In our Federal Budget 2019/20 coverage, we present summaries and analyses of the Budget from Cuffelinks’ sponsors, including newsletters and videos, plus a summary of Labor’s overall strategy.
Tag Archives | Perpetual
Low interest rates have created problems for retirees, leading to the threat of a reduced lifestyle quality, running out of cash or accepting the age pension. Taking high risks at this point may make things worse.
Exogenous factors like macro changes and weather can affect a company’s short-term profits. Management often blames uncontrollable factors for earnings downgrades but rarely owns up to a fortuitous tailwind.
As pensioners and advisers adapt to the asset test changes, they should not place a different value on a dollar of income and a dollar of accumulated capital to support a retiree’s lifestyle.
There is much disagreement over the ‘safe’ withdrawal rate in retirement to ensure savings do not run out. Unfortunately, drawing only 2.5% from a nestegg will leave many retirees living a life on unnecessary austerity.
The method chosen to determine the amount of pension payments from superannuation should influence the allocation towards the volatility of growth or income-based assets.