Wednesday, 21 August 2019
Recently trending Retirees facing steep increases for basic itemsLet’s stop calling them ‘bond proxies’Adele Ferguson on ‘Banking Bad’ and weaving magicSix warning bells against property spruikersHelping your children build their super
The journalist most responsible for the calling of the Royal Commission takes care not to be roped in by everyone with a complaint to push. It takes experienced judgement to gather the right information.
As we transferred thousands of articles, White Papers and comments to our new website, we realised that our smart readers should know more about our vast archive of great material. Take a look around.
Property spruikers use common techniques, and con men will increasingly target older people who feel they do not have enough financial independence for their retirement years.
ASFA has updated its tables on how much money is needed for a 'comfortable' or 'modest' lifestyle in retirement, but there are some unavoidable prices rising well ahead of inflation.
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It has become more difficult to build large superannuation balances with contribution caps and more people paying off home loans for longer. How can wealthy parents help their adult children?
If you think those darlings of the ASX, the WAAAX stocks, have the most spectacular valuation excesses, how about 80 cents to $280 in a few months? Poseidon was the biggest of all, and we don't learn the lessons.
Rebalacing can feel counterintuitive as you sell your winners and buy more losers. A reasonable compromise is to rebalance every 12 months, which might offer capital gains tax advantages.
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Welcome to Firstlinks Edition 319
A couple of weeks ago, a mate hosted his 70th birthday bash (thanks for asking, no, I am nowhere near that age). He was surrounded by his children, grandchildren and dozens of friends. As waiters brought out fine food and wine, he said the last few years had been the happiest of his life. As Paul Keating wrote in an early edition of Cuffelinks, the years from 60 to 80 should be about retirement living and lifestyle.Read More.
Think you can pick winners? A minority of listed Australian companies make a profit and most are speculative stocks that will eventually disappear, taking the dreams and money of investors with them.
Investment styles go in and out of fashion and can explain why some fund managers spend long periods under- or out-performing an overall index. But what are these major styles?
A look at long-term performance gives a sense of perspective that helps tune out short-term noise, focus on your long-term goals and ‘stay the course’. Here are some interactive charts.
Welcome to the 'Have Your Say' section. We have received thousands of comments on articles over the years, but here is a chance for you to set the agenda. Comment on any subject relevant to our audience.
Investors looking for active management should understand the different structures as access, dividends, discounts or premiums, ability to buy and sell and pricing vary by type.
In seeking additional income, some type of market risk must be taken to earn above the 2% on term deposits. The listed market now offers a vast array of alternatives not available even a couple of years ago.
For value investing to remain a rational strategy, mean reversion must hold true, which requires supportive economic conditions. But historical ranges are not relevant to companies losing market share.
Political outcomes are challenging to predict. Instead, we need to focus on the investment implications of a variety of policy outcomes. A long term perspective is where valuation intersects with fundamentals.
Inevitably, with each new development in this cycle, investors as what they can do to prepare for a recession. Our answer: revisit asset allocation, diversify, and review active risks in your portfolio.
Total returns from the local stock market have averaged 10.5% per year since Federation, with 12% p.a. under right-leaning governments and 8% p.a. under left-leaning governments. But it's mainly luck.
Both the Government and Labor have made impressive commitments to infrastructure, but it focusses heavily on roads and rail. Australia's economic potential depends on more essential services.
It's an election budget with money to spend, driven by income and company taxes. It again relies on China, so as the economy and global growth stalls, the long-term revenues are doubtful with spending locked in.
Exclusive: Hamish Douglass’s 13 lessons from years of investing include how to find the right investments, how to let investments work for you, risk management and the best temperament.
There’s a lot of talk of the WAAAX stocks causing fund underperformance, but they’re simply not big enough compared with choosing the wrong winners and losers among the large cap stocks.
The Coalition victory in the Federal election removed many policies which were overhanging the property market, and a relaxation of bank lending conditions is underpinning the signs of recovery.
If an investor had been living on the moon or under a rock for a year and returned on 30 June 2019, on seeing their portfolio, they would have thought it was a delightful year full of good news.
In some parts of the market, the case for active management over passive is strong. The less-researched small companies space shows a focus on strong capital, proven management and a clear strategy pays off.
Although gold is not an income-producing investment, the price tends to do well when equity markets fall and interest rates are low. The recent strength is in response to perceived greater risks in financial markets.
SMSFs are useful retirement vehicles, but there are rules to follow which can easily be overlooked in haste. Run your eyes over the next five rules in this continuing list.
Statements by Brian Hartzer, CEO of Westpac, confirm that financial advice delivered by advisers to the mass market is not financially viable, and technology is the solution if most Australians are not to miss out.
Recent legal cases involving Westpac and BT put to rest any view that 'caveat emptor' (buyer beware) applies to 'no' and 'general' advice service models, even though those models do not attract a best interests duty.
Structuring giving using Public or Private Ancillary Funds is an attractive strategy for donors who need a tax deduction now, and the flexibility to distribute the funds to charity over time.
It is better for management and regulatory bodies to work together to preserve the innovative engines of Facebook and Google, not impose painful government intervention.
From Chris Cuffe's original idea in 2008, several investment vehicles now seek to deliver strong performance and donate fees to charities, creating a win-win for all involved.
The role of Chief Operations Officer is not well understood, but it involves everything from keeping the office running day-to-day to long-term strategic planning, and the ability to multitask is essential.
Regardless of how a fund manager is performing, it's vital to have the confidence in a long-term set of rules that have stood the test of time through many markets, including recognising SRI principles.
Managing listed real estate investments on a global basis allows opportunities to be taken anywhere, and as demographics affects property, move into different sectors and countries. But ultimately, all property is local.
Our Interview Series continues with a small cap manager who uses unique filters, including the Toddler Index, and likens investing to going to a nightclub. And guess what time of night it is.
Continuing our Interview Series to learn how professional portfolios are managed, we go into the world of global corporate bonds for diversified income hedged into Australian dollars from liquid bond markets.
All our ethics are different. How does an 'ethical' fund manager address the inevitable conflicts of competing priorities, and are there any clues for everybody in dealing with their own ethical dilemmas?
Where are equity markets heading in the short term? Sorry, can't help you. Who knows what the most powerful (currently) man in the world will tweet in the middle of the night, with every bond and currency trader among his 62.8 million followers?
In an exclusive from Hamish Douglass, he shares 13 investment lessons he has applied in building the Magellan business. He divides the insights into four topics: finding investments, letting them work for you, temperament and risk.
If you knew your incoming boss thought something the business does is 'absolutely abhorrent', would you fix it before he arrived? I know I would.
If you want to know what financial markets absurdity looks like, check this bond priced last week: Issued by Bundesrepublik Deutschland (Federal Republic of Germany); maturing 15 August 2029 (10 years); with a coupon of 0.000000% fixed (zero, zip, zilch, nada ... any way you cut it); and an issue price of 102.64 (yes, pay 102.64 now and receive 100 in 10 years).
Strange times indeed. Despite US and Australian equity markets near all-time highs and superannuation funds enjoying record inflows, the wealth industry is undergoing a severe overhaul. Unprecedented numbers of fund managers are not only struggling but closing their doors.
Most investors enjoyed the strong sharemarket recovery in the second half of 2018/2019, with the All Ords Index up a wonderful 19.8% including dividends after a shaky December quarter.
Chris has many years of experience in building successful wealth management practices.
Noel Whittaker is one of the world's foremost authorities on personal finance.
Phil Ruthven is the founder and director of IBISWorld, Australia's best-known business information, forecasting and strategic services corporation
Paul John Keating is a former Australian politician who served as the 24th Prime Minister of Australia, in office from 1991 to 1996 as leader of the Labor Party.
Australian ETF Review July 2019.
announces transformational three-year strategy, 1H 19 results.
launches India Quality ETF (ASX:IIND).
The Commonwealth Bank's reputation has taken a battering at the Royal Commission, and a veteran of 13 years on the top table of the Bank's Executive Committee explains what went wrong and where we should head.
Noel Whittaker shares his 20 Commandments of wealth management after decades of advising clients, writing bestselling books and reaching millions of people every week on radio and television.
A good financial adviser can become a life-long guide to financial security, which makes taking the time to select one a major part of an investor's plan. Make it a two-way conversation and learn how the adviser works.
The marketing of Spaceship super has been better at engaging young people than any superannuation fund before it, but does it have the right product for a long-term flight?
Your SMSF story reflects your life's journey, and real people telling real stories encourage the popularity of this super structure. It's something the retail and industry funds have struggled with.
Every experienced investor develops a set of beliefs about how markets operate, and finds the proof points to defend those views. Managing the Third Link Growth Fund has taught Chris some unconventional lessons.
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