Innholdsfortegnelse for October 2015 i Money Magazine

“Do you know a good financial planner?” It’s a question I’m often asked. My answer is usually to read the magazine, as we do use quite a few planners in our stories each month. If you like what they say, give them a call. This month I’m really excited to offer one reader the chance to get their own financial makeover. With the Financial Planning Association, Money is launching a “make me over” competition. A personal financial planner, given the tick by both Money and the FPA, could be the very thing you need to start building wealth. Details of the package (valued at $5500) can be found on page 25. On the subject of building wealth, it will certainly pay to save a little outside super. Yes, super is…

Ballooning old-age costs are under the microscope. The cost of the age pension exceeds $41 billion a year and is expected to grow to $50 billion within four years. As the population ages and lives longer in retirement, the cost will keep growing. The age pension makes up 10% of all government expenditure, according to Rice Warner’s findings in the Institute of Actuaries’ report For Richer, For Poorer. One of the risks for retirees and pre-retirees is reliance on the age pension. Already more than 326,000 retirees have had their pension reduced or eliminated in this year’s budget. The report finds half of the population has a strong dependence on the age pension. In putting a value on it for people retiring today at 65, it says that to purchase…

Here are two new exchange traded funds (ETFs) that invest in the US sharemarket but with a twist. The BetaShares Geared US Equity Fund – currency hedged (hedge fund) (ASX: GGUS) allows you to gear into the US market while the BetaShares US Equities Strong Bear Hedge Fund – currency hedged (BBUS) is designed to allow investors to profit from the market’s falls. The geared fund invests in the 500 largest securities listed in the US, weighted by market capitalisation. Its gearing ratio will generally vary between 50% and 65% and the fund takes care of the borrowing. Investors are not exposed to the risk of margin calls. If there is a 1% fall in the US sharemarket in a day, the ETF will deliver a 2% to 2.75% increase…

Frequent flying may not be as glamorous as you think. If travelling is part of your job, you’ll know the importance of resisting the lure of the world’s most exclusive airports – some with their pools and spas, others with their golf courses and casinos. And buying airport food and goods can cause major stress on the credit card. But now, with the new Flio app you can shop around without feeling too guilty. Flio is effectively a database on international airports: it has all the information you need to help you travel safely and productively, including exclusive digital discount coupons for selected stores and restaurants. Saving a few dollars at Starbucks every week can make a big difference to your budget, so if you are a bit of an…

FACT FILE Luke Jecks, 43, founder of Naked Wines Australia and CEO of Naked Wines International. Lives Newport on Sydney’s northern beaches. Former director of sales and marketing, Cellarmasters. Named among top 50 online retail executives by Inside Retail and among the top 50 wine stars by Australian Wine Business Magazine, both in 2014. First job, letterboxing real estate pamphlets, age 13. LUKE JECKS LOOKS an unlikely international CEO. Relaxed and genial, he’s kitted out in jeans and runners and wears a fashionable fuzz. Then there’s his global HQ – a desk among his 35 staff in a crowded space above a modest marina on Sydney’s northern beaches. Most are there to take calls from members. They call themselves the customer happiness team and they call their members angels. Jecks…

I am not a fan of purchasing an investment property off the plan – and it is the actual rental return that normally catches out investors. If the majority of other buyers in a property development are also investors, the promised rental yield does not become reality; the supply is much greater than demand and rents fall until all the vacant units are filled. My bigger concern is borrowing or gearing to purchase a property when job security is a little unknown – it is a high-risk strategy. You have done all the hard work of reducing your mortgage and I expect you would fully extinguish this in the next few years – that is a terrific milestone. The next step is to build your investment wealth and it does…

How should I prepare for retirement? I am 49, earning $120,000; my wife is 55 and works part time, earning about $30,000, 50% of which is salary sacrificed. Our $600,000 property is fully owned. However, we have just redrawn $32,000 for a new car. This loan is fully offset and serviced from my wife’s salary sacrifice. We have combined super of $596,000 via three policies. We each contribute a voluntary 10%. In managed funds, listed investment companies and shares we have $282,000. I have a margin loan of $250,000 drawn to $43,000 (not making any repayments). Including the offset account we have $102,000 in savings My focus has always been super for our retirement but I am wondering whether I should be considering purchasing an investment property, which we could…

Liz Russell Etax.com.au Thanks to platforms such as Uber, Airbnb, Etsy and eBay, it’s now easy to start earning a second income without committing much money or time upfront. Boosting your income with a side gig has tax implications that could see you pay thousands of dollars in tax and leave you out of pocket. The trouble is, as you earn more money in total, the tax office taxes you at a higher rate and you can end up deep in the red at tax time. To prevent a nasty year-end tax shortfall, put aside money each month so you’ll be ready to cover your tax owing. First, estimate how much you’ll earn for the year from both jobs. From this you can calculate your tax payable, subtract the tax…

AFTER FAIRLY COMPREHENSIVE planning you’ve decided to sack your boss and plunge into small business. This significant decision was made by 20,500 entrepreneurs between June 2013 and June 2014, reports the Australian Bureau of Statistics. Starting a business should never be undertaken lightly and it’s essential to understand the time-worn advice that “turnover is vanity, profit is sanity, cash is reality”. But what does this mean? “It means that for new small business owners, cash flow management is your new best friend,” says Jonathan Perry, manager of marketing and business development at Canon Finance Australia. “Many profitable and seemingly successful businesses have failed because cash flow has faltered.” Good cash flow management, in simple terms, means understanding every inflow and outflow, says Perry, and it starts with the office and…

If you switch lenders, you will need to go through the whole application process again, so it pays to be prepared to increase the chances that your application will be approved. Ways to help your case include: • Impress the lender by having a statement of position prepared – a detailed list of all your assets and liabilities as well as a written budget so that they can see your incomings and outgoings. • Make yourself familiar with your repayment history on your existing loan. Newcastle Permanent’s Terry Millett says: “Have you got a strong case for a cheaper rate and would you make an attractive customer for a rival?” The amount of equity you have in your home is also relevant. Customers with an 80% loan-to-value ratio (20% equity…

MY MOTHER ROSEMARY stubbornly refused help as she grew frail in her own home. But it reached the point where she wasn’t eating properly or taking her medication. Housework and shopping were almost beyond her. Some help would keep her safe in her own home for longer, I told her, but she was very independent and had a million reasons why she didn’t want help: she could do everything herself, it would cost money and she didn’t want strangers in her home. She never wanted to be a bother to anyone, so it was an all-consuming effort to get her to accept help. The first step in getting aged care help is to book an assessment with an aged care assessment team (ACAT, or ACAS in Victoria). It can be…

FOR MANY PROPERTY INVESTORS, a rental guarantee, offered by a developer or marketer for a certain period, can sound very attractive. Especially for those buying into an oversupplied market, like inner-city Melbourne apartments, where finding tenants is getting tougher and rentals are on the way down. CoreLogic RP Data reports Melbourne apartment rents fell 1.8% in the year to July 2015 and the gross yield is 4.2%. But rental guarantees usually have strings attached. The cost of the guarantee, and often more, is usually factored into the purchase price. So in effect you are paying the developer upfront for the rent he will repay you over the next few years – that is if he is still around to honour his guarantee. “Rental guarantees allow the developer to hoodwink investors,”…

SKAFFOLD PICKS JB Hi-Fi (JBH); value $30 Australia’s largest home entertainment retailer, which has recently moved into whitegoods and appliances, ended the 2015 financial year in a strong cash flow position, and its Skaffold Score rises from an A2 to A1. Even though flat growth is forecast, the company is trading, at $18-$19, around 37% less than its value. Nick Scali (NCK); less than $3.70 is a bargain Founded more than 50 years ago, it imports 4000-plus containers of household furniture a year and last financial year it opened seven new stores. The solid performer has returned 165%, including dividends, over the past 10 years. It is highly profitable, generating a return on equity of more than 35% and Skaffold forecasts growth of around 10.5%pa. In mid-September, it was trading…

Contact us To send a letter to the editor, write to Money, GPO Box 4088, Sydney NSW 2001 or email money@bauer-media.com.au For all inquiries and letters, please include name, address and phone details. Letters may be edited for clarity or space. Because of the high number of letters received, no personal replies are possible. How to get Money 1 Subscribe to Money: Phone: 136 116 Online: magshop.com.au 2 Subscribe to the Money digital edition for your iPad at magshop.com.au/digital/subscribe/moneydigital 3 Visit our website moneymag.com.au and sign up for our free weekly newsletter. You’ll get our top money stories plus exclusive finance tips. www.twitter.com/moneymagAUS…

A listed investment company (LIC) is an ideal way for investors of all sizes to gain exposure to the sharemarket through a single investment. QVE Equities is an LIC that focuses exclusively on stocks outside the top 20 stocks on the ASX. Investors are generally aware of larger ASX companies, and tend to invest directly in these. However there are many good-quality companies outside the top 20 that can provide investors with diversification and the opportunity to generate capital appreciation over time, whilst also generating a sustainable and growing dividend stream. FACT FILE: QVE Equities ASX code: QVE Start date: 22 Aug 2014 Net assets: Estimated fee: Annual dividend yield: Average ASX dividend yield: Source: Morningstar as at 31-Aug-15; Dividend yields, ASX, 11-Sep-15…

AROUND 80% OF RETIREES WILL qualify for at least a part age pension. You’ve worked hard, paid your taxes and now you want a bit back from the government. Well, it’s only fair! Let’s have a look at some ways to maximise your pension. The government pays about 10% of all of its $450 billion or so of tax revenue on pensions, so look out for future changes if we keep running a massive budget deficit, currently about $50 billion and likely to blow out as our population ages. Being a self-funded or partially self-funded retiree will protect your standard of living. Income and assets tests The full age pension for a single is $22,365 a year and for a couple $33,716pa. The upper limit for the assets test is…

Australian bank shares have been solid performers in recent decades. They’ve delivered an impressive income stream and shrugged off the challenges of the GFC with an ease that was the envy of much of the world. However, between March 2015 and September 2015 they lost 25% of their value and investors may well ask – is the miracle over? The good news is that, following the falls of the past six months, bank dividend yields are looking more attractive. At a rate currently more than 6% – even before considering the value of the franking credits – yields are now well ahead of the rapidly dwindling returns on, for example, term deposits. However, a major main caution to bear in mind is that banks are highly leveraged investments, with gearing…

WHAT’S THIS TALK ABOUT DIVIDEND SUSTAINABILITY? I’VE BEEN INVESTING IN STOCKS WITH A GOOD YIELD FOR THEIR INCOME While the latest reporting season largely avoided nasty surprises, some investors have been questioning dividend payouts in the light of economic uncertainty. THE PAYOUT PUZZLE Part of the concern is that while companies have increased earnings in recent years, they have also been “funding” dividends by increasing dividend payout ratios. This is the proportion of their earnings that they pay out to shareholders in dividends. Australia, largely thanks to dividend imputation, has long had a higher dividend payout ratio than many overseas countries. But the overall ratio for the local market has risen substantially in recent years – from about 55% four years ago to around 73% today. Shareholders like yield and,…

THE REPORTING SEASON FOR THE 2015 financial year is now behind us and some of Montgomery Investment Management’s attention – as at many leading brokers – has returned to the pipeline of initial public offerings (IPOs) slated for marketing over the coming months. While MIM has participated in a number of IPO gems, this reporting period was marked by disappointing results from companies that have recently become public entities and it serves as a warning for greater caution when assessing investments for your portfolio. Dick Smith (ASX: DSH) is one such company that underwhelmed this reporting season after floating in December 2013. Although it listed for $2.20 a share and provided an attractive return for its vendors, its new shareholders are deeply in the red with the share price at…

LETTER OF THE MONTH Hard work takes its toll How very true that “The goal posts keep moving” (September, The Buzz). I have always enjoyed sport, hiking and physical work for many years on a large farm, with the thought that my retirement age would be 60. Now the goal post has moved to 65.5. I am well past 60 but not yet retirement age. I am in good health but this year I am feeling very tired and have just had enough. My course of action will be to quit work at the end of this year and live on my super until I am 65.5. One policy does not fit all but how a sedentary politician might empathise with an ageing concreter, builder or farm worker, I don’t…

Investment property owners are likely to receive a shock as significantly higher land tax assessments are expected this year and beyond, as a result of soaring land values in NSW and Victoria. Other states do not seem to have had the same increases. Unimproved values on which land tax is assessed increased by more than 11% in 2014, reports the NSW Valuer General, and this will form part of the next tax assessment based on the average of the land value for the current tax year and the previous two years. The most important factor the VG considers in determining land values is sales of similar properties in a particular locality. Investment property owners should pay close attention to the land value stated on the assessment notice and monitor sales…

The age pension is usually the most appropriate payment for people 65 years or older but any superannuation you have may affect your eligibility or the amount you receive. The new transfer process is quicker and easier than completing the full age pension claim form and, better still, can be done online. Preparing for retirement is a busy time for most, so we’re taking steps to simplify the process. We now send you an invitation if you are receiving an eligible income support payment from us to transfer to the age pension once you are within nine weeks of reaching eligibility. For more information about what payments are eligible for this streamlined transfer, visit humanservices.gov.au and use the search function for “transfer to age pension”. Another resource is our free…

Just as its popularity had increased in Europe, boosted by Greece’s economic travails, bitcoin’s future looks unstable. The original bitcoin code was “forked” by software engineers in late August to create bitcoin XT – a copy of the original with better processing capabilities. The development has split the bitcoin community, with no consensus as to whether the two currencies will merge or exist separately. Bitcoin XT aims to be able to process more transactions per second than the original currency, which critics say will reach its physical limits by early 2017. The new features are projected to be in place by January next year but only if 75% of bitcoin “miners” switch to the new currency. A trust in vehicles Charter Hall’s newly launched Direct Automotive Trust is an investment…

NAME: Young-Sun Hwang. STATUS: Home owner who wants to buy an investment property. QUESTION: Is it a good time to buy an off-the-plan investment property in the Brisbane suburb of Cannon Hill? Are interest rates going up in the near to medium future? What would happen to my 10% deposit if my circumstances change? The developer projects rental of $440 to $480 a week – is this realistic? Should I boost my super instead of buying an investment property? Do I need income protection insurance? SOLUTION: Don’t buy off the plan as there are plenty of things that can go wrong. Consider boosting your wealth either through your super fund or outside through a regular investment in managed funds. Or buy an established property that can be immediately tenanted. Buying…

Tom has already learnt the … Secret of saving Q G’dayPaul.Iread Money every month and would love some advice to set me up for the future. I’m 17 and in my first year of a carpentry apprenticeship earning $21,200. Once I complete my apprenticeship I wish to be self-employed. I have $9000 in an online savings account, $15,000 in a term deposit and shares worth a little over $4000. I’m wondering how I can approach the next few years. A Straight off the bat, it looks as though you’ve done a great job saving over the past couple of years to accumulate $28,000 in cash and shares. Getting into the right finance habits early in life sets you up to continue making good decisions as your salary and expenditure grow…

Tapping into home equity and bumping up the preservation age are two of the latest recommendations for overhauling the super system. For Richer, For Poorer, by the Actuaries Institute, investigates the effectiveness of the super system. It says while super is doing its job at present, big changes need to be made to accommodate the realities of our ageing population. The report notes Australians have a heavy dependence on the age pension, costing $41 billion a year. As retirees are living longer, the cost is set to increase to $50 billion in the next four years. To take pressure off age pension funding, it recommends taking into account the value of the family home in assessing age pension eligibility. That could encourage middle-income earners to downsize or even take out…

A LOAN APPLICATION, BE IT SIMPLY for a new credit card or as important as a mortgage, will trigger a review of your credit file. It is then you may find you have at least one negative report on your credit file because the lender has concluded you are a bad risk and rejects your application. Your credit file may or may not be completely accurate. Apart from your ID details, a typical report contains information such as payment defaults over the past five years, missed or even late payments, disputes with creditors, judgements, overdue accounts, bankruptcies and a partner’s financial defaults on joint credit facilities. A bad report can also result from making multiple loan applications to different lenders – loan shopping – which can be interpreted as several…

Whether it's shares or property, timing an asset sale to achieve the best price possible is often a challenging assignment. Also real estate isn’t like the sharemarket, where it’s possible to sell a few stocks here and buy a few stocks there to take advantage of short-term price movements. Rather, the vast majority of people sell their homes because they have no choice. It may be that a new bub has triggered the need for a larger home, or the last of the tribe has moved out and the home owner is now lording over an empty nest that is simply too big to maintain. Alternatively, a property sale may be activated by a family break-up, a marriage or an interstate or overseas job transfer. Or it’s been prompted by…

The lengths by which banks will stem borrowing for investment properties have grown. First it was higher interest rates and lower loan-to-value ratios. And now banks are applying stress testing to monthly payments on investment loans. So when you apply, banks assume you’ll have to pay back the loan at a higher interest rate, which decreases the approved borrowing amount. Small margins on factors that affect your serviceability rating could reduce a loan by tens of thousands of dollars and determine whether you secure a property or not. If you want to add to your investment portfolio, ask your lender how it will treat your existing debt when it rates your serviceability. If stress testing applies, it may be time to take your business elsewhere.…

Syndicates that invest in retail property assets provide investors with a purer exposure to property than A-REITs. They also provide relative certainty, with regular income payments, which suit investors and DIY super funds looking for income. Unlisted property has a low correlation to other asset classes, including equities. Its inclusion in an overall portfolio will usually reduce an investor’s risk profile. Overall, syndicates are gaining popularity as the search for yield continues and those from reliable managers are usually snapped up. The APN Convenience Retail Fund, expected to open this month to investors with a minimum of $20,000, will focus on retail assets that provide products people have to have, such as groceries and petrol, rather than those they like to have, says Tim Slattery, APN executive director. The eight-year-term…

Investment bonds can quickly and effectively transfer wealth between generations, making them effective for estate planning. Investors can nominate beneficiaries within the account, including charities, to receive the proceeds tax free upon the investor’s death, irrespective of how long the investment has been in place. Investment bonds are generally considered to sit outside the deceased’s will, so they are not subject to the delays associated with probate, and are very difficult – if not impossible – to successfully challenge. The modern breed of investment bonds have an estate planning feature where the tax-free proceeds upon death can be utilised to create a deferred lump sum, an income stream, or a mix of both for any of the respective beneficiaries. Other bonds would automatically be redeemed when the investor dies, and…

LAST MONTH I DID AN UNUSUAL thing (for me). I bought some shares. I know that should be normal for someone who watches the sharemarket every day but I’ve discovered I do not have the time to be a constant trader. The years have taught me that – as when buying property – every day is not a good day to climb on board. And I know I have confessed this before, but I have also discovered that I am a better buyer of assets than a seller. It doesn’t matter if it’s houses, apartments, cars or shares, I am better at spotting value to buy rather than an opportunity for selling. Which, I understand, is a fault. I tend to hang on to assets too long and I don’t…

Within the ASX, we have focused on three investment themes: defensives, global leaders and yield with growth. Defensive stocks are more likely to outperform in a risk-off environment. Transurban (ASX: TCL) is one of our preferred stocks in the transport infrastructure space. It has a large suite of road assets in Australia, high free cash flow and an attractive growth profile to support growth in dividends. We rate Transurban “equal weight” with a price target of $10.21 (at the time of writing in early September it was around $9.75). Global leaders should benefit from stronger global growth and continued weakness in the Australian dollar. A stock within this theme is Corporate Travel (CTD), which provides travel management solutions to the corporate market in Australia, New Zealand, Asia, North America and…

IT’S TOUGH WRITING ABOUT THE stockmarket when it’s so volatile. It’s like joining a share-tipping competition in a tabloid newspaper. At some point you are bound to be made to look stupid if you allow yourself to be compared with a dartboard, a monkey, an astrologer or one of the oarsome foursome. But let’s give it a go. If you think about it, the stockmarket only ever crashes. I don’t remember that it ever went up 25% in a day. The reason, of course, is a possibly fabricated hypothesis that losses have three times the emotional impact of a gain. In other words, we fear a loss three times more than we want a gain. This would suggest that share prices fall three times faster than they rise. The 2007-08…

RECENTLY I WAS asked to attend the Senate economics committee hearing into credit cards by its chairman, Senator Sam Dastyari. I was pleased to be asked to present to the hearing, and it turned out to be a valuable day as I was one of three presenters for a session with my very old friends David Koch and Ross Greenwood. Ross, of course, is well known to Money magazine readers with his regular column and his role with Channel 9. David Koch is well known as the host of Sunrise. The three of us go back a long way. I have known Kochie since 1979 and Ross since the mid-1980s. For many years we each had a money-type TV show. Kochie was hosting Your Money and Your Life on Channel…

SOLD ABOVE MARKET Geoff Grist MAJOR STREET RRP $29.95 It’s stressful enough getting your home ready for sale let alone finding a real estate agent you’re happy with. According to author and entrepreneur Geoff Grist, 67% of sellers nominated choosing an agent as the most stressful step in the process. So how do you find the right person? Grist’s tips should help you make the decision. First he has some questions for you as the seller: What are your reasons for putting your home on the market? What are your goals? (These include your time frame and the price you have in mind.) Grist then takes a look at the real estate agent: the differences between agents and agencies; the qualities possessed by a good agent; the role the agent…

We all feel good about giving to charity but what makes it even better is that, in many cases, the tax office will allow you to claim a deduction for your donations. Basically, provided you’re giving to an organisation registered as a deductible gift recipient you should be able to claim a deduction. Most major charities are registered but if in doubt you can check at abn.business.gov.au. If you give cash, you can claim a deduction for gifts of $2-plus. For gifts of property, there are rules depending on the type of property and its value. You can claim the deduction in the tax return for the income year in which the gift is made. You’ll need a receipt to substantiate the deduction. If you used the internet or phone…

One of the interesting things I find about this question is that Young-Sun has asked many questions about the property itself and her broker has told her she can afford it, but no one seems to have asked some of the more important questions: Is Cannon Hill the right place to buy at this moment in time? Is there evidence of demand? What are the growth drivers? What is the supply like at present? Is this property at market value? Most investors become investors the wrong way – they see a property they like the look of and decide it’s time they invested! This sets them up for failure, as they do not consider their personal needs and financial circumstances and whether the area and its future growth potential are…

A thorough analysis of Lance and Judy’s goals and objectives was conducted. The pros and cons of overexposure to residential real estate were explained. Many clients like them are faced with the same dilemma, which arises from being asset rich and income poor. To complicate this, Lance has an emotional attachment to his home. He is passionate about gardening but Judy would prefer a low-maintenance townhouse and would rather be in a cafe than in the garden. They realise that now may be the time to downsize. With interest rates at their lowest level for many years and unemployment relatively low, the propensity of people in the market to buy and the ability of Lance and Judy to maximise their sale price could justify the decision to sell. As they…

30s Focus on the mortgage, 34 40s Invest in a diversified fund, 36 50s Use home equity to invest, 38 60s Maximise tax benefits, 39 STORY SUSAN HELY Along with paying off the family home, super has been a cornerstone of retirement planning. But governments keep changing the rules, so it's increasingly important to have an alternative nest egg. Money asked the experts for savings strategies for four age groups: the 30s, 40s, 50s and 60s. Australians have always worried about the government changing the rules for retirement savings but lately their anxiety has grown more intense. In fact, it is the No. 1 concern for retirees and pre-retirees, reports a survey of 1200 superannuants by State Street Global Advisors and Rice Warner. It found 63% of informed investors and…

IS IT POSSIBLE TO BUY A PROPERTY before you sell? Absolutely! I’ve done it – but not without a few butterflies. You’ve got to be confident that your property will sell and that it will sell in record time. If you can’t engineer a simultaneous contract settlement, then you need to be certain that your lender has a true bridging finance product and doesn’t just simply slap two mortgages together. If they do, it could cost you the approval. First things first. There’s no point buying before selling if you think you will have trouble offloading your home. Most experts measure the health of the market by auction clearance rates. But Angus Raine, executive chairman of Raine & Horne, says a truer indication is “days on market” – the time…

Sharp design, solid investment On hot days when deadlines approach, the Dyson AM06 table fan keeps your workspace at the optimum temperature. The powerful airflow of Dyson’s Air Multiplier technology creates a smooth jet of air to maintain the cool of the room – and your focus – without fussy blades. Energy efficient Your power bill won’t have to take the heat for all this cool. Clever engineering means Dyson Cool fans now use up to 40 per cent less energy. Works the room Whatever desk you have, there’s a Dyson model to complement it. The Dyson AM06 table fan comes in white/silver, black/ nickel or iron/blue. No blades, no worries With no fast-spinning blades and no awkward grilles to accumulate dust and grime, Dyson Cool fans are safe for…

A good-looking kitchen is a must-have for a high-returning property. A new kitchen typically adds 4%-6% to the value of a home, so if you’re thinking of renovating, this is the best place to start. The Housing Industry Association has nominated the top five kitchen design trends from the 2015 Melbourne Home Show: • Entertainment: With the rise of home cooking shows, kitchen design has changed to complement the resident master chef. A butler’s pantry provides a hidden place for food preparation and mess. Gadgetry is also a feature, allowing for device interconnectivity for chef, guest and home. • Industrial benchtops: The hybrid kitchen benchtop is resilient, sturdy and flexible, combining form with function. Engineered or natural stone is scratch-resistant and fingerprint-proof. Mobile islands are also becoming more popular, allowing…

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The gap between direct and indirect investing is becoming increasingly blurred, as research shows record growth in the use of separately managed accounts (SMAs). Investment strategy group JBWere recently launched a white paper on the evolution of SMAs, revealing that 20% of financial planners now use them as part of a client’s investment portfolio. SMAs, like managed funds, are controlled by a fund manager, which charges a management fee. But unlike managed funds, SMAs are not pooled investment vehicles – the investor directly owns the underlying securities in the model portfolio. Many financial planners believe the self-managed super fund (SMSF) sector – which currently holds just under a third, or about $193 billion, of its total assets in direct equities – would be better off investing in SMAs. JBWere says…

AUGUST’S SHAREMARKET ROUT will have left self-managed super fund investors feeling vindicated for stockpiling cash. SMSFs are often derided for being too defensive and holding too much of their savings in cash. Two surveys, conducted between November 2014 and April this year, showed SMSFs remained unconvinced and bearish in the face of a rising market, with one survey noting their “level of concern in relation to investments increased”. Graeme Colley, the director of technical and professional standards at the SMSF Professionals’ Association of Australia, says SMSF investors tend to be astute. “Trustees are very bearish at the moment. They tend to be 90 days ahead of the market compared to other investors. That not only comes out in our own research but also in research published by Investment Trends.” Vanguard’s…

BED, BATH & BEYOND (BBBY) RATED A2 BY SKAFFOLD • Best value top stock in the US. Currently trading at a 46% discount (value compared with share price) and a price-earnings (PE) ratio of 12. • The most profitable of the top stocks. While return on equity is forecast to be slightly lower this year, BBBY’s average ROE forecast for the next three years is 25%. • Cash flows have been higher than reported profits consistently. • BBBY’s products span linen and homewares, furniture, Christmas, baby and discount health and beauty. SKYWORKS SOLUTIONS (SWKS) RATED A1 BY SKAFFOLD • 12-month earnings growth of more than 100% is forecast. • Trading at a 21% discount and PE ratio of 17. • Manufacturer of high-performance analog semiconductors servicing any market you can…

EVERY SIX MONTHS, AUSTRALIA’S listed companies lift the lid on their financial accounts. Clearly this is an important time to see what shape companies are in and how they have performed in recent months. Some companies also provide useful commentary on the results and connect with media and analysts via phone, webcam or in person. The focus in the latest profit-reporting season was on those companies reporting their results for the year to June. The large majority of ASX 200 companies report for the year to June, around 12% have a December reporting year (report half-year results to June) and about 30 have a different reporting period. So how did companies perform? Well, usually earnings seasons tend to be characterised by a central theme, or themes but that wasn’t the…

Your guide to the super data Australians have two main investments – their home and their superannuation. Super may not be as riveting a topic but it’s just as important for your financial security. SuperRatings is a totally independent Australian superannuation research company. It is the leading source of superannuation information to the Australian media and is renowned for its timely commentary and opinions on the various superannuation funds available. Calculators, fund comparisons, fund ratings, news and expert opinion can be found at www.superratings.com.au. The data in these tables compares some of the most popular super funds. They are a mix of industry funds, master trusts and government funds. Industry funds are set up by employer associations and unions; many are offered publicly, some have restricted membership (NP). Master trusts…