Ideal Passive Income Portfolio for Retirement - advice from forum experts

Discussion in 'Share Investing Strategies, Theories & Education' started by sash, 5th Jan, 2018.

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  1. Nodrog

    Nodrog Well-Known Member

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    Yes and use $25K Concessional Contribution to reduce CGT. If have SMSF maybe even potentially use double dip strategy to bring forward next FY’s CC so $50K to offset CGT.

    Not advice.
     
  2. skater

    skater Capitalist -- www.skatepro.com.au

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    Yes, we've had investment income from the IPs for a while now......but initially we needed that to live on. There's not a lot of benefit in me putting $25k in Super now, I don't suppose, besides, this IP won't have much in the way of CG. You might have missed the part where I said IF it settles. It's not unconditional yet & it's the biggest dog in the portfolio.
     
  3. The Falcon

    The Falcon Well-Known Member

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    You are correct and that’s what I addressed. On the weights proposed Scentre (c.17% a-reit weight) is approx 4.1% of Australian equities, and below 2% total portfolio.
     
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  4. skater

    skater Capitalist -- www.skatepro.com.au

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    That's exactly how I feel. Property, on the other hand is easy.
     
  5. Nodrog

    Nodrog Well-Known Member

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    I was the opposite. I found everything about IPs a pain in the butt.

    Shares on the other I find easy.

    Besides quite a bit of the discussion has been about Super. It’s just a structure which can hold IPs just like it can hold Shares. That’s where more of the complexity comes from.
     
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  6. sash

    sash Well-Known Member

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    Issue is 10 years to 60......I will put some in...but my depreciation allowances will negate a lot of the CG liability
     
  7. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Agreed - mine is not advice either but it re-iterates the point for me that it is:
    1. strategy
    2. risk profile and how much time is available
    3. entity/structure
    finally
    4. what you actually want to do with the money ie which shares

    I think @sash needs to consider 1-3 a bit more before deciding what his portfolio will look like as depending on the vehicle/structure the makeup of the portfolio could be very different. A longer term SMSF share portfolio may look different to a "I've got $50k I'm happy to have in high risk"

    Personally I converted profits from a development into a SMSF. I was 40 at the time so waaayyyyyy away from being able to access the money but for me the benefits of the low tax environment of a SMSF was the answer
     
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  8. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    It does depend on if you want to physically use the money/income from shares during the 10 years.
    I'll PM you an alternative
     
  9. Nodrog

    Nodrog Well-Known Member

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    Yes, great points. That’s why at the start of the thread I asked his age and potential structure first. If using Super it’s also much more forgiving if investing in less tax effective assets eg funds with high turnover and hence CGT. In own name this could be bad but no problem with tax free Super pension.
     
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  10. sash

    sash Well-Known Member

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    Super is good...but over 90% of my assets will be outside of it...because in another 10 years I would have probably maxed my contributions ....unfortunately contribution caps and over caps of just under $2m will be in place within 10 years
     
  11. trinity168

    trinity168 Well-Known Member

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    @skater - you're here! :)
    1. start off by searching for the document Beginners Guide to LICs.
    2. I'd have a mix of both LICs and ETFs.
     
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  12. Nodrog

    Nodrog Well-Known Member

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    The LIC Guide might only confuse her more as it goes beyond Beginners stuff in some areas. I should change the title. I’ve attached it for some light bedtime reading.
     

    Attached Files:

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  13. Jingo

    Jingo Well-Known Member

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    Vanguard's Diversified High Growth Index Etf - VDHG would essentially do this, plus a little extra:

    It consists of the following Vanguard Funds:

    a. Vanguard Australian Shares Index - 35.8%
    b. Vanguard International Shares Index Fund (Unhedged) - 26.7%
    c. Vanguard International Shares Index Fund (Hedged) - 16%
    d. Vanguard International Small Companies Index - 6.6%
    e. Vanguard Emerging Markets Shares Index Fund - 4.8%
    f. Vanguard Global Aggrebated Bond Index Hedged - 7%
    g. Vanguard Australian Fixed Interest Index - 3%

    The yield over 10 years from the wholesale High Growth Index Fund upon which this ETF is based has been 5% p/a.

    Franking exists, and has ranged from 13 to 32% p/a.
     
  14. sash

    sash Well-Known Member

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    Noice boys...thanks for making it easy a good read.
     
  15. L3ha7

    L3ha7 Well-Known Member

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    Thanks @SatayKing , I will check it out but over all your post's are gold here too.
     
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  16. Nodrog

    Nodrog Well-Known Member

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    Was discussed in the Vanguard thread. A few issues including tax particularly if held in own name due to rebalancing etc.

    Those stats were based on the portfolio prior to major recent changes so a bit of an unknown going forward. Yield in particular may not be as high and franking likely less.
     
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  17. SatayKing

    SatayKing Well-Known Member

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    Fruit, in a little over nine hours since @sash first posted, the discussion (and errors on my part) have been phenomenal.
     
  18. Nodrog

    Nodrog Well-Known Member

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    In a good or bad way:D?
     
  19. sash

    sash Well-Known Member

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    yes thanks mate...it has been awesome...the creative juices have been put into overdrive...
     
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  20. SatayKing

    SatayKing Well-Known Member

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    It is still all about ME!
    See post #27. ;)
     
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