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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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Many trustees of SMSFs have become complacent about vague Investment Strategies, but fund auditors and regulators are paying far more attention. Ensuring your fund complies requires some simple changes.
Traditional SMSF asset allocations to cash, banks and property are changing as ultra-low interest rates start to bite, and SMSFs take on more diversified equity and fixed interest exposures.
Arguments between segments of the super industry do not foster public confidence. SMSFs are suitable for many who seek control of their own financial destiny, but it's not a competition.
From 1 July 2018, new provisions affect SMSF members putting business real property into their SMSF, including making future contributions. But it's not the end of this popular strategy.
With the best will in the world, family disputes often occur on the death of a family member. SMSFs often hold substantial assets, and the role of trustees and death benefit nominations is tricky.
With increasing scrutiny on SMSFs, it's worth checking yours is on track. Issues include establishing, investing, obligations, compliance, paying benefits and preparing for an eventual exit.
Many SMSF trustees rely heavily on the Top 10 stocks on the ASX for income including franking, but the capital preservation has not been good. The franking debate was a good reminder to reconsider the asset allocation.
Three weeks to go before the EOFY is still enough time to comply with the rules and make the most of superannuation and income tax opportunities. Here's a quick checklist.
In the world of SMSFs, an aligned accountant and financial adviser can make a formidable, synergistic team. Specialists who can’t be friends can be the opposite, when the best interests of the client are paramount.
With limits placed on the size of a pension SMSF, there may be good reasons to establish a second SMSF and segregate assets and strategies for optimal outcomes, if the effort and cost is worth it.
This analysis suggests that Australian investors who lose franking credit refunds under the Labor proposal should significantly increase holdings of global equities to meet an efficient investment frontier.
If you have been maintaining a small inactive superannuation fund purely for insurance purposes, you need to act quickly to avoid losing cover which might be difficult to replace.
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?