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Edition: 159

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Edition 159

  • 10 June 2016

Most investors around the world have a home country bias. They feel safer in the stocks and bonds they know. Warren Buffett has instructed the trustee of his estate for his wife's benefit to: "Put 10% of the cash into short-term government bonds and 90% in a very low-cost S&P500 index fund." That's 100% exposure to one country.

How Japan’s 'Abe-nomics' affects Australian investments

The close relationship between the Japanese share market, Japanese yen and the Australian share market shows that Japanese economic policy and a further boost from 'Abe-nomics' may have implications here.

Opportunity knocks in global small caps

Global small caps have outperformed large caps over the last 15 years, and offer sector and country diversity for Australian investors worthy of a small allocation in a portfolio, modelled at about 5%.

The investment case for Europe

Australian investors may be wary of the European share market with Greece and Brexit in the news, but there's a good investment and diversification case, with access now made easier by Europe equity ETFs listed on the ASX.

What tax deductions are available to property investors?

There are plenty of costs associated with owning an investment property, and a major one is the depreciation of assets. It's vital to claim the full range of legitimate tax deductions as part of the economics of investing.

The amazing world of exotic assets in SMSFs

SMSFs hold some of the most bizarre assets imaginable, challenging auditors required to value them and verify ownership. New rules and compliance obligations for trustees are fast approaching.

Surprising negative gearing and capital gains survey results

Negative gearing and capital gains policies are points of difference between the two major political parties, and our survey shows a preference for change but not towards the policy proposed by Labor.

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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.

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?

Is it time to bail on Australian stocks?

For generations, Australian investors have backed banks, miners and dividends. But has that loyalty come at a cost? A look at the numbers raises an uncomfortable question about where future returns will come from.

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.

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.

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.

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