LIC & LIT Listed Investment Companies (LICs) 2020

This is the thing isn't it... once you have your LIC/ETFs set up and are merely ploughing more $ into them as you can, there really is little to do. They don't often change strategy individually, so not all that much to talk about...

I find I'm much calmer after adopting this strategy in the direct super fund - work to do outside of super still, however.

More coffee / grog diversions. I got a free muffin with my coffee this morning on my frequent caffeinator card. Raspberry and coconut. It was supposed to be a cookie, but they didn't have any so I was offered a muffin instead. Mmmm. I feel slightly ill. It was huge.

 

Woohoo one of life’s milestones, Tax Free Super. Although somewhat tempered by my first phone texts of the day being reminders for tomorrow to have a tooth replaced with a crown and an eye operation on Thursday. So essentially I’ve reached an age where I’m falling apart.

 

A significant birthday @Nodrog? if so have a good day

 

What you say is true @RogTheBear at least for me and a few others. The surprise to me is why did it take me so darn long? No point reflecting on what was but possibly others may pick up on the approach and be better off financially and in other ways.

That said I think @DoggaPP got to the crux of the issue in one of his posts in stating "You feel like you should be working hard at it, stressing over it, being super smart over it, keep yourself in front of the pack, being professionally impatient .... all those things we purposely do in a career environment and a property investment environment."

Don't know about the property investment aspect as I've never held one.

Best of with the eye op @Nodrog. It's been a problem for you for years so fingers crossed it goes well.

As for the crown, well, it may mean you'll have to further deplete those dividends which means less available for investment which means....

And cease salivating over your new Tax Free pension stage. It's unbecoming plus you'll upset those who won't get or have one - such as me

HB too.

 

And those dentists/eye specialists will help your wallet fall apart too if you dont watch out!
Good luck with it all, you'll have a new lease on life after these enhancements!

You buggers are talking me into the LIC approach each time I visit here.....best I stay away....

 

Not often I receive a gift with “WARNING: FLAMMABLE” on the box:

 

The Force is strong in this one.

 

Thanks for the excellent point and reminder. I'll head out for one.

 

Have Gold level health cover, cost of crown is $1,800 and out of pocket expense of $500. Getting old is not cheap.

 

Not cheap? Tell me about it! He he.

I dropped extras health cover. Wasn't worth it for what I was getting back. Put the difference into a seperate account (yes, folks, I do that sort of nutty thing) to cover ancillary costs. I think I'm well ahead.

Also pay health insurance annually to defer the increases for a year.

Nice brew just arrived. Time to self-medicate. Good barrista gives me a permanent seniors discount even though I've never asked for one. Beats finding 20 cents in a parking meter

 

Bringing this thread back to LIC's ha-ha
topped up some CIN & DUI today happy days... although I am enjoying the coffee chat!

 

Been holding off withdrawing any SMSF pension this FY till today now it’s tax free. So the upcoming pension withdrawal given it’s not required for living expenses will need to be invested in own names? Um what to buy. I want MIR but bloody NTA premium.

Eventually the tax situation outside Super will get to the stage where it’ll be sensible to do like @SatayKing and commute the pension back to Accumulation. My wife still has around 18 months before she can start her pension at 58.

 

Happy Bỉthday @Nodrog !

 

I've considered this even though I don't have @Nodrog 's fancy gold cover. Because it's the sort of nutty thing I do too... (started saving for my next car the moment I drove the last one out of the showroom, fer instance...)

I'm on some grandfathered NIB cover for "young people" (ha!) and it pays bugger all for extras - and I'm getting a couple of dentist appointments a year and some glasses every three years and that's about it. When I had to redo two crowns last year I discovered I wasn't covered at all - ka-ching! Sort of got me wondering what the point of it all is and whether I'd be better upping the hospital cover and ditching the extras...

And if you think crowns are expensive, you've not had the joy of a root canal... they start at about $2500, I think.

So this post is even slightly on topic, I noticed in my new direct super fund this morning, "income" from three of the ETFs (and it will be the same for LICs, soon...). VAS / VGS for the January div payout were two of them, but that hasn't occurred yet. So I have it showing in the income column, but don't actually have the money. It hasn't, I don't think, added to the total as the cash balance seems about the same as it was but I didn't check closely.

Bizarre form of accounting - it's like a "receivable" - owed but not yet received - it appeared after ex-date, so I know I'll get the money, but it's not actually there yet. Hmmm...

Think I'd prefer to know about it when I actually have it...

Oh, and happy birthday @Nodrog - that's fierce rum!

 

It will be difficult for many to understand why do this. After all a tax-free pension at age 60 is THE thing isn't it? The toast of the BBQ brigade when you announce with great fanfare you've made it and how wonderful you are while brushing aside the issue of relatively generous tax concessions for some, frugality or, maybe, an inheritance from ya Granny. Sarcasm aside, which is not directed at anyone and merely is me being me, it does seem odd approach.

However, as pointed out by @Nodrog if your personal tax situation warrants it then it means you have a very, very good income external to superannuation. So unless you are intending to do something constructive, however defined, with the tax-free pension why bother with it? Again, it revolves around personal attitudes.

And it could come as a surprise what can occur if you decide to revert to accumulation phase. I'm not overly interested in the SMSF now. All LICs participate in the DRP. The EFTs don't and there are a few reasons for it.

First, I do not have to think or take direct action over what to do with the dividends or when to do it. To me it's a plus.

Second, with the distributions from ETFs I can decide on where it will be allocated; all international, all home county or split. It provides me with various options. The distributions will not be placed with LICs as they are covered by DRPs

The final reason is I consider it meets the duty of a Trustee to monitor the super fund. While I may say things such as my SMSF, I don't view it in that way. I am the Director of a Company which is the Trustee of a super fund of which I am a member. Places a slightly different nuance on it.

Anyways, the ramblings of an dumbo for what they are worth.

 

Stop looking at such things. Does nothing for your eyesight and then you'd need to access your health fund for optical should you have excess cover which in turn will cause NIB to up prices no matter what to the detriment of yourself and other members!

Sheese.

 

You do realise what will happen with his "under Bundy" posts. So don't encourage him.

 

Just woke up from a snooze. And no I haven’t consumed the Rum.

Looking at it simply if taking a super tax free pension keeps adding to personal assets resulting in a tax rate of greater than 15% on personal income then if one doesn’t need the income it makes sense to roll the pension back to Accumulation which is capped at 15%. The beauty being should one unexpectedly need some of the accumulation balance it can be withdrawn at any time.

Because old laws allowed a lot more in Super that’s where we focused most. Now in retirement it’s a case of balancing between Super and personal assets to minimise tax.

 

Are there distributions due? I rarely keep track to be honest. The first I know about it is when I receive an email from the registry. Bugger that means more decisions on where to reinvest. See retirement still has its pressures.

 

Take the pressure off with a few coldies!
Many happy returns Nodrog.