Editor’s letter
How has 2017 worked out for you? Maybe you paid off some debt, started investing in an ETF, bought your first home or boosted your super? Hopefully you did kick a few financial goals and you’re feeling confident.
The reality, though, is that a combination of high household debt, low wages growth, low yields and a jump in energy and gas prices have all weighed heavily on our wallets. Greg Hoffman (page 40) says there is plenty to worry about in a country that hasn’t experienced a recession in 27 years – “one in which many households have borrowed to the hilt to get into expensive housing markets in several cities”.
On the other hand, Shane Oliver (page 44) is a little more optimistic about the opportunities. As he says, “non-US sharemarkets and econo- mies are less advanced in their cycles and provide more opportunities for investors. Similarly, unlisted non-residential property and infrastructure are likely to see more upside.” Paul Clitheroe (page 14) believes the “omens are good for investors over the coming decades”. Ross Greenwood (page 38) says investors who dig deep can still reap some great rewards.
That’s what I like about this issue. Reflection and forecasts from some of Australia’s best experts make for a great read. Throw in the Best of the Best awards and you can see why this issue continues to be in demand and a personal favourite of mine.
Now running for 17 years, Best of the Best is all about helping you make the right financial decisions. A big thank you to our partners
Canstar, Morningstar, Lonsec, Zenith, SQM Research, SuperRatings and WhistleOut.
One thing you can be certain about is that next year will bring challenges and fortunes. And while we are always told never to make an investment decision on tax efficiency alone, I'm sure plenty of investors are treading with caution at the possibility of a change of government at the next federal election. Labor's proposed changes could limit negative gearing to new properties only, halve the capital gains tax discount for assets held for more than 12 months to 25%, peg the top tax rate at 49.5% and introduce a 30% minimum tax rate on distributions to adult benefits of discretionary trusts. No doubt there will be plenty of debate around these proposed changes.
Of course, the worst thing you could do is nothing. While FOMO (fear of missing out) can work against so you so can FODS (fear of doing something). As Benjamin Graham, the father of value, says: “The best way to measure your investing success is not by whether you're beating the market but by whether you've put in place a financial plan and a behavioural discipline that are likely to get you where you want to go.”
Here's to a safe summer. The team at
Money thanks you for your support and wishes you and your family a wealthy, happy and healthy new year.
We'll be back in February with our top 50 share buys and property hotspots edition. Over summer you can keep up to date with all things Money by signing up to our free weekly newsletter at moneymag.com.au.