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Edition: 130

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Edition 130, 16 Oct 2015

  • 16 October 2015

Different types of responsible investing, the right choice for retirement living, making sense of financial information, the reality of roboadvice and how disruption might occur, and a run down on the resources sector.

Sustainable, responsible or ethical – what’s the difference?

Responsible investing is increasingly mainstream and relevant, but there are many words used to describe similar activities. What do they all mean and how do managers decide where to invest?

Don’t have retirement village regrets

When choosing where to live in retirement, understanding the features and financial arrangements of each option is the best way to avoid those common regrets. But sort it out before making the move.

Investment newsletters: making sense of stock recommendations

Financial information comes from many different sources, with one often contradicting another. Be selective with the investment newsletters you receive to ensure they align with your investment style and goals.

The reality of roboadvice

While roboadvice businesses are ramping up in Australia, we are yet to see one come close to providing the full range of financial advice services offered by human advisors. The nuances are too complex.

Roboadvice disruption – you won’t see it coming

Roboadvice disruption could come from anywhere, opening the door for non-traditional providers without incumbents even realising it. When it's more exciting, it can grab the attention of the previously disengaged.

What to do with resource stocks

After the large falls in the prices of most resource stocks over the last year, investors might be wondering what to do. Here are a few factors to consider relating to resources at this time of great uncertainty.

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Why spending more in early retirement can improve lifetime income

Conventional wisdom encourages retirees to preserve superannuation. But if those likely to qualify for the Age Pension later in life spend a little more today, it may deliver higher lifetime income and a more stable retirement.

Will you run out of money in retirement?

Fear of running out has become a defining retirement anxiety. Why do some retirees die with substantial wealth while others deplete their nest egg? Evidence suggests the answer is more complicated than we think. 

The investment that sidesteps the new tax traps

Tax rules have changed, but many investors are still using yesterday’s strategies. Insurance bonds may offer advantages for those seeking greater control, tax efficiency and certainty about their wealth.

Testamentary trusts have secured the CGT exemption

Treasury’s latest CGT reform draft delivers a win for testamentary trusts and deceased estates, exempting estate-derived gains from the 30% floor. However, questions on death and divorce rollovers remain unresolved.

Meg on SMSFs: What do we think about reversionary pensions these days?

Reversionary pensions have long been a staple of SMSF estate planning, but are they still the best option? Meg Heffron revisits a once-clear favourite and asks whether changing super rules have shifted the balance.

How does the 4% rule stack up?

The 4% rule has long been retirement's gold standard. But after a difficult period for investors, fresh analysis suggests a more conservative approach may significantly improve the chances of making savings last.

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