“Build a portfolio that returns 7-8% p.a”

Discussion in 'Share Investing Strategies, Theories & Education' started by twix11, 15th Jul, 2021.

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  1. ASXGJ1

    ASXGJ1 Well-Known Member

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    Your explanation is in line with what is written in many books and articles but those who are going to retire needs constant source of dividend either at same rate or in incremental rate..... ! Putting money into Amazon or Berkshire Hathaway which purely provide capital growth would be good for young working people as they probably don't need supplement income which increases their tax band.

    So low cost ETF plus blue chip stocks (asx top 10 or 20) would be ideal for my circumstances. LIC don't provide yield (div+capital growth) better than ETF (Vanguard in particular)... IMO.

    Is there any website that can compare total yield (divi+capital) performance of VAS with AFI or ARG?
     
  2. MB18

    MB18 Well-Known Member

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    Yeild or capital growth in isolation is not as relevant as total return. The benefit of one or the other is largley dependant on an individuals tax postion.

    For the likes of Bershire etc, the expectation is that one can sell down his/her holding to meet his/her needs (if I'm not mistaken capital gains are taxed more favorably in the US than dividends which is a contributing factor in BRKs policy)
     
  3. Baker

    Baker Well-Known Member

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    Stock Portfolio Tracker | Sharesight (create a free account).

    Use the 'SHARE CHECKER' tool.

    upload_2021-7-31_19-1-35.png

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  4. ASXGJ1

    ASXGJ1 Well-Known Member

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  5. ASXGJ1

    ASXGJ1 Well-Known Member

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    This forum seems to be way more helpful then hotcopper and other stock sites I have been.

    I do have one query if anyone could direct me to article or provide some clarification regarding franking credit for Dividend reinvestment plan.

    so if I have 1000 ANZ shares and i get $1 fully franked dividend and my personal tax band is ZERO (not working at all) then if i take the dividend then i get $1000 from ANZ and when i file tax i get remaining $428 from ATO as franking credit. (correct me if i am wrong).

    Now if go for DRP then I simply get shares based on DRP share price that ANZ announces. so if DRP price is $25 then I get 1000/25 = 400 ANZ shares. But in this scenario what happens to my franking credit? do i get $428 from ATO or I loose that credit?
     
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  6. Baker

    Baker Well-Known Member

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    1000/25 = 40. But I like your answer better. ;)
     
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  7. SatayKing

    SatayKing Well-Known Member

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    You can apply for a refund of the franking credit.

    Link to application on ATO website

    Refund of franking credits for individuals - application form 2021
     
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  8. Ruby Tuesday

    Ruby Tuesday Well-Known Member

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    You also need to be careful with DRP, the DRP from ANZ 5 years ago has had no growth some dividends are worth less now. If the share price falls your dividends disappear. AMP is a better example all the dividends for the last 2 decades bought shares for around 5 or 7 dollars they are only worth about $1 now. You need ACCELLERATION of revenue. I dont think banks can grow much Share holders , executives and fund manager dont like foregoing a few peanuts to plant a field, only interested in short term figures for easy annual bonus, and not risking a period of under performing the index. Will be left in a cloud of dust from failure to get traction in cloud. For example if you invested your last ANZ dividend in Upstart you could already have a 40% gain now. It might be good strategy to invest your dividends in high growth potential disruptors. APT/ TCH another example
     
    Last edited: 12th Aug, 2021
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  9. ASXGJ1

    ASXGJ1 Well-Known Member

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    have you heard when vanguard distribution for various category (AMIT etc.) will be automatically added into sharesight? last year it happened in september... which is disappointing.
     
  10. SatayKing

    SatayKing Well-Known Member

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    I'm sorry but I don't know. I don't use sharesight or any other software.
     
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  11. ASXGJ1

    ASXGJ1 Well-Known Member

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    is there a competitor for sharesight which is more reasonable for small retail investor? sharesight $20 fees is about $240 and that is only allow you to add 20 shares so over the years if you go beyond 20 then they won't add it unless you update now that is too much of cost for small retail investor?

    @SelfWealth are you planning to takeover sharesight or planning to create something that can replace sharesight? definitely take your paid membership... !
     
  12. ASXGJ1

    ASXGJ1 Well-Known Member

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    so how do you manage your tax and portfolio without software? excel?

    I use yahoo to check portfolio performance and sharesight for tax but sharesight subscription is killing... so looking for something more reasonable.

    yahoo finance is superb and couldn't find anything better without cost so far ... IMO.
     
  13. SatayKing

    SatayKing Well-Known Member

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    All dividends statements and other necessary documentation I save in PDF, merge into one come tax time using a free merge program and submit to accountant using their secure tax portal.

    For the SMSF, the number crunchers look after that once a year. For personal holdings I don't. It isn't mandatory and the tax office don't require me to do it so I see no need. Only spreadsheet is a list of holdings by ASX code and how much cash I've put into each. And I'm seriously thinking of dumping that. I've not looked at it this FY.
     
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  14. ASXGJ1

    ASXGJ1 Well-Known Member

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    That is very true and I have decided not to go for DRP for two reasons, one what you explained and another tax complications and every shares that give DRP mostly trade below their DRP price within a year so why take on DRP? However in ETF i rarely see them trading below DRP price.. IMO.
     
  15. ASXGJ1

    ASXGJ1 Well-Known Member

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    you got good accountant... !
     
  16. SatayKing

    SatayKing Well-Known Member

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    I don't know if you have viewed this thread. The discussion may be relevant to your question about AMIT data and sharesight.

    ETF - annual tax statements not even close to matching Sharesight entries

    And, yes, they are good. If they weren't I'd shift in a flash without any need to concern myself about obtaining previous tax information from them. The reason for that is contained in this thread.

    Record Keeping (CGT / Estate) - Shares / LICs / ETFs ...
     
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  17. ASXGJ1

    ASXGJ1 Well-Known Member

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    you are probably encyclopedia of property chat (investment thread)... :) .. Thanks
     
  18. SatayKing

    SatayKing Well-Known Member

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    Thanks but undeserved. Simply used the "Search" function.
     
  19. Millie

    Millie Well-Known Member

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    Just wondering the name of the merge program you use please?
     
  20. SatayKing

    SatayKing Well-Known Member

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    PDFsam. Stands for split and merge. Basic is free but you are asked to rate it occasionally.

    Just mess around with it a few times and you'll get how it functions @Millie.

    Probably other ones around but it does the job I want it to do.
     
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