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Edition: 77

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Edition 77

  • 29 August 2014

Economic policy outcomes for US & Australia, insurance within super, performance of trend-following funds, beware of unexercised LIC options, SMSF interests and the FSI, and behind revenue growth figures.

Policy pincers in Australia and the US

Unemployment and inflation seem to be heading in different directions in Australia and the United States, but the outcomes for interest rates and equity markets might be the same.

Does insurance belong in super?

There is little written about why insurance came to be included in the superannuation system. It might address the problem of under-insurance but it's a poor fit with superannuation's core purpose of funding retirement.

Is this time different for trend-following funds?

Most trend-following funds (managed futures or CTAs) have performed poorly recently, and investors are asking if they will work again. History shows how crisis and non-crisis periods influence this investment style.

Watch those unexercised options in LICs

Listed Investment Companies have enjoyed great investor support in the last year, but the structure usually comes with 'free' options to buy more shares. The impact of these options can trap the unwary.

Why the FSI should interest SMSF members

Every SMSF owner should take an interest in David Murray’s Financial System Inquiry because it asks some fundamental questions including issues around limitations, tax breaks, contribution limits and more.

There’s growth, and then there’s growth

If it looks like a duck and quacks like a duck, is it necessarily a duck? That’s the mindset that is sometimes required to understand the revenue growth numbers being reported by companies at this time of year.

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.

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.

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