August 2014

What we learned this week 15 Aug 14

14 August 2014 |

learnActive fund managers underperform, Commonwealth Bank's profit, inflation and growth in the US and Australia's lost decade.

What we learned this week 8 Aug 14

07 August 2014 |

learnAre we about to get a second Great Recession? Trend investing, office property demand strong in Sydney and Melbourne, residential property, nominating a beneficiary for your pension, Rio's result.


What we learned this week 29 Aug 14

28 August 2014 |

learnSuccessful investing is about making fewer mistakes, ageing's effect on  investment, tax on account based pensions, criticisms of FOFA, the Great Recession worse than the Great Depression and what low interest rates mean.

How to embrace, not avoid, risk

27 August 2014 |

riskOne of the desires of investors is to eliminate risk. But risk avoidance can often lead to very poor returns. Better to embrace risk by realising that about a quarter of the time returns will probably disappoint.

What we learned this week 22 Aug 14

21 August 2014 |

learnDavid Murray predicts big fall in property and share prices, QE pull back will create problems, fund managers revert to cash, warnings about a housing bubble, miners turn to Africa and China still trying to balance its economy.

A dozen lessons about investing

20 August 2014 |

ideas12 touchstones for investing. It is important to know, because most Australian financial advisers are really sales people for the big banks and insurance companies. There is a structural, rather than individual, conflict. It is not likely to be addressed effectively, despite the increasing controversy. There is simply too much money involved.

The level that nobody understands

20 August 2014 |

complexOn top of the conventional financial markets there is over $700 trillion of high tech financial instruments that no-one understands, rather like being held hostage by a casino. It is distorting investment markets and creating great dangers.

The (desperate) pursuit of better returns

18 August 2014 |

desperateWith interest rates falling so low, investors are anxiously looking around for better options. Trouble is, everyone is doing the same thing.

Investing in commodities for diversification

12 August 2014 |

diversifyCommodities are a type of asset class, but the long term picture is not encouraging.

What are the options beyond cash?

10 August 2014 |

Inflation Interest rates have fallen below inflation, meaning cash investments are giving negative real returns. What should be done?

The SMSF advocate

05 August 2014 |

Andrea SlatteryAndrea Slattery heads up the SMSF Professionals Association of Australia (SPAA). She has a deep knowledge of the sector.

High debt likely to mean lower interest rates

04 August 2014 |

DebitA broker argues that the Australia's $1.4 trillion of mortgage debt, which is close to the value of the share market, puts pressure on the RBA to keep interest rates low.

What we learned this week 1 Aug 14

31 July 2014 |

learnDebates about regulation in SMSFs and property, avoid fast money schemes, Australian and American share markets and interest rates.

What the brokers are saying

26 August 2014 |

BrokersInvesting in the US, Caltex, Beach Energy, Bluescope, UGL, NIB, Spark Infrastructure.

Finding value in the market

25 August 2014 |

SeekA look at some stocks, including miners, Resmed, on-line advertisers, Wesfarmers and airlines. The picture is mixed.

SMSF Investment decisions: Shares vs Property

24 August 2014 |

choiceAustralia's stock market has many strong dividend paying companies. But capital gains have been weak. It is a hybrid: somewhere between a share market and an income paying security market. It favours DIY super investors.

What the brokers say

19 August 2014 |

BrokersNAB, energy stocks, Fortescue Metals, Stockland, OZ Minerals.

The four phases of stock markets

17 August 2014 |

businessA broker's analysis of where the markets are in the cycle.

What the brokers say

13 August 2014 |

BrokersMarket fully priced, BHP and RIO, AREITs, Woolworths sell, JB Hi Fi, Telstra.

US buybacks heaps, Australian buybacks 0

05 August 2014 |

USAIn America share buybacks are one reason the market has grown so strongly. In Australia, it is the opposite. But both markets may be about to change.

What stock brokers are saying

05 August 2014 |

BrokersThe brokers' take on Aristiocrat Leisure, Navitas, CSL, Woolworths, NAB, Amcor and others.

China's heavy investment into the Australian property market

03 August 2014 |

ChinaThe Chinese are investing billions into Australia's residential and commercial property markets. An analyst explains why.


Why economists can tell us almost nothing

24 August 2014 |

blahblahWe see economists pontificating about the future of markets every night on television and every day in national newspapers. Why? There is overwhelming evidence that they know nothing. There is a lesson there for SMSF investors.

Do the smartest guys in the room win?

17 August 2014 |

ideaBeing more intelligent is supposed to be a key to superior investment performance. But is this really true or are markets more complex than anyone can imagine?

Microcaps offer an alternative route

08 August 2014 | Reynard

MicroThe very small end of the stock market has many risks, but in theory the rewards can also be much greater. Many SMSF investors are giving it a close look.

Greying and investing

07 August 2014 | Reynard

OldThe dire forecasts about declining economic growth and ageing miss the fact that financial activity is artificial, and becoming more so. It is not just a reflection of natural trends, like population growth. Still, investing in areas that will benefit from ageing does seem to have attractions.

Mysterious moos

28 August 2014 | David James

It's raining bats and dogs in Canberra.

I'll have my stake medium rare, thank you

21 August 2014 |

meatWho are these stakeholders and why are they holding stakes? Very strange behaviour.

Budging on the budget

04 August 2014 |

BudgetWith the Federal Budget in more trouble than Tony Abbott's budgie smugglers, it is time to think creatively.


Capital expenditure trends positive

06 August 2014 |

TrendsThe indicators for capital expenditure suggest that the economy may become more balanced as the mining boom eases.


Small super tax is big politics

26 August 2014 |

taxThe tax breaks on super are becoming a major political issue. But the real winners are those in the financial services industry.

Paying Benefits from a SMSF

13 August 2014 | ATO Information guide

ATO Paying Benefits

The Australian Tax Office produces a number of publications designed to help tax payers understand their rights and obligations when it comes to Self Managed Super Funds. Personal Super Investor has reproduced some of these guides to help people better understand the issues relating to SMSF and to give them a better appreciation of some of the responsibilites they will be taking on. These guides often change so always check the ATO website for the latest updates. This particular guide looks at the rules and regulations relating to paying retirement benefits to members.

Super funds flying

12 August 2014 |

winningIt has been a good year for super funds, mainly because of investment in shares. It suggests that low interest rates create a bias towards equities.

Running a SMSF

31 July 2014 | ATO information guide

Running a SMSF ATO Guide

The Australian Tax Office produces a number of booklets to help people understand the Taxation issues of running a Self Managed Super Fund. This booklet looks at the legal issues relating to running a fund, contributions and rollovers, tax on contributions, managing investments, accessing benefits, reporting, administration policies, compliance and penalties.





The in-house assets trap

27 August 2014 |

jailTrustees of SMSFs need to be careful of the in house assets rules. Contraventions of these rules account for more than a quarter of all breaches.

ATO reviews SMSF Tax concessions data

25 August 2014 |

cheatMore than half of self managed super funds pay no tax, according to ATO data. In particular, dividend imputation gives them a tax holiday. The average fund now has $920K.

Minimum drawdown may be reduced

11 August 2014 |

ReducedThe minimum percentage that people pay themselves in the decumulation phase may be reduceded if the Federal government has its way.



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