LIC & LIT Listed Investment Companies (LICs) 2020

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

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  1. SatayKing

    SatayKing Well-Known Member

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    I'll second that @TAJ.

    And it may not necessarily be the trigger. Individuals and households have differing objectives and approaches. It could be they are already on a good wicket irrespective of tax rate. re-invest a goodly portion of their personal income so decide they do not require to drawdown an account-based pension. Many variations.

    January LIC challange

    No post without some reference to coffee, beer or other forms of alcohol. Munchies can be included is you've run out of coffee or booze - highly unlikely.

    OK I admit these wacky thoughts are caused by having too much coffee today (see what I did there?)
     
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  2. TAJ

    TAJ Well-Known Member

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    Do most funds allow the option of rolling back to accumulation phase?
    Stop bringing up new ideas, otherwise I'm going to have to start drinking coffee!
     
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  3. Isla_Nublar

    Isla_Nublar Well-Known Member

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  4. Nodrog

    Nodrog Well-Known Member

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    Thank you all.

    Yes Big 60. My Wife being diplomatic wished me Happy Tax Free Pension Day this morning rather than mention 60. I’ve trained her well.
     
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  5. Nodrog

    Nodrog Well-Known Member

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    SMSFs can but no idea about the rest. They can by law of course but not sure how they handle admin and what the cost would be.
     
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  6. SatayKing

    SatayKing Well-Known Member

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    Short answer is yes you can. It can also be a partial roll-back into accumulation phase.

    A number of super funds across the board had to revert to full or partial accumulation phase due to the 2016 Budget with the Transfer Balance Cap arrangements.

    Doing some heavy number crunching while having a coffee or a coldie (but not too many of those) would be required though.
     
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  7. Phar Lap

    Phar Lap Well-Known Member

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    So can I ask, how much money are you guys talking about in each of your respected portfolios?
    you can use things such as: >1m or 2-3m, 10-20m or >50m

    just an indication of the level of investment is what Im trying to grasp as far as how much in income you are receiving

    Of course you can refrain from answering and tell me to MYOB!
     
  8. mistercoffee

    mistercoffee Well-Known Member

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    Also, your current age is the smallest whole number that is evenly divisible by 1, 2, 3, 4, and 5. Very auspicious. Happy birthday mate.
     
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  9. Nodrog

    Nodrog Well-Known Member

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    You could include say 5 - 10m which seems to be a gap in your ranges. And I assume that excludes PPOR and net of debt.
     
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  10. geoffw

    geoffw Moderator Staff Member

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    Fixed it.
     
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  11. mistercoffee

    mistercoffee Well-Known Member

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    Even more auspicious.
     
  12. mistercoffee

    mistercoffee Well-Known Member

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    That's how it has been with me, ever since I offloaded the ips. These days, instead of dreading that I might receive an email from a property manager regarding maintenance issues, I look forward to emails telling me of dividend increases and even special dividends. How good's the Aussie sharemarket.

    This morning I met up with some friends at a cafe. I try to avoid barrista coffee (I much prefer my own home brew), but just to be sociable I had a long black and a blueberry muffin. But I almost burst out laughing when one of the party ordered a decaffeinated soy latte. The world's gone mad.
     
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  13. Nodrog

    Nodrog Well-Known Member

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    I hated IPs, one income event but countless expenses and nasty surprises. Shares = one income event but no expenses. Truely passive investing, nothing to do. As @SatayKing once said, “bliss on a stick”.
     
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  14. kierank

    kierank Well-Known Member

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    You are sounding more and more like PT :p.
     
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  15. geoffw

    geoffw Moderator Staff Member

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    Yet, if it hadn't been for the fantastic growth I had with IPs, all highly leveraged, I would not have been in the position to buy useful quantities of shares now.

    If it hadn't been for dabbling in business, I would have been in a far better position to buy shares now.
     
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  16. kierank

    kierank Well-Known Member

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    Like you, if it hadn't been for the fantastic growth I had with IPs, all highly leveraged, I would not be in the financial position I find myself now.

    Unlike you, if it hadn't been for dabbling in four businesses, I would not have had the cashflow to fund the purchase of the property and share portfolios I have today.

    That is the amazing thing about this investment journey. It is different for each one of us, what works for one may not work for another, ... but we all are aiming to get to the top of our little financial mountains in our own way.
     
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  17. Snowball

    Snowball Well-Known Member

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    Passive income alright. It's hard to imagine the enormous difference in hassles, running costs, surprises etc until one has invested in both asset classes for a while.

    The only shock from shares so far is how overwhelmingly enjoyable it is to receive plenty of passive income (plus tax credits) with no hassles, and without every man and his dog taking a piece of it before it gets to you!

    That's not totally true. There are surprises, they're called Special Dividends. As others have noted before, yet to receive a Special Rent payment just because our tenants had a good year lol.
     
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  18. SatayKing

    SatayKing Well-Known Member

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    Only hypothetical but the alternative argument which can be presented is "Where would a person be now financially if those funds, with modest gearing, had been placed in shares rather than property."

    It's one of those round-and-round-we-go arguments which will probably never be resolved to everyone's satisfaction.

    Should I have a coffee at this hour of the morning is the burning question.
     
    Last edited: 8th Jan, 2020
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  19. SatayKing

    SatayKing Well-Known Member

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    Never used MYOB. Software is too complicated for this little brain.

    As to your question it also applies. A matter between me, the accountant and the tax office.

    Suffice to say the ATO published some data on household income by quintiles. I'm not in the first three.

    "Should I have a coffee at this hour of the morning is the burning question."

    Yes to the above.
     
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  20. SatayKing

    SatayKing Well-Known Member

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    Has to get back to location as that is what it really is all about.

    Now I'm glad we never went the IP route. I'm sure many work out well but I have read so many tales of woe and now with further imposts such as land tax and you list the rest I let out a quiet sigh of relief I've never had anything to do with IPs.

    Instant or brewed? Still to decide but self needs coffee.
     
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