Ideal Passive Income Portfolio for Retirement - advice from forum experts

Ha ha. Very good. I still do many stupid things. Luckily, the damage is contained only to me (mostly.)

 

IML tried to list a LIC (QVI) version of their equity income fund over 12 months ago but the key trader running the fund left at that time. So they had to pull the LIC IPO, postponed indefinitely. Very embarrassing.

DJW is basically the same thing but performance not as good as IML from memory. As for the future who knows?
Djerriwarrh :: Home

We own IML’s QVE (Ex-20) which is a listed version similar to a blend of IML Future Leaders and Small Companies Funds.

IML are an excellent Mgr with a long term history there’s no doubt about that. One of the best in my humble view.

 

I like IML, and that comes from someone who leans heavily to asset allocation / indexing.

The killer that you don’t see in headline performance numbers is post tax performance. Until AMIT implementation, managed fund structure resulted in inequitable tax treatment (redemptions that result in net outflows create realized CG that is attributed to all holders). Another aspect overlooked is the effect of portfolio turnover within the fund ; high turnover resulting in short term CG that is returned to investors each year. Terrible when you consider that the published results make no mention of this.

IML among active managers has my respect because they both publish annual franking levels of distributions and portfolio turnover figures, in doing so they take post tax performance for investors into account.

 

Yes great point about CG. Equity Income funds in particular are best suited to low / no tax environments with a Super Account Based Pension being the ultimate environment.

 

Or me!

 

WARNING. If you are under 50, pls run. The thread is exclusive to middle age member.

On a serious note, this thread and others related to LIC have been an eye opener.

 

@Nodrog. May I ask about your involvement in LIC etc. Were you working fulltime somewhere else and at the sametime build your wealth from LIC?

 

What I find really scary is that some PC members don’t know about LICs and EFTs and think they are a relatively new investment option.

I am 61 and ARG is 10 years older than me .

If an educated and intelligent community of investors like PC is only finding out about LICs and EFTs, what chance is there for all of the other bogans/ferals who live in this great country?

 

Yes worked full time till 41 (now 57) then gave up work to move around including overseas to let wife persue her career. Part time drummer in bands from 10 till around 30 earning good income. Employed after senior education as office clerk for 10 years. Went to uni to do IT degree. Worked in IT for 10 years then retired as per previous.

Took a much bigger interest in investing when retired at 41 but had a reasonanably keen interest long before that.

This from another thread might give more background. I actually started dividend investing in my twenties thanks to Daryl Dixon. But then after some years thought I’d be smart and try trading for a number of years. Oops, back to dividend investing with tail between my legs. Then wife took on a job down the track that made it near impossible to invest in Shares for a decade so sold the lot again. Wife left that job so back into dividend investing yet again and have stayed there ever since with no intention of ever changing again.

Even when I couldn’t invest in Shares due to wife’s job I still maintained my keen interest in share investing. Had to do the property thing whilst we couldn’t invest in Shares. Didn’t enjoy IPs at all. But there wasn’t much choice otherwise. Couldn’t wait to get rid of IPs (sales staggered to minimise CGT) when wife left that job.

 

He he yes the three biggest LICs are hardly new kids on the block. Here’s when they started:
AFI - 1928
MLT - 1938
ARG - 1947

 

watch sayin' ole men rulz?

 

Nice piece of humour there but again being serious, I think it would be wonderful if younger generations started considering these and other investments.

I know they have a huge amount on their plate; accommodation; studies; jobs; relationships, which are all important, yet it doesn't take much in the way of cash to start - my first foray into AFI cost me $675 and it has been built up from there. I recognise the same number of shares would now cost approx $3,200 and that amount of money may be difficult to accumulate. Still, it can be done I think and then they have the best asset of all. Time.

About the same chance as dumbos like me probably. I knew nuffin and still don't know much. I did buy some shares early in my life but it wasn't a great outcome and then overheard some fella where I worked talking about shares, became curious again, bought some and it went from there. That is essentially how it happened for me. How others twig or can, I've no idea.

Always hear the theme Should be taught in schools, etc but I feel the education system is overloaded with pet interests already plus how many educators in the school system are financially aware to such an extent they could teach what is considered a boring subject? All but one of the students would likely fall to sleep within the first five minutes.

 

I think you first have to know of a product's existence before you can make the decision to invest in it. They know there's property & they know there's shares, but don't really put any thought into the types of property & shares that are available until they start to look at it more closely.

 

Makes one think looking back to when Ian Somers had that talk around the table at the Salisbury high school about the 2 units they bought in the hastings street noosa when we just sat there with brenda asy and other investors --being book smart not not always necessarily make people on a equal path of wealth or power..people always look down on the ones that go it alone big mistake ..

 

I picked the youngest so I wouldn’t shock people.

If people find out that AFI is 90 years old, then ...

 

You may call yourself a dumbo but I choose to disagree. It’s easy to learn about the technical aspects of shares etc and impress others with this knowledge. But you my friend many years ago shared with me the most important thing of all and that is “wisdom”. And for that I’ll always be forever grateful. And I still continue to learn from you things that others sometimes miss.

 

@Nodrog -your posts contain valuable information and you are allowed to say words like SANF to confuse people like me

 

I'm taking a leaf out of your book @SatayKing and have the intention of adding around 25 to 30k per annum to a select 3 to 4 lics from a youngish age 34 for at least the next 20 years!

Given dividend reinvestment and compounding and that magic element of time here's hoping to a good final result!

All of this is only going to be made possible by living within my means staying the course and not changing horses mid race!

I'm not smarter than the people I will be buying from!

 

It's a hot day here, and probably hotter elsewhere, and the neck of the J-45 is feeling sticky so may as well bore the living s&it out of anyone foolish enough to read my random thought processes.

First this thread has, as usual, drifted way, way off from the original intent of @sash 's post. Leave it to others to decide whether that is good or bad but I'm exceedingly lazy and cannot be bothered to create a separate thread

@skater, I think you're close to the mark about knowing of the existence of a product. However, I believe there is a fundamental aspect and that's being curious and exploring.

I have been just as guilty like many, and merely looked at my immediate circumstances and, sure, I wanted money. Nothing wrong with that as long as you understand it doesn't care about you, it is useful as a purchasing product and tool. Beyond that it's pretty meaningless in my view. However, with me I started to ask What's available? Looked at property of course. Nup, didn't have the money, didn't know how to get it really and, aside from wanting a home, hearing a number of others complaining about dealing with it. Dropped off my want list.

So, although I had dabbled with shares previously, overhearing the bloke I work with, he was actually my boss and an truly awful person, bragging about shares, sparked my interest. And then gradually I wanted to know.

That is the important element in my view. Wanting to know. Errors will occur, goofs will be made. Those will always happen. Still does with me but becoming and staying curious is essential as far as I'm concerned.

That's my summation for what it's worth. Now how you encourage people to be curious I've not a clue. Better minds than mine have probably dreamed up something but overall whatever they have cooked up hasn't seemed to have worked - yet. Whether it ever will is a moot point.
I can understand to some extent why many prefer property though. You can see it for a start. Not so with shares which are numbers floating around in the ether out there somewhere.

Very gracious of you @Nodrog. It may surprise you but I am impressed with a number of posts and thoughts you have made. Better be careful here otherwise it'll end up in a mutual admiration session and that is a big no-no.

In the short time I've been on this site there are a number who have lighted my curiosity @Il Falco, @oracle with their posts to name a couple. There are others of course and I even occasionally read the property threads! That doesn't mean I adopt what they have to say. It's always a matter of reading and then deciding if it's right for yourself and acceptable to one's own mentality and approach.

Anyways, off to a local pub for a G&T and some snacks to go with it. Only around the corner from me and it's fun watching people - and listening to them complain about how hot it is. Hmm, get to the bloody swimming pool if that's the case.

 

Given how much I ramble on I’m sure some here would be happier if a did a lot more STFU.