We all get bombarded with information from every source possible and frankly, it's too much. Even if you haven't already flicked it into spam you probably don't have time to read it. We call it Information Overload. So, on this page we've selected big picture news items we think are relevant and of interest to our clients.
Lifecycle theory is one of the more exciting and applicable research fields in financial academia, yet it receives little discussion in Australia’s superannuation industry. This is unfortunate as the findings have the potential to improve outcomes for Australian households. The insights from Lifecycle theory are full of common sense and are valuable to managers of superannuation funds, financial planners, individuals managing their own money and the financial services industry at large. In this article, I will introduce the background and framework of Lifecycle theory. In subsequent articles, I will return to this framework to discuss specific issues.
The RBA today announced another interest rate cut to a 3 ½ year low of three percent (3%) as a buffer against weak commodities and a slowing economy. Some economists are expecting this to be the last cut in the current economic cycle.
Buried deep in the Government's Mid-Year Budget and Fiscal Outlook papers there is an announcement that will bring a major smile to the faces of SMSF trustees. Until now, in the absence of an eligible reversionary pension beneficiary, pensions ceased on the death of the member. The subsequent sale of Fund assets to pay out the requisite lump sum benefit then occurred in the accumulation stage resulting in a net 10% capital gains tax bill based on the original purchase price of the asset. Some Funds in the past have suffered substantial tax much to the chagrin of the lump sum beneficiaries.
Jerry Miccolis, co-author of “Asset Allocation For Dummies” and chief investment officer at the wealth advisory company Brinton Eaton in New Jersey, has shared his list of 10 mistakes investors should avoid. According to Mr Miccolis these are: