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Edition: 258

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Cuffelinks Newsletter Edition 258

  • 15 June 2018

Dover and Prospa ASIC casualties, high retiree tax rates, comparing LICs, EOFY strategies, credit markets, aged care, tax donations, SMSF assets, tech.

Why are high marginal tax rates bad for workers but good for retirees?

Pensioners with assets that fall within the range of the Assets Test taper are subject to effective marginal tax rates in excess of 100%. In fact, retirees face many higher marginal rates than workers.

Trust and why not all LICs are created equally

A recent global survey revealed a lack of trust in investment firms. There are many areas for improvement such as disclosure, transparency, and conflicts of interest, and different LIC structures are examples.

9 strategies to make the most of EOFY 2018

There are strategies for this EOFY which could reduce your tax bill while supporting other objectives such as charitable giving, insurances, personal or spouse super contributions, or asset purchases for business.

Can Australian credit continue to perform?

Australian credit markets have had a good run, and any investor tempted to exit the sector should consider whether a move now is too early in the cycle. A period of range-bound stability is the more likely outcome.

Budget 2018 puts aged care at a tipping point

Aged care measures announced in the Budget go only part of the way to improving the system. With a waiting list for Home Care packages exceeding 100,000, we need more effective change.

Maximising the impact of charitable giving

An ancillary sub-fund is a quick and inexpensive way to secure a tax deduction in advance of researching and selecting the right charities to support at tax time. Includes Chris Cuffe video.

SMSFs allocating to managed funds and global

SMSFs have long lagged institutional superannuation funds in allocating to global equities, but SMSFs trustees increasingly realise the best opportunities lie overseas, and they use managed funds as the vehicle.

Why the tech giants still impress

Most S&P500 companies are doing well with recent reported earnings above expectations. In the tech sector, the Big Five (Apple, Amazon, Microsoft, Facebook, Alphabet) have also diversified their income sources.

Most viewed in recent weeks

Why have Australian living standards 'fallen' and how do we fix it?

For the last few years there has been much talk of a 'cost-of-living' crisis in Australia and of 'falling living standards'. Lately this has flared up again with the pickup in inflation resulting in a renewed fall in real wages.

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. 

Four options for an income investor’s next dollar

What if Australia’s golden age of dividends is ending? Rather than overhaul your portfolio, it may be worth considering where new capital can work harder. I discuss four income strategies and the trade-offs behind each.

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.

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.

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.

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