Investing 101

Self-funded retirees understand the capital risk in holding the ‘big four’. It’s one they’re prepared to take knowing their effective grossed-up yields are much higher than the nominal figure.

With many economists expecting the Reserve Bank to start cutting interest rates in early 2025, returns on term deposits could feel the pinch. Private credit is an alternative, but those pursuing this investment option will need to do their homework – thoroughly.

Gold stocks have long appealed to market aficionados, and there’s no shortage of choice with 185 miners publicly listed. To assess what’s value, and what’s not, there are some key metrics to help sort the wheat from the chaff.

Fixed interest investment by the SMSF sector has been akin to oil and water, comprising a miniscule one per cent of the sector’s net assets. But a growing cohort of these investors are slowly finding the fees, flexibility and returns can make debt a compelling investment story.

APRA is looking at the big picture – the stability of the banking system. So, while its proposal to phase out hybrids might make sense from that perspective, it’s going to deprive many of an investment option that has delivered healthy income streams.

In the past few months, shareholders have been receiving more attention from fraudsters who have been impersonating individuals via identity theft to steal their shares. Tragically, self-funded retirees are often vulnerable with many still reliant on snail mail.

One of the most bitterly divisive US presidential elections in history has investors on edge. While it will ensure market volatility, long term it’s the economy that will dictate how markets perform.

For the past year, the banks have delivered to shareholders with income and capital gain. In the run-up to their next results, it might be time to consider taking some scrip off the table and pocketing a tidy profit.

If it becomes law, the Scam Code Act will require social media companies, mobile networks and banks to be far more vigilant in preventing fraudulent behaviour. Failure to do could see them liable for fines of up to $50 million.

A landmark report by the Australian Human Rights Commission has uncovered a frightening lack of understanding about a financial enduring power of attorney. Now it wants federal, state and territory governments to usher in complementary legislation – urgently.

With EY predicting a pick-up in the private credit market, the need to understand the risks inherent in this investment strategy that’s nearing $200 billion in assets under management has never been more important.

The Law Society of NSW breaks new ground by recognising that an ageing population has distinct legal issues that require solicitors to have a different skill set.