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Friday, 10 April 2020
Recently trending How $200 billion is magically createdHoward Marks on 'Which way now?' - UPDATEDWhat are the possible economic effects of COVID-19 on the world economy?Note to Australia: be more French in the COVID-19 warWelcome to Firstlinks Edition 351
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During the GFC, in the face of rapid falls in super balances, the minimum drawdowns required for pensions were reduced by 50% to help preserve overall retirement savings. It's time for a repeat.
Antarctica is on many bucket lists, but planning for enough money in retirement should start decades earlier. Setting goals and seeking advice can elevate a comfortable retirement to a great one.
Do you risk paying a lot of tax in accumulation phase? Or, if you're in retirement phase, do you face the risk of outliving your asset pool? Two key things to consider in the low-rate world of today.
Our retirement savings system is supposed to encourage financial independence but there is a ‘Retirement Trap’ due to the reduction of age pension entitlements as assets and income rise.
Retirees worry about running out of money, and living solely on the age pension is viewed differently from spending their own money. But in retirement, many report adjusting well to what they have.
The right kind of equity exposure in retirement should come with downside protection and upside capture that enables sufficient participation in market strength. Decumulation investing is different.
This list could save a retiree thousands of dollars and provides ideas for a better lifestyle. It's surprising what you might be entitled to, but it's often hard to track down the benefits.
The '4% withdrawal rate' is a commonly-used safe amount to take from retirement savings and not run out of money. But this may lead to frugality when retirees could enjoy a better lifestyle.
The family home is the biggest asset of most Australians across all age groups, and its role as both a place to live and an investment makes home ownership the biggest retirement policy issue.
1997 Nobel Laureate Robert Merton wants greater focus on the income that will sustain a retirement, and even Jane Austen understood this. And he has a surprising proposal to help with longevity risk.
The pre-Boomer generations faced global wars and depressions, but Australians born after 1946 have enjoyed prosperity. Superannuation, education, strong markets and surging property prices locked in gains.
We should be grateful for our mandatory and 'auto enrolment' super system as the most powerful tool for increasing savings. Without one, the US has a severe retirement crisis approaching.
Australia is in a relatively good position to borrow $200 billion, with the RBA using printed money to buy bonds in the market. The long-term consequences are better than the alternative.
Howard Marks is the largest investor in the world in distressed securities. What does he think after checking the virus positives and negatives, and how much has he changed his mind in only a few days?
In a widely-quoted scenario using estimated attack and fatality rates of coronavirus, about 0.07% of the population of the US dies. That's about 230,000 people, which the market is not ready for.
Andrew Baker is well-known as a superannuation consultant. Now working in the UK, he was caught in France with his family and is in lockdown. He worries Australian policy was too slow.
The $130 billion wage stimulus is astounding in its generosity and scope. It's equivalent to the annual budgets for defence, education and health combined. A cafe owner told me a casual dishwasher who was paid $60 for two hours work a week now wants the $1,500 fortnightly payment. Shane Oliver exclusively explains where $200 billion will come from, and some longer-term consequences.
Hamish Douglass outlines the three main issues in the outbreak of coronavirus, with consequences which may change businesses and consumers forever. Will we face V-shape, U-shape or depression?