LIC & LIT Listed Investment Companies (LICs) 2019

Thanks Gordon....in life , sometimes Simple is Best!

Last question: Why is Tax an issue if one never sells? and that grandson of mine holds it for 30 years? (scratching my head)

 

He said over time the portfolio will rebalance to have a higher proportion to overseas shares. Over 40 years it will go from 75/25 to 65/35

Barefoot is putting 180k of his own money on it on monday

 

My interpretation only of course but from this

Introducing: my brand new “idiot grandson” share portfolio

one way of viewing it is it is/was supposed to be a "set and forget" but from what you've reported @Synergy that position is already compromised to some degree. I suppose it's reasonable from one aspect albeit not quite from another.

 

I thought VTS has 15% death tax

 

Kudos to him, he hasn't led his followers too far astray.

I personally would have gone for VDHG.

3 funds and a w-8 form, how's a poor stoner meant to cope, fair crack.

 

going to stick with vas/vgs/afi/mlt

 

In VDHG there is hedging of equities, interest from bonds and rebalancing which would likely result in more tax than an all unhedged equity portfolio where rebalancing is done with new cash invested.

Taking into account the likely mentality / priorities of a 20 year old as @dunno suggested VDHG despite the tax would likely be more suitable. The unlisted version of same with periodic set and forget Bpay that removes the wild young thing completely from the investing process would likely offer the best protection from his / herself.

 

I’ve never been able to get to the bottom of the US estate issues. Hence why I only invest in locally domiciled funds.

 

Again seems strange to me. I thought the higher exposure to unhedged global equities with associated currency risk would be greater when young then if anything increase local exposure or at least include some hedged equities closer to retirement. That is assuming the grandson retires in Australia and in spending in local currency. Depends also if other AUD assets are held.

In both cases though there is still high exposure to local equities so not a big deal. Just thought the reverse progression made more sense.

Maybe there’s other issues here that the Barear#e Investor has in mind that I’m missing.

 

Not all that different to our portfolio where love is shared between ETFs and LICs.

The greatest risk to a young investor I think is having a broking account where Buy / Sell is just a click away.

 

With the overall objective to be a "do nothing" portfolio for an idiot grandson, it is odd to have US-domiciled VTS/VEU....
Also strange to have no LICs to smooth out the divs.

 

Agreed ! and thanks ...

The young 20 year old would go crazy with trying to Rebalance...best keep it Simple

 

Is this on his site?

 

I read on another forum that somebody recently received a response from Vanguard Australia that they were in the process of converting VTS into being Australia domiciled but refused to put a timeframe on it. Don’t know the veracity of that claim though.

It has been on my list of things to do for a while to call Vanguard Australia and ask them about it. Might get to it this coming week.

 

yep I forgot to enter my details on share registery for MIR earlier this year and got cheque from them! Then had to work out how to bank it with bank west

 

on his blueprint which finishes for good next june.

Scott is copping it a little bit for members. Seems to have jumped on the forum to calm everyone

people of reddit been doing vas vts veu for some time

 

Probs because they delayed that release for 2 months only to get a 3 fund vanguard etf portfolio

 

How many years has Pape been publishing Blueprint and charging for its subscription with it’s numerous direct share recommendations etc then after all this time his conclusion to subscribers as the publication is being shut down is to buy a Vanguard 3 index fund portfolio.

@Redwing has been offering far superior value than that here free for years.

 

Would have been funnier if he had just recommended VDHG. Obviously went with the three funds so it looked like he had put some sort of thought into it.

 

Fees were the likely determinent in that. Behavioural factors / admin however appear to have been ignored?