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Edition: 298

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Cuffelinks Firstlinks Edition 298

  • 22 March 2019

Housing impact of Labor’s negative gearing policy, Reserve Bank on cash and climate, getting out of Australia, Howard Marks, home equity, ESG, bonds.

Labor policies and the impact on housing

Labor's proposed policies on negative gearing and capital gains may come at a time when residential property is already weak, and it's unlikely to make buying a property easier for first-home buyers.

Vital signs: why now is the right time to clamp down on negative gearing

Negative gearing makes it hard for renters to become home owners. Now would be a pain-free time to wind it back.

Get me out of Australia?

Although some domestic cyclical companies currently offer value, the attraction of offshore growth is a key factor for investors, including strong Australian companies with global aspirations.

Review: Howard Marks on the market cycle

Howard Marks distills a lifetime of investing into his new book, and perhaps as a sign that he has really mastered the market cycle, he has just sold a majority stake in Oaktree to Brookfield.

Rethinking home equity and retirement funding

Using the value of home equity built up over many years seems an obvious part of retirement planning, but reverse mortgages have been unsuccessful in Australia. Is it time for a fourth pillar of retirement income?

ESG by new means, to new ends

There is no single and correct way for a company to adopt good ESG practices, but it's clear that major institutional investors are increasingly judging companies by ESG criteria.

More ETF users are younger and female with ESG focus

ETF users are younger and female, attracted to responsible investing, global equities and fixed income, as the sector continues to evolve rapidly. It will probably exceed $50 billion soon.

Briefly, on the role of government bonds

We like a good debate, and when two opposing views argued about the role of government bonds in a diversified portfolio, a veteran of 30 years in fixed interest stepped in as referee.

Most viewed in recent weeks

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. 

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.

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.

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.

Meg on SMSFs: What do we think about reversionary pensions these days?

Reversionary pensions have long been a staple of SMSF estate planning, but are they still the best option? Meg Heffron revisits a once-clear favourite and asks whether changing super rules have shifted the balance.

How does the 4% rule stack up?

The 4% rule has long been retirement's gold standard. But after a difficult period for investors, fresh analysis suggests a more conservative approach may significantly improve the chances of making savings last.

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