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Edition: 291

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Cuffelinks Newsletter Edition 291

  • 1 February 2019

Value of forecasts, bond face-off: Chin versus Rochford, know what you own, Howard Marks on tax, ASX trends, deluded expectations, tax notices coming?

Government bonds always have a role in diversified portfolios

Government bonds do not feature in most retail portfolios, but they carry defensive qualities with income to offset the higher risks in other asset allocations. Are they always worth including?

Why bother investing in government bonds?

Government bonds produced good returns last year, but at the current starting position of lower rates, the cost of defensiveness is probably a limited payoff.

Know what you own in complex markets

In some markets, the sheer volume of money flows into both good and bad companies, but when tougher conditions inevitably come, it's the quality earnings that sustain.

Trading trends feature global moves

Notwithstanding the popularity of ETFs, Australians are increasingly trading directly on foreign exchanges as online brokers make execution easier. But traditional local names remain popular.

Great investment expectations are deluded

Many investors are deluding themselves expecting high returns without taking risks, and it has poor consequences for retirement planning and setting goals. It pays to be more realistic.

Is a Division 293 tax notice coming your way?

It sounds arcane but it could be costly. For the first time, about 44,000 individuals will receive their first Division 293 notice early in 2019, and it will surprise many.

Marks and the tax system explained in beer

In his latest memo to clients, Oaktree's Howard Marks quotes the popular 'beer' example to explain the tax system, and we reproduce it here.

Most viewed in recent weeks

The strange effect of the 30% minimum capital gains tax

The 30% minimum tax on capital gains sits at the heart of the budget's proposed reforms. Yet the mechanics reveal anomalies that introduce unexpected distortions that raise questions about its design.

Does your will qualify for the discretionary testamentary trust exemption?

Treasury has confirmed the exemption many families were hoping for. But buried in the fine print are two conditions that could leave some wills on the wrong side of the exemption, despite years of careful planning.

Ranking three common retirement strategies

The defining challenge of retirement isn't just about building wealth, it's about converting your lifetime savings into sustainable income. A holistic understanding of different strategies can improve long-term outcomes.

Are you making these SMSF mistakes?

After four decades advising investors, there are a few common mistakes I've seen SMSF investors make. From holding too much cash and chasing yield to overtrading and trusting tips. Are these errors costing you?

Why Australian shares are falling behind the world

Australia’s market boasts a long record of outperformance, but recent results tell a different story. Is the ASX’s lagging performance a temporary setback or evidence that structural forces will keep global markets ahead?

Australia has saved $4.5 trillion for retirement. Here's what matters more

Most Australians approaching retirement can tell you the exact dollar value of their super account. But success depends on more than a sizeable balance. Here's four key questions to ask yourself at the start of the financial year. 

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