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Category: Articles

Trustees seek yield safety

PORTFOLIO POINT: Eureka readers respond: “We’ve had enough of equities. We want security of return, not higher returns.” It wasn’t unanimous, but the consensus was certainly overwhelming. Eureka Report readers, specifically SMSF trustees, have had enough – for now, at least – of the “cult of equities”. Given the choice of a stable, middling return, […]

Has superannuation become a good vehicle to invest in residential real estate? Why or why not?

Jennifer Hawkins looks good in anything, right? But how much hotter is she in a swimsuit? Similarly, residential property has always looked sexy in super. Super, like a bathing cozzie, is a skimpy tax environment. Recent superannuation rule changes have put property in a bikini. Now, it’s smokin’ hot! The hottest super model of the […]

Redraw, offset best by all accounts

What do Bob Hawke, Lance Armstrong and Bill Clinton have in common? All are very smart people who have said some really dumb things. Remember these classics? “I have never doped.” “I did not have sexual relations with that woman.” “By 1990, no Australian child will be living in poverty.” On a stupid scale of […]

Cashed out

PORTFOLIO POINT: SMSF trustees missed the equity and property boats in the September quarter. Why did you hold back? It’s no secret that the last financial year was a disappointment for investors. The 10%-ish mini-crash in Australian equities in May and June ruined what would have otherwise been a reasonable year. Come 1 July, markets […]

Ethical investments: Are they good for your wallet or just your soul, and how do you know what ethical is?

HIPPY alert! Sound the warning sirens! Whooop! Whooop! Whooop! Be careful when inviting hippies into your investment world. You might get a little more than “peace”, “free love” and a sitar being gently played by Ravi Shankar, if you know what I mean. Janis Joplin, Cheech & Chong and Timothy Leary are all are highly […]

Tapping into super wraps

PORTFOLIO POINT: Considering a SMSF? Would you like to “try before you buy”? Consider a “wrap” test drive. There was a big hoo-ha in superannuation industry circles last week about accountants’ role in the setting up of self-managed super funds. The facts show that accountants often have an instrumental role in setting up the SMSFs. […]

What is the rudest thing somebody has said to you about money? How did you react?

“Can’t you afford to drive something better than that? What the hell is it?” (One expletive has been downgraded from that quote.) The Holden Epica is tough to recognise, because so few have sold. It sorta resembles a Commodore from “Honey, I Shrunk the Kids”. Or a Cruze beefed up on Hulk Hogan’s cast-off ’roids. […]

A super change to avoid death and taxes

PORTFOLIO POINT: A death-tax removed! A major tax win for super pensions was a pleasant surprise in the recent mini-budget. How often would a government tell the Tax Office to back off on legitimate revenue raising? In terms of animal species, it would certainly be classed as “rare”. It would probably be considered “endangered” if […]

It’s easy to suffer from information overload these days. Where can your generation get the best free advice?

The “best” advice is rarely free. And “free” advice is rarely the best. To quote Tom Hanks in Apollo 13, “Houston, we have a problem”. The best advice is tailored to your situation. And that’s generally going to involve a financial adviser and a cost. It’s one-on-one stuff. Advisers don’t work for free, but are […]

How your children keep you poor

I’m guessing that when a small child urinates in a public pool, as they do, they’re thinking: “Hey, who’s going to notice one little wee in a pool this big?” “Even if I peed 2.7 times, who’s gonna know?” The little brats, sadly, are spot on. We won’t notice. The problem with public pools is […]