LIC & LIT Listed Investment Companies (LICs) 2020

Discussion in 'Shares & Funds' started by RogTheBear, 1st Jan, 2020.

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  1. Isla_Nublar

    Isla_Nublar Well-Known Member

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    Conversation starter - for those with SMSF, would you go that route again and establish a SMSF, would you use something like a member direct fund in an industry/retail fund but still chose your own shares, or would you just go an "off the shelf" fund (industry or retail) and forget about it. I find it interesting that a few here invest in LICs / ETFs as they cbf (I'm one of them), yet they can be bothered to run a SMSF.
     
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  2. number 5

    number 5 Well-Known Member

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    Good question, being younger (32, wife 27) I never felt like we had enough in super to go down the SMSF route. We are now there, but I haven't done so yet. I am happy enough with our Hostplus accounts all in equities. I am waiting to see what Vanguard do with super before I make any fundamental changes.
     
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  3. SatayKing

    SatayKing Well-Known Member

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    Probably go the Industry Fund route and stick with it. It depends what you grow into I think and if it works you're not likely to change the approach unless there is a radical change in attitude.
     
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  4. Zenith Chaos

    Zenith Chaos Well-Known Member

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    There are industry super funds that allow for a cheap ETF equivalent portfolio. The only reasons to choose SMSF would be either:
    1. After a certain dollar invested amount a low cost SMSF with fixed fees becomes cheaper
    2. Investor believes investing outside index etfs can achieve better returns. This could be active ETFs, LICs, individual shares, gold bars, investment properties, paintings etc.
     
  5. ChrisP73

    ChrisP73 Well-Known Member

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    3. Invester believes the net impact of tax treatment at the entity level for pooled super funds will negatively impact total performance vs ability to better control tax outcomes in an SMSF, and don't want to get locked into a single fund's direct investments option due to lack of portability of underlying investments.

    And could be a combination of all 3. Also 2 doesn't have to be just better performance but could be more suitable asset mix for optimising performance vs volitility to suit the fund members objectives eg ability to rebalance equities and gold.
     
    Last edited: 28th Jun, 2020
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  6. FredBear

    FredBear Well-Known Member

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    Avoid having an SMSF if you will ever be a non-resident. Generally there are no issues being in an industry fund while non-resident. Lots to consider if you have an SMSF and become non-resident.
     
  7. SatayKing

    SatayKing Well-Known Member

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    SMSF: get cash the minute I want to withdraw it.
     
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  8. exp

    exp Well-Known Member

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    Would you mind expanding on the non-resident part?
     
  9. FredBear

    FredBear Well-Known Member

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  10. Zenith Chaos

    Zenith Chaos Well-Known Member

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    Totally agree with you @ChrisP73. There are tax anomalies. Did we ever resolve the difference in Sunsuper returns?

    By better performance I mean in a statistical and total risk point of view. Gold for example will generally underperform as an investment but in a hyperinflation scenario it could be a lifesaver. That is, gold is only a risk informed hedge against a black swan (small talk) type scenario.

    All my hedges are outside super given super's accessibility is on a much longer timeframe than money in my own name.

    If I reach 1M in super I may consider SMSF. Until then I am sticking with el cheapo industry funds unless I find out there is a dodgy tax implication I am not privy to.
     
  11. SatayKing

    SatayKing Well-Known Member

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    Definition of successful investor:

    One who waits until it's the "right" time to buy, does so at the age of 75 but sadly dies the next year. The charts were spot on though.

    Back to coffee and ennui of an investing nature.
     
  12. SatayKing

    SatayKing Well-Known Member

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    Are we there yet? Wherever there is.

    I'm too busy to know.

    [​IMG]
     
  13. monk

    monk Well-Known Member

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    Ummm, yeah sure, why not? :confused:
     
  14. SatayKing

    SatayKing Well-Known Member

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    Fabulous.

    As everything is in safe hands it means I will now switch to Rip Van Winkle mode and get on with things which are important.
     
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  15. Nodrog

    Nodrog Well-Known Member

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    Bored ****less with the markets but busy as outside when cooler weather makes doing so a pleasure. Other than that indoor activity in part involves improving our Asian cooking skill using much of our home grown organic produce. Helping the wife prepare countless dumplings today to freeze for future consumption.

    Simplification has made investing dis-interesting but given past bad habits I see that as a good thing!
     
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  16. RogTheBear

    RogTheBear Well-Known Member

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    PRS seem to have lost he capacity for shame.
     
  17. SatayKing

    SatayKing Well-Known Member

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    It's just you, your guitar, a cable, your amp and a volume knob.

    The Bear Grylis of the electric guitar.
     
  18. SatayKing

    SatayKing Well-Known Member

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    So true.

    Should Qld open up on 10 July, a plan which is in place, will be implemented to relieve the boredom. Have to get the timing right, ensure a jar of Maccona is packed and install the James Bond revolving number plates on the car. That or some torx bits for the screwdriver just in case the phillips won't work.
     
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  19. Isla_Nublar

    Isla_Nublar Well-Known Member

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    I'm too fat too worry about James Bonding it, but a holiday on a QLD island somewhere right about now sounds amazing!
     
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  20. SatayKing

    SatayKing Well-Known Member

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    Hmm, some who live in the area, and some who don't, consider Mossman is an island within Qld.
     
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