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Edition: 504

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Welcome to Firstlinks Edition 504 with weekend update

  • 13 April 2023
  • 23

In one month, on 9 May 2023, Treasurer Jim Chalmers will deliver the Federal Budget for 2023/24. Early hints give a focus on fiscal consolidation and inequality, but what do those words mean? Does the Treasurer's 'values-based capitalism' suggest a reforming agenda is coming, or will politics intervene? And if Jamie Dimon and Tim Congdon are right, we need to prepare for storm clouds.

Jamie Dimon on move from virtuous to vicious cycle

Jamie Dimon of JP Morgan is the most powerful commercial banker in the world, and his just-released letter to shareholders warns that while the current economy looks fine, the storm clouds ahead differ from the past.

Are you better off in a large superannuation fund?

Underpinning the current wave of consolidation amongst Australian super funds is the belief that it helps to be big. Is this really the case and is there any advantage in being a member of a large super fund?

Falling money supply points to recession, and maybe severe

There is a connection between the money supply and the economy. The quantity of money has fallen quickly (and negative in the US), pointing to a recession in 2023. Inflation will head towards the 2% target in 2024.

How to weight companies in a successful stock portfolio

Outperforming over the long term doesn't solely depend on the stocks you select. Focus on how much you could lose relative to how much you could gain to determine how to weight stocks in your portfolio.

Planning to make your money last forever

Most people do not spend enough time thinking about achieving the best outcomes from their estate or gifts and loans before they die. Consider a trust to look after the needs of all your descendants, forever.

Global ETF trends coming soon to Australia

In Australia and globally, Exchange Traded Funds (ETFs) continue to grow rapidly. A new report suggests investors can expect more products in active ETFs, alternative strategies, cryptocurrency and ESG.

Should retirees forget about the 4% withdrawal rule?

When evaluating investment yields or retiree-withdrawal rates, consider not only the numerator’s percentage, but also the denominator’s effect. Doing so will lead to the only path that truly matters: the dollar trail.

Most viewed in recent weeks

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.

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.

The nuts and bolts of testamentary trusts

Unlike family trusts, testamentary trusts are activated posthumously, empowering you to exert post-death control over your assets. Learn how testamentary trusts offer unique benefits and protective measures.

9 lessons from 2024

Key lessons include expensive stocks can always get more expensive, Bitcoin is our tulip mania, follow the smart money, the young are coming with pitchforks on housing, and the importance of staying invested.

The 20 most popular articles of 2024

Check out the most-read Firstlinks articles from 2024. From '16 ASX stocks to buy and hold forever', to 'The best strategy to build income for life', and 'Where baby boomer wealth will end up', there's something for all.

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