another hazard for investors.

This blog from becomingminimalist.com makes some very good points about the end goal and finding happiness. Finance is personal.

5) Walk it off

In that same spirit, here's another article from the Globe and Mail on the return on investment you'll get from talking time to go for a walk. I've been emailing this article to everyone I know. Enjoy your autumnal forest bath.

To read other Take Fives by Amanda Morrall click here. You can also follow Amanda on Twitter@amandamorrall