Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 245

Cuffelinks Newsletter Edition 245

  •   23 March 2018
  •      
  •   

We'll ignore the dispiriting interchange at the Royal Commission this week and start with a quotation on his life plan from Stephen Hawking, who died last week, which includes his 'retirement' planning:

"One, remember to look up at the stars and not down at your feet. Two, never give up work. Work gives you meaning and purpose and life is empty without it. Three, if you're lucky enough to find love, remember it is there and don't throw it away."

Data from the Australian Bureau of Statistics on retirement indicates about 3.6 million have 'retired from the labour force', although not always voluntarily. New research from Roy Morgansays 415,000 Australians intend to retire this year, up from 326,000 in 2008. That's a surprising 1,000 a day! The average age of intending retirement is rising quickly, especially for women. 


Source: Roy Morgan, as at December 2008 and December 2017.

Of course, 60 is the new 40. When I play football on Saturday, I take Voltaren with breakfast, top up with Panadol Osteo mid-morning, secure my ankles and shoulders with strapping tape, squeeze into Skins wear and use an elastic bandage on my right hamstring. My left shoulder and right knee have titanium pins. At the game, I massage with Dencorub before a stretching regime, then I try not to break anything for a couple of hours. Sunday I hobble around, Monday I go to the physio. Repeat. Millions of Australians over 60 aim to stay fit, travel and work and desperately hope they remain healthy as long as possible. 

Franking credit refunds

Labor's new policy has sparked a debate about who is rich and who pays tax, with ambiguous data that is confusing most people. On the ABC's Q&A programme this week, opposing politicians argued about the difference between income and taxable income, while the millennial on the panel admitted most of her generation don't understand the issue. Bernard Keane, writing in Crikey on 14 March 2018 said:

"This is about class war. It's a war waged by wealthy older Australians on lower-income Australians and younger Australians ... This will be a bare-knuckle brawl between a very powerful interest group in the electorate and a major political party, an intersection of policy virtue and raw political power. Buckle up."  

Wow. Explains why our articles last week received record numbers of comments. Warren Birdbuckles up and outlines why company tax is effectively a prepayment of tax for the shareholder, and the franking credit refund means the investor has paid too much tax based on their own personal tax rate. Brad Newcombe looks at the possible impact of the policy on hybrids.

Other articles this week     

Estelle Liu and David Bell warn that Treasury is developing plans that could make the superannuation retirement gap for women even worse. The impact on reversionary benefits and gender equality should have greater scrutiny. 

Still on super, Julie Steed offers some checks for anyone considering the new downsizer contributions, while Jeff Gebler asks why so many retirees spend less than the age pension.

On investing, Anthony Kirkham argues Australia is unlikely to follow US interest rate policy, and Jason Orthman and Mark Arnold see excellent opportunities with luxury goods manufacturers. James Freeman explores how behavioural biases can reduce market returns.

This week sadly saw the first person to lose their life after being hit by a driverless car, forcing Uber to abandon its testing. It makes the White Paper published last week on autonomous vehicles from AMP Capital even more relevant. Not a great week for tech with Facebook facing new regulations and its shares falling about 10%. In another timely White Paper, Magellanfocusses on big data, privacy and how companies are using your personal information.

Finally, a reminder that we provide a short online test with each edition for anyone wanting CPD hours for professional qualifications or training requirements. The tests are here. 

Graham Hand, Managing Editor

 

Edition 245 | 23 Mar 2018 | Editorial | Newsletter

 


 

Leave a Comment:

banner

Most viewed in recent weeks

Retirement is a risky business for most people

While encouraging people to draw down on their accumulated wealth in retirement might be good public policy, several million retirees disagree because they are purposefully conserving that capital. It’s time for a different approach.

The perfect portfolio for the next decade

This examines the performance of key asset classes and sub-sectors in 2024 and over longer timeframes, and the lessons that can be drawn for constructing an investment portfolio for the next decade.

UniSuper’s boss flags a potential correction ahead

The CIO of Australia’s fourth largest super fund by assets, John Pearce, suggests the odds favour a flat year for markets, with the possibility of a correction of 10% or more. However, he’ll use any dip as a buying opportunity.

The challenges with building a dividend portfolio

Getting regular, growing income from stocks is tougher with the dividend yield on the ASX nearing 25-year lows. Here are some conventional and not-so-conventional ideas for investors wanting to build a dividend portfolio.

How much do you need to retire?

Australians are used to hearing dire warnings that they don't have enough saved for a comfortable retirement. Yet most people need to save a lot less than you might think — as long as they meet an important condition.

Welcome to Firstlinks Edition 594 with weekend update

It’s well documented that many retirees draw down the minimum amount required and die with much of their super balances untouched. This explores the reasons why and some potential solutions to address the issue.

  • 16 January 2025

Latest Updates

Investment strategies

UniSuper’s boss flags a potential correction ahead

The CIO of Australia’s fourth largest super fund by assets, John Pearce, suggests the odds favour a flat year for markets, with the possibility of a correction of 10% or more. However, he’ll use any dip as a buying opportunity.

9 ways to fix Australia's housing crisis

Decades of policy failure have induced a fall in housing affordability. Unless painful changes are made, an underclass will emerge in a society that is supposed to boast the one of the world's highest standards of living.

Shares

Australia: why the chase for even higher dividend yields?

Australia boasts one of the world's highest dividend yielding sharemarkets, providing substantial benefits to investors and retirees. Despite this, individuals often stretch for even more yield, to their detriment.

Shares

MIGA – Make Income Great Again

The Australian sharemarket seems to be rewarding a number of unprofitable companies on the promise of future riches. Yet profits and cashflows still matter, as a recent case study of Domino's Pizza shows.

Shares

Mapping future US market returns

Exceptional returns from the US sharemarket over the past decade have driven by sales growth, margin expansion, rising valuations, and dividends. Predicting future returns requires careful consideration of these factors.

Shares

Read this before you go all in on US equities

US equities rule global markets, but history is littered with examples of markets that seemed invincible — until they weren’t. Diversification will be key for investor portfolios going forwards.

Property

What impact would scrapping stamp duty have on housing?

Increasing house prices pose challenges for housing affordability. This investigates the impact of stamp duty on the property market, and how removing the tax could help address several key issues.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.