History tells retirees to protect equities – 10 major market falls in 27 years

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No one can predict the stock market, but history shows risk can and does erode retiree capital. Be they called “corrections, downturns or crashes”, the impact on capital can be significant. Brisbane-based Pentalpha Investment Management Limited has studied the number and severity of drawdowns of the S&P/ASX 200 Accumulation Index over the last three decades. […]

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Annuity anxiety

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Outsourcing your retirement income needs to an annuity provider was supposed to reduce your anxiety levels. Recent developments at the likes of Challenger are causing annuity owners some disquiet. As yields have continued to decline in the fixed interest and property sectors, Challenger amongst others has raised a few eyebrows by moving up the risk […]

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Franking credit opportunity before 30 June for share fund investors

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The end of this Financial Year presents savvy Australian share fund investors with the opportunity to top up their franking credits pool and reduce their tax bill. Franking credits collected by many Australian share funds are frequently not recognised in the Fund’s unit price, in which case Credits are often only distributed at Financial Year […]

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The answer to building certainty is not more cash reserves

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Falling cash rates at historic lows means retirees face increased risk and an uncertain future, especially if they outlive their savings. Today’s RBA rate cut is a seminal moment for SMSF trustees as investors consider taking on more low yielding cash reserves. Walking a tightrope means balancing low yielding cash on one hand with risks […]

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Living longer is one good reason to protect capital for sustainable income

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There are over five million baby boomers (born 1946 to 1964). For most, a bright future awaits. After full-time work, it’s a stage of life which could span 25 years or more, so will the capital last? Longer, healthier lives against a backdrop of lower investment returns means Baby Boomers have two things to ponder: […]

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Industry struggling with seismic shift from wealth accumulation to wealth utilisation

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A seismic shift is occurring within Australia’s investment landscape and the investment management industry is struggling to cope. Over five million Australian baby boomers (born from 1946 to 1964), more than 1 in 5 Australians, are transitioning away from full-time employment. They are increasingly reliant on their accumulated wealth to fund part or all of […]

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Capital protected fund launches for retiree incomes

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Brisbane-based Pentalpha Investment Management released a new retail class of unit in its Income for Life Fund at the start of 2019. This follows the launch of the Foundation Class two years ago (now closed to new investors). The Fund conservatively targets 6% plus p.a., offering a much higher yielding alternative to cash, term deposits […]

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