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Edition: 125

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Edition 125

  • 5 September 2015

Bad timing and poor returns, chasing alpha, what's wrong with reverse mortgages, three investment rules, China's stockmarket, and the superannuation default options.

Timing badly: generating poor returns in good strategies

When a managed fund reports its amazing five-year track record, who actually experiences this same return? The timing of entry and exit and mismatched time horizons are counting against the average investor.

Competing for alpha

The term 'alpha' may be financial jargon, but for fund managers, it's the highly sought-after prize for successful active management that justifies fees charged. But how do you select a good manager?

Why are reverse mortgages unpopular?

Using the equity in the home to supplement retirement income is worth considering for certain people, so why are banks dropping reverse mortgage products and why do so many retirees feel it's not for them?

Three rules to invest by

Here are three simple investment rules that should see you through the volatile times, or indeed all times. But for starters, it's a good idea to have a plan, and a portfolio that suits you.

Chinese shares and currency red herrings

Despite the recent falls, the performance of Chinese shares over the last 12 months is still above Japan, Europe, the US and Australia. But the Chinese market is a casino, and currency movements are more important.

Super engagement better than expected

Most public super funds updated their 'default' settings under MySuper, and recent research shows these options are not solely for the disengaged. Many people are actively choosing the option based on trusting the fund.

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It’s time for LICs to die

A high-profile dividend cut and a prominent fund manager’s apology have reignited a long-running debate. If investors can access similar exposures more cheaply and efficiently elsewhere, what exactly is keeping LICs alive?

Testamentary trusts survived the trust tax. The drafting battle has just begun.

The fight over testamentary trusts looked settled. Then the draft legislation arrived. Hidden in a technical detail is a question that could force many families to rethink wills they thought were already future-proof.

The new capital gains tax trap for your portfolio

Investors have long accepted one portfolio rule without much question. A major tax shift could change that calculation entirely, forcing difficult trade-offs between risk, discipline and an overlooked cost lurking beneath.

The retirement scorecard: how many of these questions can you answer?

From the maths of retirement, estimating spending and picking the right asset allocation to survive a poor decade, here are the questions every retiree – current or future – should be able to answer for themselves.

How the typical Australian Family could save $844,350 in taxes

The value of a testamentary trust is not determined by wealth alone. Depending on circumstances, it can reduce the tax burden on inherited income, create efficiencies and help build intergenerational wealth.

The housing slide could become a crash

House prices are sliding across Australia, yet the most dangerous ingredient for a housing crash is still missing. If job losses surge amid growing economic risks, today's correction could become a historic property downturn.

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