Hot Issues
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SMSFs: Our 'hardest' jobs
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ASIC issues alert over big gaps in SMSF trustee knowledge
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Super savings gap for women stuck at 30%
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Statistics for all Australians
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Super set to play bigger retirement role
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Why SMSFs want estate-planning advice
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The power of financial role models
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Assess your retirement financial resources
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Cryptocurrency audits tipped to increase this EOFY
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Time to check your risk exposure?
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Some general interest stats on SMSFs
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Check trust deed to protect super in estate planning
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Australia by numbers – Update
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Federal Budget 2018 – Overview
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Your Budget
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4 components of our 2018 Federal Budget
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Tools to help you manage your financial position are available on our site.
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New rules capture SMSFs trading big with cryptocurrency
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Common EOFY slip-ups flagged for SMSFs
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Beware residency rules if moving overseas
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99 pct of SMSFs missing global opportunities
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How to plan for a better retirement
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Australia by numbers - Update
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Determine your retirement goals
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ATO issues update on cryptocurrency compliance traps
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Article archive
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Quarter 2 April - June 2018
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Quarter 1 January - March 2018
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Quarter 4 October - December 2017
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Quarter 3 July - September 2017
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Quarter 2 April - June 2017
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Quarter 1 January - March 2017
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Quarter 4 October - December 2016
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Quarter 3 July - September 2016
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Quarter 2 April - June 2016
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Quarter 1 January - March 2016
Quarter 4 of, 2016 archive
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Investor habits: The good, the bad and the ugly
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Keeping finances in the family
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The inter-generational financial squeeze
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Merry Christmas for 2016, a Happy New Year and a prosperous 2017.
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ATO set to clamp down on range of super issues
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SME retirement plans in jeopardy, research finds
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SMSFs show restraint in hot residential market
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Investment's building blocks - always worth reinforcing
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Warnings issued on traps with CGT transitional rules
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Meet SMSFs' early and late arrivals
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Beware, the ATO is on the hunt for lifestyle assets
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'Brexit means Brexit' means what?
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SMSFs tipped to be hardest hit by pension changes
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SMSF assets hit record, but funds still hoarding cash
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Markets caution advised as economic bubbles loom
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Stretching retirement income
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Some financial terms explained
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Market Update – September 2016
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Checking in on our 2016 economic outlook - and looking ahead
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Making a fairer and more sustainable Superannuation System
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Going undercover
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‘Winners and Losers’ from new super proposals
Keeping finances in the family

 

Would you be willing to help your adult children financially if they were experiencing financial difficulties? And would you be willing to help your elderly parents if they were in financial need?

       

 

As Smart Investing discussed over the past week, intergenerational financial issues are set to become increasingly common given the ageing of our population. (See The intergenerational financial squeeze, November 27.)

Of course, many instances of providing financial assistance between generations would involve providing a financial helping hand from time to time rather than aiding an elderly parent or adult child in actual financial difficulties.

The Australian Institute of Family Studies has just released a research paper, Attitudes towards intergenerational support, that gives an insight into how willing we might be to provide financial assistance to our adult offspring or our parents.

Its authors – the institute's assistant director for research Ruth West and senior research fellow with the institute Lixia Qu – refer to a range of research projects covering attitudes to intergenerational finances. And they conclude: "[The majority of] Australians believe that parents and their adult children have an obligation to support each other practically and financially."

West and Qu have analysed data from the comprehensive 2012 Australian Survey of Social Attitudes, conducted by the school of demography at ANU, to find that:

  • 59 per cent of adults agree that parents should provide financial support if they are in financial difficulties.
  • 64 per cent of adults agree that adult children should provide financial support to parents if they need it.
  • 63 per cent of adults agree that parents should allow their adult children to live with them if accommodation is needed.

As we have previously discussed, individuals who want to assist either their adult children and/or elderly parents face somewhat of a balancing act. It is critical not to overlook your own needs to save and invest for retirement.


Robin Bowerman
06 December 2016
www.vanguardinvestments.com.au