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Edition: 58

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Edition 58

  • 17 April 2014

Demographics, the ageing population and adverse impacts on economic growth, don't overlook risk in portfolios, bonds and inflation risk and pension reform.

The ‘new normal’ and demographic change

Using interactive graphics, we can model the impact of changing demographics on economic growth for all major countries. Will lower growth become the 'new normal' due to an ageing population?

Mind the (expectations) gap: demographic trends and GDP

If we expect government policies to deliver implausible growth when a demographic tailwind has become a headwind, we'll have temporary ‘growth’ with debt-financed consumption, with longer term adverse consequences.

Think about risks as well as returns

We focus far more on the return from our investments rather than the risk, and we should watch for leverage or high risk-taking and expect to be rewarded for it to pay for the added risk.

Bonds have a role in managing inflation risks

Investors should not shun bonds in their portfolios due to a misunderstanding about the potential for earnings to grow at least in line with inflation. Fixed income has a role in inflation risk management.

Age pension reform: income taper change is unlikely

Tapering is the rate at which pensions reduce as other sources of income increase. A change is unlikely to make it onto Joe Hockey's list of pensions amendments in the upcoming budget.

Most viewed in recent weeks

Noel Whittaker’s take on the budget

Marketed as a fix for inequality and housing affordability, the latest budget instead delivers a tangle of tax changes that leave everyday Australians worse off.

Australia has no death duties. Technically.

Australia may not levy formal death duties, but a growing web of tax measures is quietly shaping what wealth passes between generations. Now, the 2026 budget adds another layer.

Lithium's rally is real this time – but no-one trusts it

The lithium rally mirrors the early-2010s tech stock surge, with demand set to double by 2030. Supply has been slow to respond, creating a market deficit for future tech like humanoid robotics and solid-state batteries.

Welcome to Firstlinks Edition 662 with weekend update

The debate over the budget is increasingly shaped by frustration and perceptions of unfairness, rather than clear-eyed assessment of policy outcomes.

How inflation is quietly moving the goalposts on retirement

Inflation doesn’t just raise today’s bills - it quietly increases the amount needed to retire, while simultaneously making it harder to save. Three steps to take before June 30th to improve retirement outcomes.

How to minimise tax with a will

Inheritance tax implications in Australia may surprise some, as poor estate planning without proper wills or trusts can lead to costly tax bills and delays for beneficiaries.

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