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Edition: 142

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Edition 142

  • 12 February 2016

These jittery markets remind us how difficult it is to estimate how much anyone needs in superannuation. Few people know how long they will live and what returns they will achieve, and wealth is also held outside of super. It's not surprising that recent CSIRO research shows most retirees only draw down the mandated minimums on their pensions, as they live on other resources and attempt to preserve their super.

Safe withdrawal rates for Australian retirees

The notion of the '4% rule' for drawing retirement income was devised in a much different economic environment than today. 'Safe' withdrawal rates may not be safe enough if certainty is required.

How to read RBA interest rate decisions

The RBA follows a fairly standard formula when drafting its interest rate announcements each month and a keen observer might detect a change in view before an actual change in interest rates.

Do 'January' results foretell the full year for equities?

A final look at the 'January effect' to analyse whether the market's first month performance predicts the share market's likely year-end returns, and why Australia is different from the US.

China’s paradigm shift and why I’m (still) cautiously bullish

Recent economic volatility in China could signal an important social shift - one which could actually drive China’s future growth and transform the country’s economic model.

The merits of reversionary versus non-reversionary pensions

Due to the complexity of superannuation law, it can be easy for SMSF trustees to miss out on some opportunities, including the use of reversionary pensions for tax and estate planning benefits.

Hello from the other side of Asia

Sri Lanka, Bali and Singapore do not receive the focus of their Asian neighbours in China, India and Japan, but they are undergoing fascinating changes which warrant a closer and more personal visit.

Most viewed in recent weeks

16 ASX stocks to buy and hold forever, updated

This time last year, I highlighted 16 ASX stocks that investors could own indefinitely. One year on, I look at whether there should be any changes to the list of stocks as well as which companies are worth buying now. 

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.

2025-26 super thresholds – key changes and implications

The ABS recently released figures which are used to determine key superannuation rates and thresholds that will apply from 1 July 2025. This outlines the rates and thresholds that are changing and those that aren’t.  

Is Gen X ready for retirement?

With the arrival of the new year, the first members of ‘Generation X’ turned 60, marking the start of the MTV generation’s collective journey towards retirement. Are Gen Xers and our retirement system ready for the transition?

Why the $5.4 trillion wealth transfer is a generational tragedy

The intergenerational wealth transfer, largely driven by a housing boom, exacerbates economic inequality, stifles productivity, and impedes social mobility. Solutions lie in addressing the housing problem, not taxing wealth.

What Warren Buffett isn’t saying speaks volumes

Warren Buffett's annual shareholder letter has been fixture for avid investors for decades. In his latest letter, Buffett is reticent on many key topics, but his actions rather than words are sending clear signals to investors.

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