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Edition: 50

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Edition 50

  • 21 February 2014

Predicting your own life expectancy, planning ahead for age pension reform, changes to aged care rules from 1 July, investing in equities based on reinvestment rates, and more SMSF myths debunked.

How long are you really likely to live?

Longer life expectancy means more of us will be living for several decades after we ‘retire’ or stop paid employment. Earning 3-4% in term deposits from age 60 will not be enough if you're still alive at 90, 100, or 120!

Age pension reform and its consequences for financial plans

It's highly likely that the age pension will experience future reforms. A useful financial plan should model a reduction in pensions, rather than making an assumption that it'll be there when the money runs out.

Face up to aged care changes now or face higher costs

Understanding aged care accommodation and the cost is an absolute minefield. The aged care rules are changing on 1 July 2014, and many people have four months to make plans before they are hit by higher costs.

Equity income investors should focus on reinvestment rates

The biggest factor over the past year in Australian equity markets has been investors focussing on dividend yields. Another, perhaps more important, issue is how much a good company reinvests in itself.

More SMSF myths debunked

Continuing from last week's article on superannuation myths, here's another five myths relating SMSFs. Separating fact from fiction is a good first step towards effective discussion and informed policy.

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