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Edition: 245

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Cuffelinks Newsletter Edition 245

  • 23 March 2018

Imputation credit class war, impact on hybrids, women losing super rights, retirees not spending, downsizer checks, rate prospects, luxury goods.

Back to basics shows franking credit refunds are fair

The current system is fundamentally fair as domestic shareholders pay tax on fully franked dividends at their own tax rate. This is what imputation should achieve and why we need franking credits refunded.

Women’s super needs protection of reversionary benefits

Treasury is designing guidelines for retirement products which virtually preclude reversionary benefits, and yet these usually accrue to women when the male partner with more superannuation dies.

Impact on hybrids of Labor’s franking policy

Doubts about the value of franking credits under Labor's proposed policy have already led to a rise in spreads on hybrids, which might throw up good investment opportunities.

Five reasons Australian rates unlikely to follow US

It's not long ago when Australian bond rates were well above US bond rates, and now they are the same in the 10 years. Factors affecting Australian monetary policy will not mirror US rises through 2018.

Four checks for super downsizer contributions

The new downsizer contribution legislation can assist older Australians to contribute to super by selling their main residence (without actually downsizing) but could affect their age pension.

Why do most retirees spend less than the age pension?

There are many unanswered questions about why retirees spend so little in retirement, but perhaps it is a form of insurance against longevity risk.

How to stay focussed in volatile markets

Many investors react poorly to market falls, although they should be accepted as frequent and part of investing. It’s best to know how you respond to your behavioural biases, and prepare for them in advance.

Investors profit from demand for luxury goods

There are more opportunities on offer in the larger and more diverse economies overseas, especially in companies with sizeable untapped market potential and an insulation from normal market forces.

Most viewed in recent weeks

2024/25 super thresholds – key changes and implications

The ATO has released all the superannuation rates and thresholds that will apply from 1 July 2024. Here's what’s changing and what’s not, and some key considerations and opportunities in the lead up to 30 June and beyond.

Five months on from cancer diagnosis

Life has radically shifted with my brain cancer, and I don’t know if it will ever be the same again. After decades of writing and a dozen years with Firstlinks, I still want to contribute, but exactly how and when I do that is unclear.

Is Australia ready for its population growth over the next decade?

Australia will have 3.7 million more people in a decade's time, though the growth won't be evenly distributed. Over 85s will see the fastest growth, while the number of younger people will barely rise. 

Welcome to Firstlinks Edition 552 with weekend update

Being rich is having a high-paying job and accumulating fancy houses and cars, while being wealthy is owning assets that provide passive income, as well as freedom and flexibility. Knowing the difference can reframe your life.

  • 21 March 2024

Why LICs may be close to bottoming

Investor disgust, consolidation, de-listings, price discounts, activist investors entering - it’s what typically happens at business cycle troughs, and it’s happening to LICs now. That may present a potential opportunity.

The public servants demanding $3m super tax exemption

The $3 million super tax will capture retired, and soon to retire, public servants and politicians who are members of defined benefit superannuation schemes. Lobbying efforts for exemptions to the tax are intensifying.

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