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Edition: 475

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Welcome to Firstlinks Edition 475 with weekend update

  • 15 September 2022
  • 3

The 2022 calendar year will include two Federal Budgets, and despite a gap of only seven months, they are framed against different backgrounds. The Treasurer will give some cost-of-living relief contradicting the Reserve Bank desire to control spending. On Friday, Governor Philip Lowe asked how the nation would pay for all these promises. 

Survey: What do you think about these critical policies?

The first Labor Budget in a decade comes at a critical time for the new government, facing policy decisions on many fronts. Take our Reader Survey on these six questions and let us know what you would do.

Meg on SMSFs: my own reasons for early SMSF establishment

In response to a previous article on delaying establishing an SMSF, Meg explains why she started early, long before she began in the SMSF industry. Anyone who expects to build a decent super balance should think ahead.

Super performance based on fund size, risk and unlisted assets

In FY22, what drove the strongest superannuation performers, and how does size of the fund, the level of risk or investments in unlisted assets affect the outcome? They are major challenges to performance tests.

S&P default rates and the risks in bond investing

As interest rates rise, more investors are attracted to bonds for income. What is the probability of default on investment-grade and below credits that might take the shine off what look like attractive returns? 

The most vital question ever put to me as a portfolio adviser

By focusing on an individual rather than a group, professional investors get closer to the people they are trying to serve. Too many client meetings focus on the markets and not enough on meeting client goals.

Will a high CPI 'inflate away your debt'?

It is argued that governments will 'inflate away their debt', but does this work for households? We asked four economists whether borrowers should worry less about rising inflation as it will erode the value of debt.

Superannuation funds should be long-term lenders

It makes sense to have long-term savings directed to financing long-term investments and short-term savings (which involve liquidity risk for the institutions accepting them) invested in shorter term investments.

Most viewed in recent weeks

Vale Graham Hand

It’s with heavy hearts that we announce Firstlinks’ co-founder and former Managing Editor, Graham Hand, has died aged 66. Graham was a legendary figure in the finance industry and here are three tributes to him.

Australian stocks will crush housing over the next decade, one year on

Last year, I wrote an article suggesting returns from ASX stocks would trample those from housing over the next decade. One year later, this is an update on how that forecast is going and what's changed since.

Avoiding wealth transfer pitfalls

Australia is in the early throes of an intergenerational wealth transfer worth an estimated $3.5 trillion. Here's a case study highlighting some of the challenges with transferring wealth between generations.

Taxpayers betrayed by Future Fund debacle

The Future Fund's original purpose was to meet the unfunded liabilities of Commonwealth defined benefit schemes. These liabilities have ballooned to an estimated $290 billion and taxpayers continue to be treated like fools.

Australia’s shameful super gap

ASFA provides a key guide for how much you will need to live on in retirement. Unfortunately it has many deficiencies, and the averages don't tell the full story of the growing gender superannuation gap.

Looking beyond banks for dividend income

The Big Four banks have had an extraordinary run and it’s left income investors with a conundrum: to stick with them even though they now offer relatively low dividend yields and limited growth prospects or to look elsewhere.

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