Hello, This is my first post, I have to admit I have been silently reading you guys for quite sometime now but never posted anything. I now have a problem to solve, a rather good one and I don't have a solution for it. I need help from senior and experienced members here. My ppor is paid off, and I have an IP as well. there is some money sitting in the offset of IP reducing the interest, around 300K and another 100K invested in LICs. I feel like I can invest the money in offset somewhere else and deduct the higher interest paid on investment loan. Annual earnings are close to 100K and wife is retired. I am not interested in buying another property at this stage. My accountant recommended setting up a trust and buy some more dividend stock/LIC/ETF there. This will save us a lot of tax every year. Is this a good strategy for us? I am 55 by the way.
Why would a trust save you tax? Do you have children or grandchildren over 18 with no income? Get better advice. At your age super might be a better vehicle.
@prop_noob - how will the trust save you tax? If your wife is retired, do you not have the option to invest in her name?
Most likely - what the accountant is talking about is putting the income generating stuff in a trust so you can have the flexibility to directing the income to the lowest taxed person for that year. The Y-man
If you do that and situation changes, there may be cgt implications to sell and move to another person etc down the track. The Y-man
