Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 336

Welcome to Firstlinks Edition 336

  •   11 December 2019
  •      
  •   

The irony of the focus on longevity and the retiree fear of money running out is that most people leave more assets to their estate than they held when they entered retirement. If it's possible to look down from beyond the grave, it must be frustrating for anyone who worked hard and saved, then lived a frugal retirement, only to see the following generations fritter the money away.

New research from Perpetual based on 3,000 Australian families shows that while 58% of people hope their children will invest for their future, an estimated 70% of families will lose their wealth by the second generation, and 90% by the third. It's a frightening prospect when $3.5 trillion will be transferred from Boomers in the next 20 years. Financial education for following generations is essential (try subscribing them to Firstlinks as a start!). Andrew Baker, General Manager of Private Clients at Perpetual Private, says:

"We tend to shy away from discussing money amongst our families and friends. However, as we approach the largest intergenerational wealth transfer in history with more than half of Australians expecting to inherit, why have only just over a third discussed their wishes with their children?”

The coming holiday season might be a good time to talk about money with the family, and here's some more context. Ross Fox reports on the investing priorities of millennials, including where they like to invest, whether they have the resources and who they trust with their money.

Most of our readers are not directly affected by the funds reported in APRA's new 'heatmap' of rankings for MySuper products, but many have children who are. These funds are the 'defaults' offered by industry and retail funds on behalf of employers, so it's worth checking the list to see how your family's fund is performing and the fees it is charging. Everyone has a choice.

The release caused a flurry of activity in large super funds, especially by nervous trustees and fund managers. Peak representative groups warned of the narrow scope of APRA's work and short time period used in the results. We report on the major insights while Phil Graham checks the numbers and asks why APRA needed to go public.

The strong equity markets of 2019 have surprised everyone, especially when forecasts done in December 2018 were made in a climate of a poor quarter and expectations of Fed tightening. It continues an excellent decade, as Ashley Owen breaks down the asset class performance.

And it's also been another good year for Exchange Traded Funds (ETFs), and Ilan Israelstam updates research showing the increasing acceptance of this investment vehicle.

One subject in our articles that is more complex than the superannuation rules is the various aged care living choices. Annika Bradley looks at retirement villages and points to where to find help.

Jeff Song checks the latest rules on a common use for SMSFs, to buy 'business real property', such as a dental surgery or office premises, from a member and lease it back.

This week's White Paper from Channel Capital's RWC examines some of the fastest-growing countries in the world in emerging and frontier markets. It's a mix of risk and opportunity.

 

Graham Hand, Managing Editor

For a PDF version of this week’s newsletter articles, click here.

Sat 14 Dec: two articles added, for the updated PDF, click here.

 

  •   11 December 2019
  •      
  •   

 

Leave a Comment:

banner

Most viewed in recent weeks

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?

Four best-ever charts for every adviser and investor

In any year since 1875, if you'd invested in the ASX, turned away and come back eight years later, your average return would be 120% with no negative periods. It's just one of the must-have stats that all investors should know.

Why super returns may be heading lower

Five mega trends point to risks of a more inflation prone and lower growth environment. This, along with rich market valuations, should constrain medium term superannuation returns to around 5% per annum.

The hidden property empire of Australia’s politicians

With rising home prices and falling affordability, political leaders preach reform. But asset disclosures show many are heavily invested in property - raising doubts about whose interests housing policy really protects.

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.

Our experts on Jim Chalmers' super tax backdown

Labor has caved to pressure on key parts of the Division 296 tax, though also added some important nuances. Here are six experts’ views on the changes and what they mean for you.        

Latest Updates

Shares

Four best-ever charts for every adviser and investor

In any year since 1875, if you'd invested in the ASX, turned away and come back eight years later, your average return would be 120% with no negative periods. It's just one of the must-have stats that all investors should know.

Our experts on Jim Chalmers' super tax backdown

Labor has caved to pressure on key parts of the Division 296 tax, though also added some important nuances. Here are six experts’ views on the changes and what they mean for you.        

Superannuation

When you can withdraw your super

You can’t freely withdraw your super before 65. You need to meet certain legal conditions tied to your age, whether you’ve retired, or if you're using a transition to retirement option. 

Retirement

A national guide to concession entitlements

Navigating retirement concessions is unnecessarily complex. This outlines a new project to help older Australians find what they’re entitled to - quickly, clearly, and with less stress. 

Property

The psychology of REIT investing

Market shocks and rallies test every investor’s resolve. This explores practical strategies to stay grounded - resisting panic in downturns and FOMO in booms - while focusing on long-term returns. 

Fixed interest

Bonds are copping a bad rap

Bonds have had a tough few years and many investors are turning to other assets to diversify their portfolios. However, bonds can still play a valuable role as a source of income and risk mitigation.

Strategy

Is it time to fire the consultants?

The NSW government is cutting the use of consultants. Universities have also been criticized for relying on consultants as cover for restructuring plans. But are consultants really the problem they're made out to be?

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.