Blog

May 10, 2017

More withdrawals from ‘the bank of mum and dad’

Think about what has happened in the six months since Treasury secretary John Fraser spoke of his concerns for retirement savings of parents who help their children into housing by making withdrawals from “the bank of mum and dad”. House prices in Sydney and Melbourne have continued to accelerate and, anecdotally at least, so has parental financial assistance with their children’s first home. Fraser is worried that helping children into costly housing, as homebuyers or tenants, may inhibit their own abilities to save for retirement, including through their super. Parents can find themselves trying to cope with something of a […]
May 3, 2017

A vital SMSF question: A corporate trustee or individual trustees?

A self-managed super statistic that doesn’t seem to change much over the years is the strong preference of new Self Managed Super Funds for individual trustees rather than a corporate trustee. The latest-available tax office statistics on SMSF trustee arrangements show that 93 per cent of SMSFs established in 2015-16 had individual trustees – a percentage that has remained more or less static in recent years. Yet 77 per cent of all SMSFs in existence at June 2016 had individual trustees – again a percentage that has remained rather static. Looking at this from another way, a third of all […]
May 3, 2017

Avoid ‘piecemeal’ portfolio creation

How did you create your investment portfolio? Was it a carefully thought out, highly planned and disciplined process? Or was it a “piecemeal” approach? As analysts wrote in the paper, Vanguard’s framework for constructing globally diversified portfolios: “Without a plan, investors often build their portfolios from the bottom up, focussing on investments piecemeal rather than on how the portfolio as a whole is serving the objective.” Another way to characterise the piecemeal approach, the analysts add, is fund-collecting. “These investors evaluate a particular fund [or an individual asset] and, if it seems attractive, they buy it – often without thinking […]