Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Register

31 August 2026

Home / 234

Summer Series, Guest Editor, Noel Whittaker

At a time when we are overwhelmed with information, getting back to basics is crucial. This desire to focus on the fundamentals has guided the selection of my favourite Cuffelinks articles, mainly from 2017.

Whenever I give a seminar, many of the questions are from people who want to know where the stock market is going, where interest rates are going, where commodity prices are going and where they should invest next. My reply is always that if they focus on things they can control, they won't need to be unduly worried about things they can't.

This is why the article on Howard Marks is so important. It goes right back to basic principles, explains the dangers of forecasting, and how many of them are wrong.

This leads naturally to the next article by Don Stammer. Just before the 2016 presidential elections, I received many emails and calls from people telling me proudly they had cashed in their portfolio "in case Trump got elected". And we know what a bad decision that turned out to be.

In my 20 Commandments of Wealth for Retirees (also available as a PDF by free download from my website) I point out that one of the worst enemies of the investor is the media – it only focuses on bad and pessimistic news.

The Labor attack on family trusts showed a deplorable lack of knowledge about how they work. It also had the potential to scare people away from what has long been one of the most attractive and effective entities for minimising tax legally, and protecting assets. Therefore, Sam Wylie’s article was timely inasmuch as it explained in a simple way how trusts work and the benefits they could bring to investors.

As I have said many times, the main enemy of an investor is not the markets or taxation, it is simply ignorance. Having reached the ripe old age of 78, my focus has moved from acquiring assets for myself to spending my money in a way that enables me to leave a legacy. And all the research shows that giving money to worthy causes produces enormous personal happiness and satisfaction.

After I read the article by Antonia Ruffell, I phoned Chris Cuffe for advice on what my next step should be. This led me to a meeting with Antonia, and subsequently to starting my own endowment fund. I am delighted with the process.

We are now 30 years from the 1987 crash. For many of us old grey hairs it is still memorable, but most Australians who have reached investing age know nothing about it. Ashley Owen has been a friend of mine for many years, and is one of the most knowledgeable people about markets I have ever met. This article is an outstanding contribution to the pool of knowledge that any successful investor needs to have.

Noel Whittaker, Guest Editor

Noel Whittaker is one of Australia's foremost authorities on personal finance and a best-selling author of many books including Making Money Made Simple. See www.noelwhittaker.com.au.

 

  •   10 January 2018
  • 8
  •      
  •   
8 Comments
John Bannister
January 10, 2018

On the family trusts article, costs of set up and operation must be taken into account.
Compliance costs on a company and trust structure will be at least $5,000 pa.

Also there is no reference to the Centrelink Controlled Private Trust or Income Tax Division 7A rules.

Geoffrey
January 11, 2018

The email you sent out where Noel Whittaker is the guest editor contains the following sentence,
"The Labor attack on family trusts showed a deplorable lack of knowledge about how they work."
I am interested in hearing yours and his opinions on investing, not on politics. Perhaps a more neutral tone might be better in the future.

Fred Randall
January 11, 2018

So people are offended by the truth now. What princesses we've become.

Stan
January 17, 2018

Your agreement with Noel Whittaker's opinion does not make it a "truth".It is possible that rather than Labor having a "deplorable lack of knowledge of how trusts work", they fully understand them and that is precisely why they want to remove them.

Alex
January 11, 2018

Noel, Sam Wylie’s article is fine as far as it goes (i.e. how trusts work), but it doesn’t address why they are allowed. I suggest this be the focus of another article. I expect it will be a very short article, explaining the appropriateness of a trust when an adult beneficiary is incapacitated from decision-making or where children are wards of the state, but otherwise observing the inappropriateness of such structures.

Best wishes, Alex

Neil
January 15, 2018

Noel, I'm left a little confused after re-reading Sam Wylie's article on how trusts work.
Not by the maths mind you, but by the appropriateness of such legal structures.
Are you really suggesting that allowing very wealthy people to achieve an effective tax rate of 13.5% (as in the example given) is a good thing for our society? If so, that's a pretty big nod to neoliberal ideology and as a regular reader of your columns it does surprise me a bit.

I understand that trusts may have their place in protecting business assets (farms are often given as an example), and in succession planning, but Sam's article didn't touch on these benefits.

James
January 16, 2018

People are just using a structure that is there, to legally minimise their tax. Human nature. Whether the structure is appropriate for use as described is a different matter, and up to governments to determine.

A bit like negative gearing. Can be good for those that elect to use it. Probably disadvantages those that don't, as less tax paid by some yet the amount required to run the country the same. Net winners and net losers.

I believe a lot of politicians use family trusts and/or negative gearing!!!

William
January 18, 2018

Trusts and Negative Gearing are minor when compared to the spectacular gains made by those who own and/or speculate in land, especially land with a high locational value.
These gains are largely untaxed and contribute to the transfer of unearned wealth to those lucky enough to own land in these locations. The next major collapse (a la 2008) will occur when there is excessive credit fuelled speculation in land - aided and abetted by the banks and other lenders.
Interested - For more information try googling Fred Harrison and Phillip J Anderson.

 

Leave a Comment:
Firstlinks is sponsored by:
banner

Most viewed in recent weeks

Are you making these SMSF mistakes?

After four decades advising investors, there are a few common mistakes I've seen SMSF investors make. From holding too much cash and chasing yield to overtrading and trusting tips. Are these errors costing you?

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.

Retirement spending is not one-size-fits-all

New data challenges the idea that Australians are underspending their super. The bigger issue may be helping retirees navigate complexity, make confident decisions and use their savings to support security, wellbeing and choice.

The missing link in the CGT debate

A little-noticed consequence of Labor’s tax changes could have implications well beyond investors’ tax bills. The issue raises bigger questions about incentives, capital allocation and the drivers of long-term economic growth.

Latest Updates

SMSF strategies

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.

The ageing ‘crisis’ has not and will not happen

Rising age dependency is frequently treated as a warning sign for economies. But when actual workforce participation is examined, a strikingly different picture emerges about ageing, productivity and economic sustainability.

Retirement

How does the 4% rule stack up?

The 4% rule has long been retirement's gold standard. But after a difficult period for investors, fresh analysis suggests a more conservative approach may significantly improve the chances of making savings last.

Shares

Four charts that expose market concentration risk

Investors have recently been rewarded for backing market leaders, but history suggests this eventually comes at a cost. Now may be the time to review whether your portfolio is carrying unintended risks beneath the surface.

Investment strategies

The case for gearing beyond property

Most Australians gear into property but ignore shares. That may be a mistake. Used carefully, geared equity strategies can enhance long-term returns, reduce cash tied up in growth assets and support retirement income goals.

Economy

Australia's $1 trillion debt pile

The headlines exclaiming that Australian government debt has hit A$1 trillion and US government debt has hit $40 trillion has turned heads, but how serious are they really? Will Australia's mix of debt create challenges?

Economy

Has 100 years of growth made us any happier?

For decades, GDP has been the benchmark for economic success, but has it made us materially happier? If happiness does not rise in lockstep with prosperity, are we overlooking what constitutes a successful society?

Sponsors

Alliances

  • ASA-Logo-RGB-ActiveGreen-web.png

Site Map

About Firstlinks

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.