Ideal Passive Income Portfolio for Retirement - advice from forum experts

And I guess it also depends on your portfolio. If you are solely Oz LICs and cash, no dramas. However if you are across multi assets / geographies you don’t want earnings withheld as it interferes with rebalancing.

 

Yep. Just change to “sell on your terms”.

 

Will a younger man do instead?

 

Hmmmm.... well, a couple of those income streams require zero effort once generated & they aren't property or shares.... I'd call that truly passive.

 

Well I was thinking “simple” for the set and forget income investor. Imagine what some here are thinking when then trying to comprehend:

And back to outsourcing cash management in the case of LICs. You get this service included for around the same fee as Basic Index ETFs charge. So the service is basically free.

 

Not in my case.

 

A bit of trivia regarding ETF. As I have said, the only ETF I currently hold is STW. It's mandate is the ASX 200.

If you peruse the Daily Fund Update, you will see the number of shares it holds for each company. The Net Asset Value of the fund being $3,662,562,912 as at 5 January. On that day it held 6,129 CBA shares. That's not even a blip on the daily trades of CBA shares.

As an aside, I was highly bemused at the time when clients of Storm Financial complained about “their” shares being sold cheaply when the total NAV of Storm's index investments was around $40M all up. While I felt sorry for them, given what the NAV of STW was at the time and the number of shares it would have held, the claims were so out of whack with reality they were farcical.

Anyways. STW holds some possible crap at the smaller end which have made it to the ASX 200. It's partially why I didn't explore Vanguard which mirrors the ASX 300 I believe. Sure there is likely to be some companies in the ASX 300 which will become bigger but I reasoned if that happened, STW would include them at some stage so I didn't bother.

The other aspect is you will not see any LIC's, e.g. AFI (market cap $7.45 billion) or ARG ($5.7 billion), in STW. It would be doubling up because of the shares those entities hold within their respective structures. Sure, SOL ($4.26 billion) is in but it isn't an LIC. It is classified as an energy group. Shows how strange the penchant for classifying things can be I reckon.

Usual disclaimer in that I can be, and probably am, completely and totally wrong.

 

Probably a better choice for me and it is legalised now !!!

 

Are there any wedding companies listed on the ASX. Might be a good short term trade.

 

Only if s/he is mega rich. The young can be so stupid. I know having been young once.

 

Super smart money, by Michael Holmes. Someone on here recommended it to me also. Excellent book.

 

When I married my wife quite young she came from one of the poorest families I have ever known. They lived in an old run down corrugated iron mining shack (rented for $10 a week) with a tin mine and processing plant at the back fence. Due to nasty injuries and ill health her father couldn’t work from a relatively young age. My wife helped him with heavy labour when he owned a small tin mine earlier on. She paid for her own Uni education working three low paid jobs.

But though hard work and education she eventually worked her way up into higher paying roles. Her poor family upbringing but with great parents made her value money then when we eventually had decent money coming in we valued it highly and saved well.

So I’ve been a very fortunate man to have married such an incredible woman. Sounds soppy but I love her more now than ever. Expecially since she’s learnt how to brew incredible beer.

 

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https://www.spdrs.com.au/etf/fund/excel/fund_allholdings_STW.xls

 

Thanks for that info. Haven't been to that site for a long time nor have I even looked at the holdings of STW for yonks.

 

all i was looking was how to get started on a retirement portfoluo.....

this is great stuff. there are really some with knowledge of etf and lics that would make the pros look like chumps.

enjoy...its gold

 

LOL. Definately not in my case. I’m certainly no pro, amateur at best.

 

I don't think that's reserved for just the young.

 

LOL. CLASSIC. One only has to listen to me.

 

Have any of you looked at some of the unlisted funds that are actively managed to provide consistent and growing income from equity.

Investors Mutual Equity Income Fund - This fund has been around for a long time and has a long track record of generating a growing income stream and has delivered fairly consistent outperformance compared to indexers.

Plato Australian equity income - This fund has also been around for a long time and has also a long track record of outperformance and growing an income stream. Also consistently outperformed indexers (Plato seem to have a lot of PHD's managing things as well).

Both of these funds look to generate additonal income slightly differently, i beleive investors mutual use an equity option strategy (selling call options) to generate additional equity on the portfolio whilst Plato do not use options but build their portfolio to target a higher dividend yield.

Do your own research of course just thought I would throw these funds out there as something to investigate if people are looking at income focussed equity investments.

 

And just like the discussions on property, it is for that reason that I value the input from some of these experienced investors. I could go to a heap of Financial Planners and not get the same information. In fact many would just sell you what they get the best commissions from, so I think that starting here is better than anywhere else.