Ursula Boorman


May 3, 2017

A vital SMSF question: A corporate trustee or individual trustees?

A self-managed super statistic that doesn’t seem to change much over the years is the strong preference of new Self Managed Super Funds for individual trustees rather than a corporate trustee. The latest-available tax office statistics on SMSF trustee arrangements show that 93 per cent of SMSFs established in 2015-16 had individual trustees – a percentage that has remained more or less static in recent years. Yet 77 per cent of all SMSFs in existence at June 2016 had individual trustees – again a percentage that has remained rather static. Looking at this from another way, a third of all […]
April 26, 2017

Practical ways to control portfolio drift

Sticking to a disciplined strategy of regularly rebalancing a portfolio back to its target asset allocation can often seem counter-intuitive. This includes in the prevailing low-interest investment environment with expectations for lower returns over the medium-to-long term for broadly-diversified portfolios. In short, portfolio rebalancing can be an emotional decision for investors, requiring the selling of currently outperforming assets to buy currently underperforming assets. The basic reasoning behind periodically rebalancing is to recapture a portfolio’s intended risk-and-return characteristics. We have recently discussed how a broadly-diversified portfolio’s asset allocation is the primary driver of its return variability over time and how a portfolio […]
April 19, 2017

Life’s financial turning points: good and not-so-good

The marriage and divorce statistics for 2015 sadly suggest that 43 per cent of Australian marriages may end in divorce. Significantly, this number-crunching does not include separations of de facto couples. Unfortunately, the breakdown of a relationship is a reality for many couples and it is a reality with typically damaging financial and emotional consequences. We face a series of widely-shared financial turning points during our lives. Yet how we handle them obviously differs widely. ASIC’s personal finance website MoneySmart has long published a comprehensive feature, Life’s events – last updated this month – with tips about how to deal […]