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Edition: 90

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Edition 90

  • 28 November 2014

Learn from last month's market activity, disruptive times for super, FoFA to date and Best Interest Duty, the 1 in 100 year event, and the use of currency hedges.

Reflections on markets in October 2014

October 2014 could be filed away as another month of reasonably normal returns. However if you lived through it day-to-day, there were lots of events and volatility, including somewhat of a ‘mini-panic’.

Sustainability of the super system in a time of disruption

It could be said that the super system is always facing disruption. As the system grows it will be constantly reviewed, scrutinised and changed, and industry participants should work together for the collective good.

FoFA is not in anyone’s best interests now

Government plans to amend FoFA are in tatters, due mainly to ill-informed comments about the nature of financial advice. 'Best interests duty' goes way beyond 'duty of care' used in other professions.

The great myth of the ‘1 in 100 year’ event

How many times do we hear that a ‘1 in 100 year’ event has occurred? Weather and financial market events in particular seem to have occurred far more than once in the last 100 years.

Currency hedging for international equity portfolios

With recent volatility in the value of the Australian dollar, investor attention is drawn to the topic of currency hedging. What impact does currency have on an international equity portfolio for an Australian investor?

Most viewed in recent weeks

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.

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. 

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.

Is it time to bail on Australian stocks?

For generations, Australian investors have backed banks, miners and dividends. But has that loyalty come at a cost? A look at the numbers raises an uncomfortable question about where future returns will come from.

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