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Edition: 84

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Edition 84

  • 17 October 2014

Nick Sherry calls for a less complex super system, the trading prices of LICs, who benefits from a weaker dollar, the liquidity of bonds, a bond Q&A, and the bank deposit guarantee not covering super deposits.

The most complex super system in the world

Australia has a world-class superannuation system, but it is also the most complex. From insurances to estate provisions to the many different forms of contributions and withdrawals, we should try to 'keep it simple'.

Peter Costello’s swipe at super funds

Extracts from Peter Costello's talk to super fund executives, where he criticises their self-interest and poor handling of the super policy debate. And from a prior speech, he backs Nick Sherry's call for simplicity.

Why LICs trade at premiums or discounts

The surge in popularity of listed investment companies has seen the erosion of the average price discount relative to net assets. Whether a LIC is likely to trade at a discount or a premium should inform your decision to invest.

Currency winners and losers

The Australian dollar has finally fallen against the currencies of most trading partners, and there will be companies that benefit or struggle at the new levels. If you think it will fall further, how do you take advantage?

Are bonds liquid?

There's no straightforward answer to the question of whether a bond is liquid. Unfortunately, at the time when you most want to sell, everyone is likely to be running for the exit.

Your bond questions answered

Cuffelinks reader, James, has some additional questions covering: bonds for capital gain or income, bonds in a growth strategy, passive vs active investing, unconstrained bond funds and duration risk.

Deposit guarantee bill passes but not for super funds

The government guarantee on deposits has finally been legislated and based on information released by APRA you'd be forgiven for assuming that superannuation bank deposits would be covered. Not necessarily.

Most viewed in recent weeks

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.

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.

Testamentary trusts post-budget: Estate planning, tax reform and the ‘death tax’ debate

Proposed Budget changes to taxation are casting new uncertainty over testamentary trusts, prompting closer scrutiny of estate planning structures and the real implications of reforms still taking shape.

Back to the future - Why indexing CGT is a good idea

A return to indexation of capital gains would be a fairer way to compensate households for the effects of inflation than the current discount. Importantly, it opens the door to future, broader reforms to stop the taxation of inflation.

Meg on SMSFs: The CGT changes don’t impact super but what about Div 296 tax decisions?

New CGT rules could tip the scales in the super vs non-super debate. For those facing the Division 296 tax, the case for withdrawing has gotten more complex. A "comparison rate" tool may help assess decisions.

High quality businesses are on sale

Beneath the dominance of the ASX's largest stocks, much of the market has been left behind. High-quality companies are now trading at levels rarely seen, offering opportunities for investors willing to look deeper.

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