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Edition: 246

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Cuffelinks Newsletter Edition 246

  • 30 March 2018

It’s not just cricket, SMSF ‘pensions’ miss out, losing on logic alone, loss aversion, ETF growth, unwinding warnings, watch lower quality assets.

The spirit of the game applies to business, too

The principles behind the cricketing scandal that every Australian woke up to last Sunday are universal. In the wake of the Royal Commission's devastating findings, we should discuss how they apply to business.

Baggy Green summit was bottom of GFC

After test matches resumed in 1993, Australia held the upper hand and peaked at the bottom of the GFC. In stock markets, South Africa is edging it in US$ terms but killing it in local currencies.

Franking: never mind the logic, let’s obfuscate

The logic on Labor's franking policy demands an answer to one question: how does a franking credit refund differ from an employee receiving a PAYG refund after putting a tax return?

Tax-free super drives the politics of envy

Labor has been forced to exempt 'pensioners' from its franking credit refund policy, but the target remains the zero tax paid by large SMSFs in pension phase. That will sustain the class war.

Overcoming loss aversion in retirement income

Loss aversion means some people avoid annuities because a premature death may lead to a loss of capital, but lifetime annuities with death benefits aim to address this problem.

ETFs firmly established in the mainstream

The future of ETFs appears strong as the millennials increase their share of the investment pie, and the majority of financial advisers now comfortable with ETFs.

Unwinding is warning of late stages of boom

Market fundamentals are pointing toward an era of high volatility and lower returns, which have not been factored into current prices. Better to wait till there is blood in the streets rather than be fully invested.

Higher funding costs loom for lower quality assets

Higher volatility, higher funding costs, US rate rises with AUD interest rates decoupling, Quantitative Tightening, maturing bond reinvestment flows all point to a difficult 2018.

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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