$900 000 windfall - enough to retire now?

If a fully franked annual dividend is 5% of the share price, then the gross yield is actually 7%. You divide the ff yield by (100%-30%) to get the before-company-tax yield.

You use the gross amount to add to your annual taxable income, then work out what your net income will be after you submit your tax return.

Re: your earlier post, if your marginal rate was 30% then there's no further tax payable on the dividend, and there won't be a refund from the imputation/franking credits.

Basically there is no real benefit to franking credits until you retire, or if you're accumulating shares in your super fund.

 

But it has if you take the returns from 1979. Even anything near that would be great

 

Too much cool-aid being swallowed, probably gonna end in tears at some point

 

So you are saying the $900 000 is not enough to set us up to retire? We already track all our expenses and know we can live very comfortably on $60 000 per annum which is our goal..

 

What has? What PT tells you his portfolio has done?

Start the chart in 1970 and long run market return has been c.10%

 

Pulling $60k/yr (ignoring inflation or returns) will give you 15 years at the same income level. You may need to consider what to do after that 15 years if there is no other capital to draw upon. If you are getting capital growth and income from your investment, it will last longer.

 

or is it looking at markets with rose coloured glasses. Have any of these share investors actually been investing during a crash market?
Even looking at share projections over 30 years, sucks, anything will look OK after 30 years, seriously even mining towns will come back and probably double again?

 

One of my girlfriends did! She used to be an ex banker and is wholly into shares...not LIC or indexing tho...just individual shares...i think her portfolio was down more than a mil during GFC..i thot she will sweat but no...she did not seem to sweat at all..tho she did lament she did not get into property (she does own a very exxcy house in Wahroonga)...

I used to salivate at her dividends tho'...she retired on that..
One thing she did mention is Never dabble in margin loans....

Oh dear...as i am typing this even i'm not sure what is the lesson i am trying to preach to myself............

 

That's good.

Comes down to whether you can service the debt during the downturn, and those nasty margin calls?

I guess you also need nerves of steel to ride it out.

 

Incl. Dividends?

 

We set up our SMSF 25 years ago on 1 June 1992 and over that time our SMSF has mainly invested in shares (and cash).

Been through a few up and downs over that time. So far, never sold a share in panic.

Probably been too frozen with fear to hit the sell button .

 

Total return. Jan 1970 - May 2017 current ; 9.9% TSR.

Please stop rabbiting on about stuff you have no idea about, aside from attending a course and drinking all the koolaid.

 

A little bit of knowledge can be very dangerous

 

Any idiot can look intelligent ,until it all becomes very complicated..

 

There is a reason why people have to be licenced to give financial advice which includes advice on shares. Some comments by those unlicenced can lead people astray. So can actual advice but at those licenced are covered by insurance.

 

Dunno about you...but i'll be happy with 9.9%...tks!

 

Very.

But not if my expectations were 14%

 

Pray can you then share with the rest of us "uneducated" class, what is your own investment strategy to capture 14%?

Say you have $900,000 to invest as alluded to by the original poster? How do you propose to allocate this for a retirement income? (lets assume he has his PPOR paid off...)

(i say it seriously not to jest or be flippant) ..i seriously want to hear from someone who sounds like he has a plan...