Investing 101

A fight over renowned painter Mimi Milka Berger’s $24 million estate highlights the importance of having an estate plan that accurately reflects the deceased’s final wishes.

Dispute over ownership of shares worth more than $500,000 that entitle use of water from the Murray River reinforces why testators need to make their final wishes crystal clear.

The failure to document how an estate should be legally divided up almost inevitably leads to costly legal battles where lawyers are the only sure winners. Yet about 60 per cent of eligible Australians don’t have a will.

This ruling, when coupled with the growing incidence of blended families, COVID-19 promises and the Baby Boomer wealth transfer, will accelerate the growth of legal challenges over inheritances.

Many fund members who breach the super laws just want to sweep it under the carpet. It’s a poor option, with the taxman typically being far more lenient with those who voluntarily disclose any breaches of the SIS legislation.

There’s no shortage of factors to have investors on edge, whether it be Trump’s musings, overpriced equities or DeepSeek. Yet there are still opportunities in the markets, especially for active investors.

The pace of change may be glacial, but more women are investing now and research confirms this benefits individuals and society more broadly. They’re also better at it than men and rapidly becoming a specific target market for investment product providers.

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.