If you think a testamentary trust is only for the wealthy, think again. A testamentary discretionary trust (TDT) does not make an inheritance tax-free, but what it can do, is change who is taxed on the income that the inheritance produces. Over a generation or two, that difference can potentially be worth hundreds of thousands and in some cases, ...
Bill Kelty and Paul Keating were in furious agreement just four years ago on the 30th anniversary of the introduction of compulsory super in 1992. In their joint – and expansive – interview with the Australian Financial Review, they confirmed their belief that the ‘super wars’ between Labor and the Coalition were now ‘dead and buried’.
Well so much for ...
Melbourne and Sydney home prices have sagged 7% from record highs, while prices nationally have slid 2%. As buyers wait for prices to fall further, auction clearance rates have dropped below the threshold of 60% that signals a market balanced between buyers and sellers. ANZ warns Sydney dwelling prices could slump 15% by the end of next year. Such is ...
Retirement requires a fundamental shift – to our lifestyles, finances, and mindset. After a lifetime of saving, we shift to decades of spending. This is a change that doesn’t come naturally for many of us. As we live longer, with retirement now spanning thirty years for the average Australian, knowing how much money we will need to fund our post-work ...
These days when you read the latest news or open up social media, it’s fairly common to be warned that things are about to get bad. Things you may often hear are: a recession is around the corner, markets are overpriced or the AI sector is about to flop. It’s like the never-ending laundry pile that sits in my house, it never really disappears.
Most of ...
When I was in my first year of university, I pulled up to an ATM to make a withdrawal. A man and his son were ahead of me in line and the kid turned to his father and asked if I was James Bond. This might be the high point of my life. I’ve been on this earth for a little more than 16,600 days. That was the first, only, and likely last time I have ever ...
“I’m worried about the bond market,” a friend who’s close to retirement texted the other day. After reading the hard-to-miss headlines about the weakness in global bonds, she was concerned about the fixed-income allocation that she has been building out over the past several years at the urging of her adviser.
I didn’t respond, “You’re doing it wrong!” ...
Australians appear to be far more pessimistic about retirement before they get there, than after they arrive.
The latest findings from Vanguard reveal that retirees were considerably more likely to express positive sentiment toward retirement than working-age Australians. In some respects, retirement may turn out better than many people fear.
The ...
In July I wrote about Treasury's consultation paper on the proposed 30% minimum tax on discretionary trusts, and the direction it set for testamentary trusts. The paper promised an exemption from the minimum tax and left the mechanics for later. Later has arrived. The exposure draft legislation is out, and it does two things a discussion paper could ...
Rebalancing has been one of the simplest rules in investing. Set your target asset allocation, let your portfolio move away from it as markets rise and fall, then periodically sell what has done well and buy what has lagged.
It sounds almost mechanical and this is why it works. Setting a structure instead of leaving buying and selling to chance can ...
Recent national accounts confirmed a disturbing reality for Australia: immigration-led population growth but flat-lined living standards.
Australia’s economic growth has been increasingly reliant on population growth rather than real reforms to improve productivity and living standards. This is not a new trend. It has been deteriorating for several ...
The market has rewarded investors for owning the companies that grew into today’s index leaders. But the next phase of the AI cycle may test whether owning the winners of the last cycle is enough. The active-passive investing debate is often framed around fees, market efficiency, and recent performance. Those issues matter, especially after a decade in ...
If you think a testamentary trust is only for the wealthy, think again. A testamentary discretionary trust (TDT) does not make an inheritance tax-free, but what it can do, is change who is taxed on the income that the inheritance produces. Over a generation or two, that difference can potentially be worth hundreds of thousands and in some cases, ...
Bill Kelty and Paul Keating were in furious agreement just four years ago on the 30th anniversary of the introduction of compulsory super in 1992. In their joint – and expansive – interview with the Australian Financial Review, they confirmed their belief that the ‘super wars’ between Labor and the Coalition were now ‘dead and buried’.
Well so much for ...
Melbourne and Sydney home prices have sagged 7% from record highs, while prices nationally have slid 2%. As buyers wait for prices to fall further, auction clearance rates have dropped below the threshold of 60% that signals a market balanced between buyers and sellers. ANZ warns Sydney dwelling prices could slump 15% by the end of next year. Such is ...
Retirement requires a fundamental shift – to our lifestyles, finances, and mindset. After a lifetime of saving, we shift to decades of spending. This is a change that doesn’t come naturally for many of us. As we live longer, with retirement now spanning thirty years for the average Australian, knowing how much money we will need to fund our post-work ...
These days when you read the latest news or open up social media, it’s fairly common to be warned that things are about to get bad. Things you may often hear are: a recession is around the corner, markets are overpriced or the AI sector is about to flop. It’s like the never-ending laundry pile that sits in my house, it never really disappears.
Most of ...
When I was in my first year of university, I pulled up to an ATM to make a withdrawal. A man and his son were ahead of me in line and the kid turned to his father and asked if I was James Bond. This might be the high point of my life. I’ve been on this earth for a little more than 16,600 days. That was the first, only, and likely last time I have ever ...
“I’m worried about the bond market,” a friend who’s close to retirement texted the other day. After reading the hard-to-miss headlines about the weakness in global bonds, she was concerned about the fixed-income allocation that she has been building out over the past several years at the urging of her adviser.
I didn’t respond, “You’re doing it wrong!” ...
Australians appear to be far more pessimistic about retirement before they get there, than after they arrive.
The latest findings from Vanguard reveal that retirees were considerably more likely to express positive sentiment toward retirement than working-age Australians. In some respects, retirement may turn out better than many people fear.
The ...
In July I wrote about Treasury's consultation paper on the proposed 30% minimum tax on discretionary trusts, and the direction it set for testamentary trusts. The paper promised an exemption from the minimum tax and left the mechanics for later. Later has arrived. The exposure draft legislation is out, and it does two things a discussion paper could ...
Rebalancing has been one of the simplest rules in investing. Set your target asset allocation, let your portfolio move away from it as markets rise and fall, then periodically sell what has done well and buy what has lagged.
It sounds almost mechanical and this is why it works. Setting a structure instead of leaving buying and selling to chance can ...
Recent national accounts confirmed a disturbing reality for Australia: immigration-led population growth but flat-lined living standards.
Australia’s economic growth has been increasingly reliant on population growth rather than real reforms to improve productivity and living standards. This is not a new trend. It has been deteriorating for several ...
The market has rewarded investors for owning the companies that grew into today’s index leaders. But the next phase of the AI cycle may test whether owning the winners of the last cycle is enough. The active-passive investing debate is often framed around fees, market efficiency, and recent performance. Those issues matter, especially after a decade in ...
