I have moved onto analysis paralysis

Ok folks - I need some direction.
I am in the process of getting my long term share holdings account up and running. I have been reading everything and anything share related, and now Im running in circles.
My basic philosophy is one of long term (>10years) 'low touch' investing. So basically a set and forget set up. I have an initial deposit amount, and then want to make regular additions.

From my research so far Im looking at a split of
VAS, VGS each holding 40% VAF 10% and Retain 10% in cash.
All divs to be re-invested

I have several options in regards to funding
1) my own name
2) an already existing pty ltd atf family (discretionary) trust.

I have an amount (lets call in $100k for the case of simplicity) in cash which is fully offsetting a non-deductable loan.
I could repay the loan, then redraw the funds.
Future investments could be made with either cash or additional debt.

One thought was to repay the loan, then on-lend the funds to my trust. However, the loan is then non-deductible to me (I am non-resident for tax), until such time as I become resident.

Alternative is to invest in my own name - thus making the loan deductible to me, however, I believe that as a non-resident I miss out on Franking credits.

One plan I had was to invest now in my own name. Then, when I become resident (lets say 5years away) I can sell the lot, onlend the cash to the trust, and re-purchase the same portfolio. As a non-resident Im not liable for CGT on shares.

But that makes my keep it simple approach a bit more complicated.

So
1) thoughts on my portfolio holdings?
2) thoughts on the best structure for investing.
3) What am I missing?

Thanks
Blacky

 

@Blacky

1) The portfolio holdings are typical of passive investing, so no problem there
2) 10% buffer cash always a good idea
3) Regarding structure, surely one for a visit to a reputable accountant/advisor. Money well spent.

@austing comments and insights on this overall area are well worth reading many times over.

 

If you're referring to my comments about home brewing well yes that may be worth reading. Anything else I've written treat with caution as it was most likely written under the influence.

 

@Blacky , the resident and venerable @austing is also a humble - and it would appear - occasionally inebriated doyen of passive investing. He writes not only under the influence of home brew, but years of financial freedom practical wisdom. Recommended reading

 

He he, I'm sure some here don't think the same way.

Was down the coast, Mooloolaba, last week enjoying that horrible thing (according to some) called retirement. Ah and yes the wonders of passive investing. You could disappear to a deserted island for a year or 10 and totally forget about your investments. Just spend the dividends (we try our best albeit unsuccessfully) as they roll into your bank account.

 

Welcome back @austing how was your "holiday"

 

Fantastic as usual. We go to the coast for a few days around every 6 weeks except for the hottest part of the year. Definately not frugal when there although we're not really frugal in general nowadays. No use having money if you can't enjoy it. Stay at Mantra Mooloolaba on the esplanade with everything at our doorstep. A nice change from lots of work in our productive gardens and yard at home.

Spent time living and working (wife) overseas and have done a number of overseas trips in the past. In fact my wife has spent a crazy amount of time travelling with work over her life. She's so over it. So travelling overseas doesn't excite us much anymore. Regular short holidays are just fine. And we are more homebodies nowadays happy to be living a productive lifestyle. A wonderfull productive but stress free life.

I still say that anyone who reckons early retirement is a bad thing is doing something wrong. Our most valuable asset is TIME so make the most of it.

 

Well said

 

I suppose the worst thing about being retired is you never get a day off from it

 

Thats why I put holidays in inverted commas, I thought it was a great concept to be going on holidays when retired. #lifegoal #mr&mrsaustingrolemodels

 

On the positive, every days a Saturday

 

Hi Blacky

Are you just on Holidays in Bali, or now residing there?

Re:

VAS Vanguard Australian Shares Fund (fee: 0.14%) 40%
VGS Vanguard MSCI Index International Shares (fee: 0.18%) 40%
VAF Vanguard Australian Fixed Interest Fund (fee: 0.20%) 10%
Cash 10%
And all divs to be re-invested

With VAF and Cash (what denomination) is the cash for Really Bad days on the market, or is that what VAF is for? Are you holding cash elsewhere or this is it?

Are you adding to each on a regular basis, or just set n forget and rebalance annually back to your desired allocations (40/40/10/10), if the latter maybe you could take your divs throughout the year and use to allocate appropriately?

Just some random thoughts when looking at the above

 

He he, getting slow of mind with age. Yes you could say I was having a holiday from our usual holiday

After four hours in the gardens this morning (5 - 9am) I feel like I need another holiday already. Try to get outdoor work done before the heat and cancerous UV rays starts ramping up. So early morning is the go. Leaves me free to do whatever inside during the heat of the day. In the cooler months a lot more time is spent outdoors embarking on new projects and major maintenance.

But retirement is not so much about permanently being on holidays but doing all the things YOU choose to do whenever you want. Importantly you have to have a reason to be motivated to get out of bed in the morning.

Some here occasionally have a go at me for my time spent on the forum as if I've got nothing else to do. But that is just one of a number of hobbies I have. Bit like the retiree who likes to do charity work I suppose. My form of charity is occasionally helping others on the forum with basic commonsense investing and for those that want a life. That is investing as a means to an end, not as an end in itself. I don't have to do it and sometimes decide not to as other things take priority or I get bored with it occasionally. No doubt regulars tire of the same old message but my posts are often in responce to newcomers.

Damn chickens screaming their guts out again wanting their tractor moved to a fresh area of lawn. Better go tend to them. They're pets and extremely spoilt so tend to boss us around to get whatever they want.