Welcome to Firstlinks Edition 592 with weekend update

Hi James,
Firstly, I think the current topics covered are pretty good, and I usually find an article or two to read each week.
I do have a question though.
I note that 'Firstlinks' is a Morningstar company, and so am often a little perplexed why an article like '16 ASX stocks to buy and hold forever' mentions a list of ASX stocks that have a low correlation to the monthly 'Morningstar Model Income Portfolio' of ASX stocks. On my quick count, there are just 3 stocks common across both lists (ASX, Aurizon, and Transurban).
I appreciate James that, as the author, you and the other writers have an independent view on what constitutes a list of stocks to buy and hold forever, but all the same, as a reader of both platforms, one would think that a list of stocks to 'buy and hold' across both publications would be more similar?
I would be interested to hear why it's not necessarily the case?
Regards
Ray

Hi Ray,

Two key differences between my article and the Morningstar Model Income Portfolio:

1. Morningstar's is specifically for income while '16 ASX stocks' isn't.
2. Timeframes. I chose stocks to hold forever. Morningstar's list is long term but not forever - they would change stocks in that list regularly.

One last point: Morningstar owns Firstlinks but it knows part of our secret sauce is having an independent point of view. If I advocated buying stocks that Morningstar hates, then there might be a problem, but otherwise, different opinions are encouraged.

Best,
James

Thanks James,
Yes, that independent 'Secret Sauce' concept makes sense to me.
Cheers
Ray

Clear step by step on what to do at age 65 with super contributions into employer plans. There have been from time to time some distal references to stop paying 15% when you don't have to. But its not spelled out whether that means call your employee super rep and say stop paying voluntary contributions into super? And assuming that is the case is the corollary to put the same amount into your pension account from after tax funds. Sum is there are several mentions across various articles about what should not be done, and what should be done, but not one that pulls it together. And understand that depends on your financial situation is the caveat but lay it out for one (most typical) to three (include high and low scenario)

Kevin L,

Good topic, thanks.

James

Investing during turbulent economic and geopolitical times. This would naturally include defensive investing

Hi James,
A proposed topic : General advice and overview of investing in US shares that are dividend paying stocks with long term capital growth and dividend growth prospects. Other key considerations like FX, pros and cons of most popular ways to transact (via standard broker or other?).
Thanks,
Jarrod

Jarrod,

I've been thinking about this topic for a while, so thanks for the prompt. You should see something on this during January.

Cheers,
James

Fantastic, thanks James!

The value of unlisted infrastructure investments in a SMSF, and factors that can effect short/long term performance. How do they consistently achieve
8 -10% gross returns?

Peter K,

I think with bonds losing popularity, infrastructure as a an alternative investment will continue to gain favour among investors, so it's a topic certainly worth exploring and some of our sponsors who are infrastructure experts should be able to answer your queries.

My suggested topic:
How are Reversionary Pensions set up in SMSFs and Industry funds? How do Reversionary pensions operate? Also how do the 1.6m or 1.7m or current 1.9m limits apply to the surviving spouse, especially when a pension has grown (through investment returns) to exceed these amounts? What are the practical steps required to be taken by a surviving spouse to part commute a Reversionary pension?

Hi Kevin,

I'll look into it. In the meantime, we have had several previous articles on reversionary pensions which might help you:

https://www.firstlinks.com.au/meg-smsfs-first-member-couple-dies
https://www.firstlinks.com.au/reversionary-versus-non-reversionary-income-streams
https://www.firstlinks.com.au/merits-of-reversionary-vs-non-reversionary-pensions
https://www.firstlinks.com.au/womens-super-reversionary-benefits

James

Super self help as a topic?
In order to avoid paying extorionately for advice when your Super fund changes hats from general advice, the answer may be readily available online.
For example, general advice may suggest recontribution to Super as a good idea.
Specifically, is it a good idea for you? You need to know if you are eligible, your TSB from your TBC etc.
If this already makes you glaze over, perhaps you should bite the bullet and pay for advice.

I recommend asking anyone who wants to comment to provide their full name. They can choose not to provide their full name, and then note they will have less people read their comments.

Hi Mark, There may be several reasons that someone may not want to give their full name. I always read all the comments as I get a lot out of them. It doesn't matter to me if they give their full name or a pseudonym.

Hi Mark,

I get why you'd want this, though not sure it would elevate the comments section if implemented. People have their reasons for not revealing their identities. And we approve all comments for publication, and occasionally edit them if warranted too.

James

The pros and cons of closing down a long held SMSF and transferring the superannuation fund into a custodial arrangement on an appropriate platform once the sole member has passed retirement age and is no longer earning personal exertion income and is no longer contributing concessional superannuation contributions.

Hi Ken,

I've passed this on to Meg Heffron.

Best,
James

How well do the big super funds communicate with their members who are not proficient in English such as immigrants have worked in menial jobs and merely understand that this money is for them. The bigsuper fund their employer placed in has made no effort to communicate with them personally other than the annual statement.

A commparison of industry based super and for profit super funds, comparison of fees, performance and functionality. This could be tied to advice(managed funds) vs etf investments.
SMSF vs managed super seems previously well covered.

Hi Kurt,

Yes, we'll do something on this topic.

James

Possible Topics for investigation:

1. Transparency and governance for Industry Super Funds and their relationships with the Labor Party and Trade Unions (if any ?)
2. Whether their performance justify the fees they change their members particularly with regards to high growth investments.

And add in why are fees based on a percentage of balance rather than a flat fee.

I agree with this topic.

Dom,

Good topics, thanks.

LICs and why investors have fallen out of love with them. Is there really any value to buying them below NTA? Will they ever return to fair value? Should they be keeping so much in reserve rather than increasing yield? Will tax liabilities of the oldest of them preclude any change to a listed trust structure to return to fair value for shareholders?

Hi Dave,

We covered some of this last year:

https://www.firstlinks.com.au/the-catalyst-for-lics-rebound
https://www.firstlinks.com.au/lics-may-close-bottoming

Some good points for a follow up article.

James

Taxation , and possible effect of future govt action with particular relevance to SMSF, and retired investors.

David,

Hard to predict tax, but we'll certainly cover any developments that happen in this space.

James