Opinion

APRA-regulated funds, especially profit-for-member funds, have had a good innings during the accumulation phase. It’s proving a different story in the decumulation phase with a growing number of members demanding a far more nuanced service.

Increasing e-commerce penetration, population growth and rising construction costs will ensure supply for this commercial real estate sector remains tight.

While a surging gold price is on hold as the world adjusts to a Trump presidency, all the factors that saw its price rise more than 50 per during his first term in office – trade disputes, fiscal deficits and geopolitical tensions – are almost certainly guaranteed the second time around.

History suggests that economics, not politics, has the biggest influence on markets. But that thesis could be tested when the 78-year-old Republican returns to the White House with a suite of proposals that will have implications for geopolitics, globalisation and financial markets.

A Trump victory on Tuesday is likely to rattle currency markets expecting trade wars and fiscal stimulus to be major policy consequences. Investors will need to be alert to their currency exposure, as well as appreciating it could provide opportunities to acquire Australian equities with US exposure.

It was Crosby Stills Nash and Young who wrote that immortal 1970 tune, Teach Your Children. That’s exactly what Selfwealth’s Craig Keary is advocating to ensure the estimated $3.5 trillion wealth transfer to future generations over the next 25 years is not squandered.

No different to the bond market, commercial property prices rise as interest rates fall. With growing expectations that the Reserve Bank will cut rates, self-funded retirees need to consider now whether they want a slice of this asset class.

Institutional investors get it. So do some financial advisers. But for most SMSFs, sovereign and corporate debt is the forgotten asset class – despite the defensive benefits it can deliver.

Debt in retirement is often a poisoned chalice. So, a solution that allows people to tap into their home equity by selling a share of its future sale proceeds without incurring debt can be a viable option.

It was a mixed bag for self-funded retirees this reporting season. The big banks continued to deliver those precious franked dividends, Charter Hall gave the office sector a much-needed fillip, while Dexus reminded everyone just how much financial pain some property groups are still experiencing.

Despite new supply coming on to the market, economic tailwinds should continue to underpin this buoyant commercial property sector’s growth for the next decade.

Sharp market downturns can play havoc with those in retirement who must draw down on their savings and have less capacity and time to wait for their investment portfolios to recover.