Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 245

Cuffelinks Newsletter Edition 245

  •   23 March 2018
  •      
  •   

We'll ignore the dispiriting interchange at the Royal Commission this week and start with a quotation on his life plan from Stephen Hawking, who died last week, which includes his 'retirement' planning:

"One, remember to look up at the stars and not down at your feet. Two, never give up work. Work gives you meaning and purpose and life is empty without it. Three, if you're lucky enough to find love, remember it is there and don't throw it away."

Data from the Australian Bureau of Statistics on retirement indicates about 3.6 million have 'retired from the labour force', although not always voluntarily. New research from Roy Morgansays 415,000 Australians intend to retire this year, up from 326,000 in 2008. That's a surprising 1,000 a day! The average age of intending retirement is rising quickly, especially for women. 


Source: Roy Morgan, as at December 2008 and December 2017.

Of course, 60 is the new 40. When I play football on Saturday, I take Voltaren with breakfast, top up with Panadol Osteo mid-morning, secure my ankles and shoulders with strapping tape, squeeze into Skins wear and use an elastic bandage on my right hamstring. My left shoulder and right knee have titanium pins. At the game, I massage with Dencorub before a stretching regime, then I try not to break anything for a couple of hours. Sunday I hobble around, Monday I go to the physio. Repeat. Millions of Australians over 60 aim to stay fit, travel and work and desperately hope they remain healthy as long as possible. 

Franking credit refunds

Labor's new policy has sparked a debate about who is rich and who pays tax, with ambiguous data that is confusing most people. On the ABC's Q&A programme this week, opposing politicians argued about the difference between income and taxable income, while the millennial on the panel admitted most of her generation don't understand the issue. Bernard Keane, writing in Crikey on 14 March 2018 said:

"This is about class war. It's a war waged by wealthy older Australians on lower-income Australians and younger Australians ... This will be a bare-knuckle brawl between a very powerful interest group in the electorate and a major political party, an intersection of policy virtue and raw political power. Buckle up."  

Wow. Explains why our articles last week received record numbers of comments. Warren Birdbuckles up and outlines why company tax is effectively a prepayment of tax for the shareholder, and the franking credit refund means the investor has paid too much tax based on their own personal tax rate. Brad Newcombe looks at the possible impact of the policy on hybrids.

Other articles this week     

Estelle Liu and David Bell warn that Treasury is developing plans that could make the superannuation retirement gap for women even worse. The impact on reversionary benefits and gender equality should have greater scrutiny. 

Still on super, Julie Steed offers some checks for anyone considering the new downsizer contributions, while Jeff Gebler asks why so many retirees spend less than the age pension.

On investing, Anthony Kirkham argues Australia is unlikely to follow US interest rate policy, and Jason Orthman and Mark Arnold see excellent opportunities with luxury goods manufacturers. James Freeman explores how behavioural biases can reduce market returns.

This week sadly saw the first person to lose their life after being hit by a driverless car, forcing Uber to abandon its testing. It makes the White Paper published last week on autonomous vehicles from AMP Capital even more relevant. Not a great week for tech with Facebook facing new regulations and its shares falling about 10%. In another timely White Paper, Magellanfocusses on big data, privacy and how companies are using your personal information.

Finally, a reminder that we provide a short online test with each edition for anyone wanting CPD hours for professional qualifications or training requirements. The tests are here. 

Graham Hand, Managing Editor

 

Edition 245 | 23 Mar 2018 | Editorial | Newsletter

 

  •   23 March 2018
  •      
  •   

 

Leave a Comment:

banner

Most viewed in recent weeks

Australian stocks will crush housing over the next decade, 2025 edition

Two years ago, I wrote an article suggesting that the odds favoured ASX shares easily outperforming residential property over the next decade. Here’s an update on where things stand today.

Australia's retirement system works brilliantly for some - but not all

The superannuation system has succeeded brilliantly at what it was designed to do: accumulate wealth during working lives. The next challenge is meeting members’ diverse needs in retirement. 

Get set for a bumpy 2026

At this time last year, I forecast that 2025 would likely be a positive year given strong economic prospects and disinflation. The outlook for this year is less clear cut and here is what investors should do.

Meg on SMSFs: First glimpse of revised Division 296 tax

Treasury has released draft legislation for a new version of the controversial $3 million super tax. It's a significant improvement on the original proposal but there are some stings in the tail.

The 3 biggest residential property myths

I am a professional real estate investor who hears a lot of opinions rather than facts from so-called experts on the topic of property. Here are the largest myths when it comes to Australia’s biggest asset class.

Property versus shares - a practical guide for investors

I’ve been comparing property and shares for decades and while both have their place, the differences are stark. When tax, costs, and liquidity are weighed, property looks less compelling than its reputation suggests.

Latest Updates

Investment strategies

Building a lazy ETF portfolio in 2026

What are the best ways to build a simple portfolio from scratch? I’ve addressed this issue before but think it’s worth revisiting given markets and the world have since changed, throwing up new challenges and things to consider.

Investment strategies

21 reasons we’re nearing the end of a secular bull market

Nearly all the indicators an investor would look for suggest that this secular bull market is approaching its end. My models forecast that the US is set for 0% annual returns over the next decade.

Property

13 million spare bedrooms: Rethinking Australia’s housing shortfall

We don’t have a housing shortage; we have housing misallocation. This explores why so many bedrooms go unused, what’s been tried before, and five things to unlock housing capacity – no new building required.

Investment strategies

Market entry – dip your toe or jump in all at once?

Lump sum investing usually wins, but it can hurt if markets fall. Using 50 years of Australian data, we reveal when staging your entry protects you, and when it drags on returns. 

Investment strategies

The US$21 trillion question: is AI an opportunity or excess?

It has been years since the US stock market has been so focused on a single driving theme, and AI is unquestionably that theme. This explores what it means for US and global markets in 2026.

Economy

US energy strategy holds lessons for Australia

The US has elevated energy to a national security priority, tying cheap, reliable power to economic strength, AI leadership, and sovereignty. This analyses the new framework and its implications for Australia.

Strategy

Venezuela’s democratic roots are deeper than Trump knows

Most people know Maduro was a dictator and Venezuela has oil. Few grasp the depth of suffering or the country’s democratic history - essential context as the US ousts Maduro and charts Venezuela’s future. 

Sponsors

Alliances

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.