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

 


 

Leave a Comment:

banner

Most viewed in recent weeks

Simple maths says the AI investment boom ends badly

This AI cycle feels less like a revolution and more like a rerun. Just like fibre in 2000, shale in 2014, and cannabis in 2019, the technology or product is real but the capital cycle will be brutal. Investors beware.

Why we should follow Canada and cut migration

An explosion in low-skilled migration to Australia has depressed wages, killed productivity, and cut rental vacancy rates to near decades-lows. It’s time both sides of politics addressed the issue.

Are LICs licked?

LICs are continuing to struggle with large discounts and frustrated investors are wondering whether it’s worth holding onto them. This explains why the next 6-12 months will be make or break for many LICs.

Retirement income expectations hit new highs

Younger Australians think they’ll need $100k a year in retirement - nearly double what current retirees spend. Expectations are rising fast, but are they realistic or just another case of lifestyle inflation?

Welcome to Firstlinks Edition 627 with weekend update

This week, I got the news that my mother has dementia. It came shortly after my father received the same diagnosis. This is a meditation on getting old and my regrets in not getting my parents’ affairs in order sooner.

  • 4 September 2025

5 charts every retiree must see…

Retirement can be daunting for Australians facing financial uncertainty. Understand your goals, longevity challenges, inflation impacts, market risks, and components of retirement income with these crucial charts.

Latest Updates

Shares

Why the ASX may be more expensive than the US market

On every valuation metric, the US appears significantly more expensive than Australia. However, American companies are also much more profitable than ours, which means the ASX may be more overvalued than most think.

Economy

No one holds the government to account on spending

Government spending is out of control and there's little sign that Labor will curb it. We need enforceable rules on spending and an empowered budget office to ensure governments act responsibly with taxpayers money.

Retirement

Why a traditional retirement may be pushed back 25 years

The idea of stopping work during your sixties is a man-made concept from another age. In a world where many jobs are knowledge based and can be done from anywhere, it may no longer make much sense at all.

Shares

The quiet winners of AI competition

The tech giants are in a money-throwing contest to secure AI supremacy and may fall short of high investor expectations. The companies supplying this arms race could offer a more attractive way to play AI adoption.

Preparing for aged care

Whether for yourself or a family member, it’s never too early to start thinking about aged care. This looks at the best ways to plan ahead, as well as the changes coming to aged care from November 1 this year.

Infrastructure

Renewable energy investment: gloom or boom?

ESG investing has fallen out of favour with many investors, and Trump's anti-green policies haven't helped. Yet, renewables investment is still surging, which could prove a boon for infrastructure companies.

Investing

The enduring wisdom of John Bogle in five quotes

From buying the whole market to controlling emotions, John Bogle’s legendary advice reminds investors that patience, discipline, and low costs are the keys to investment success in any market environment.

Sponsors

Alliances

© 2025 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.