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Edition: 176

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Edition 176

  • 7 October 2016

The other side of the criticisms of banks at this week's parliamentary hearings is that millions of Australians have a vested interest in the banks maintaining their high dividends. Even those without a direct holding have a large proportion of their super in the Big 4. Perhaps it's just as well that proceedings ended in a political draw, while the bank executives left unscathed.

High yields may ignore fundamental weakness

Investors chasing high yielding stocks without considering the fundamentals risk falling into the 'income trap', where weak businesses are eventually forced to reduce their dividends.

Focus on LIC dividend sustainability

There are many LICs with current dividend yields above the average of 4.4%, often fully franked, and there are ways to know whether the dividend is likely to be sustainable. Not all LICs are managed the same way.

Six capital gains tax and depreciation facts for property investors

The tax treatment of depreciation and capital gains from the sale of property are important parts of the economic return, so know what happens when a CGT event is triggered.

Why traditional asset allocators get low returns

Family offices and institutional asset allocators select their fund managers based on different factors, and it influences the quality and outcomes of their decisions.

You want an inquiry? Have one on Australian real estate

There are many questions surrounding the state of Australian real estate - affordability, foreign ownership, housing stock, population growth, and more. Perhaps an inquiry into housing is long overdue.

ASIC creates a level playing field on fees

An explanation of ASIC's new fee disclosure guidelines that come into effect from February 2017. The changes promise to make comparing funds and fees much easier for investors.

What role should hedge funds play now?

After some poor experiences during the GFC, hedge funds offering uncorrelated returns have greater appeal as traditional markets struggle, but don't pay up for simple market exposure.

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Division 296: the initial moves to make before the windows close

What if the best superannuation strategy isn't about earning more, but acting before your options disappear? Several overlooked planning windows are narrowing, with consequences that can last for decades.

The retirement scorecard: how many of these questions can you answer?

From the maths of retirement, estimating spending and picking the right asset allocation to survive a poor decade, here are the questions every retiree – current or future – should be able to answer for themselves.

Testamentary trusts: Treasury has picked the wrong reading

A decades-old estate planning tool has survived one tax crackdown only to be caught by another. The surprise isn't who the reform is targeting, but who could end up paying the price for drafting choices made years ago.

Superannuation’s structural failings

Politicians are fighting over access to super, but they may be arguing about the wrong thing. The system’s three fundamental flaws have been hiding in plain sight for decades, costing Australians far more than they realise.

Avoid unnecessary CGT with this estate planning clause

A simple estate plan can create a ticking time bomb. One overlooked clause can pit spouses against children, delay inheritances, and potentially leave a family facing an unexpected tax bill worth hundreds of thousands of dollars.

Higher yields are creating opportunities in global bonds

Bond markets are adjusting to a new reality, but not in the ways investors expect. With markets repricing and capital competing for attention, investors may need to rethink where resilience and opportunity lie. 

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