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Edition: 244

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Cuffelinks Newsletter Edition 244

  • 16 March 2018

Labor’s new franking policy, Royal Commission train wreck, Sir Michael Hintze AM exclusive, shares v bonds, dividend conspiracy, insurance in super.

Reply to Peter: Why a glide path makes sense, with equities for growth

Don replies to Peter. People saving for retirement should separate shallow and deep risk. Shallow risk, where prices fall, can be good in accumulation phase. Deep risk is a serious long-term deterioration.

Retained profits a conspiracy against super and pension funds

For a pension fund with a tax rate of zero, it is better to receive an after-tax dividend of $100 than a company retaining after-tax capital of $70. Why aren't company directors asked about this tax inefficiency?

Interview with Sir Michael Hintze, AM: why an investing edge needs imagination

Sir Michael Hintze founded CQS in 1999 and it has established itself in London as a major credit-focused, global, multi-strategy asset manager with AUD20 billion under management. We chatted on his recent visit to Australia.

Impact on pensions and super from loss of excess franking

The Labor proposal to eliminate refunds of excess franking credits will have a significant impact on many retirees who hold Australian shares paying fully franked dividends.

Impact on returns from loss of excess franking

The Australian share market offers a dividend yield of about 4.2% at the moment, supported by franking credit of 1.5% to give an attractive 5.7%. The focus is on the refund of this credit.

A chat with Chris Cuffe at ‘Women in Super’

Chris Cuffe shared his views on default super, internalising asset management, vertical integration, independent directors, past performance and artificial intelligence.

When death benefits include life insurance

SMSF trustees should understand the tax consequences when death benefits include insurance proceeds because it can vary greatly according to circumstances, and these should be planned for in advance.

Financial advisers not allowed to advise

Most financial advisers are forced to use Approved Product Lists, model portfolios, procedures for Statements of Advice, rules of their Professional Indemnity Insurance ... but what about independent advice?

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The growing debt burden of retiring Australians

More Australians are retiring with larger mortgages and less super. This paper explores how unlocking housing wealth can help ease the nation’s growing retirement cashflow crunch.

LICs vs ETFs – which perform best?

With investor sentiment shifting and ETFs surging ahead, we pit Australia’s biggest LICs against their ETF rivals to see which delivers better returns over the short and long term. The results are revealing.

Warren Buffett's final lesson

I’ve long seen Buffett as a flawed genius: a great investor though a man with shortcomings. With his final letter to Berkshire shareholders, I reflect on how my views of Buffett have changed and the legacy he leaves.

Family trusts: Are they still worth it?

Family trusts remain a core structure for wealth management, but rising ATO scrutiny and complex compliance raise questions about their ongoing value. Are the benefits still worth the administrative burden?

13 ways to save money on your tax - legally

Thoughtful tax planning is a cornerstone of successful investing. This highlights 13 legal ways that you can reduce tax, preserve capital, and enhance long-term wealth across super, property, and shares.

Why it’s time to ditch the retirement journey

Retirement isn’t a clean financial arc. Income shocks, health costs and family pressures hit at random, exposing the limits of age-based planning and the myth of a predictable “retirement journey".

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