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Saturday, 28 November 2020
Recently trending The creator of the 4% rule and his own retirementWelcome to Firstlinks Edition 383Seven items your estate plan may have left outGraeme Shaw on why investing is at a pivotal momentAlex Vynokur: ETFs deliver what’s written on the can
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The Australian retirement funding system relies on three pillars: the age pension, superannuation and voluntary savings. Most retirees have their wealth tied up in the family home, so what role does it play?
In retirement, we still want to reduce stock volatility while generating cash flows. The two needs have not changed, but the reward expected in the old days from interest payments has gone. What should we do?
On the surface, a diversified fund looks the same as an SMSF with the same asset allocations. But to fund retirement, a member must sell units in the fund, whereas the cash balance is used in an SMSF.
Super counts for only 20% of the wealth of Australians. For retirement incomes, most younger people today will still receive most of their income from the age pension when they retire in three decades’ time.
The family home is the bedrock on which many retirement plans sit, with special tax and social security benefits. Many products generate an income stream from the home to make retirement more comfortable.
Most Australians are comfortable in retirement provided they own their homes. We’re failing retirees who rent but we also need to include more of the family home in the pension assets test.
Anyone can do their own personal investing, but what makes the skill required different from other professions? It's not easy even for the experts to consistently beat the market.
Do you risk paying a lot of tax in accumulation phase? Or, if you're in retirement phase, do you face the risk of outliving your asset pool? Two key things to consider in the low-rate world of today.
A shock to a portfolio at the wrong time can compromise a retirement plan where cash must be withdrawn each year. There are funds which attempt to trade some of the upside to reduce the downside.
The pre-Boomer generations faced global wars and depressions, but Australians born after 1946 have enjoyed prosperity. Superannuation, education, strong markets and surging property prices locked in gains.
We cannot see into the future, but here are some general guidelines on how much to save in super, and then how much you can spend to enjoy a good retirement. Start as soon as possible.
Many retirees simply drawdown the minimum amount allowed under the pension rules. While their money may last longer than using other strategies, is a frugal lifestyle the best way to live in later years?
The 4% withdrawal rate in retirement is an industry standard, a level where a retiree could be confident of not running out of money. Its creator Bill Bengen explains its use in this interview with Michael Kitces.
One of the downsides of Donald Trump commanding the headlines is that we skim over other significant issues. For example, few Australians read the China Daily News or coverage of its contents, missing official statements that are terrifying hundreds of Australian producers. China says Australia will 'pay tremendously' for its recent lack of respect.
Most people pay cursory attention to estate planning, limited to a will and maybe a chat with the children. Those who want to make their intentions clearer and easier for others should check these quick tips.
Company profits have not improved for many years but higher valuations have been driven by falling rates and excess liquidity. Conditions do not suit a value and contrarian manager but here are some opportunities.
Exchange Traded Funds have moved well beyond indexes to a range of sectors, themes, smart beta and active. They are attracting strong flows from both experienced investors and newcomers.
A mid-pandemic survey of over 1,000 people near or in retirement found three in four are not confident how long their money will last. Only 18% felt their money was safe during a strong economic downturn.