LIC & LIT Listed Investment Companies (LICs) 2021

Crikey, where do you find the time.

 

Yeah. It can be like that.

At one stage knowing funds would hit the accounts, I did the buys the day before. Now, with the DRP arrangements I have put in place, I don't even do that. Essentially I suppose I have stopped investing or at least actively so. Even disposed of the spreadsheet which had asset allocations.

It did require a mental adjustment but I have been gradually moving in that direction over the last few years which I suspect some have observed or have gathered from some of my facetious posts.

It's being in a peaceful space such as where @Isla_Nublar seems to be heading which is good to see.

 

Never fear. It is probably on the employer's time so there is no waste - fortunately.

 

Don't get me wrong, I still like investing and finance, it's just now I'm a lazy ETF investor in broad based indices...very little that can be thought about really. The only thing I do is at the beginning of each financial year, I estimate what my dividends/distributions will be for the next financial year (based on last years dividends/distributions) and my current holdings. Of course, it always ends up different as I buy more shares each month and DRP, but that's the extent of my planning.

 

Yep.

 

Hi guys,

I have topped up both of my property loans so now have a decent amount to invest during market crashes. I'm thinking of writing down my own investment statement on how to invest during strong corrections so I don't end up spending all my money during smaller corrections.

Would you be able to share what you are planning to do in these situations? I was thinking something like this:
10% correction - invest 10% of available money
20% correction (from peak) - invest 20%
30% correction (from peak) - invest 40%
40% correction (from peak) - invest 30%

 

None of the above.

 

Priority 1 : keep protein intake high.

 

7 High Protein Coffee Shakes That Will Make Any Morning Better

 

Nice find! Beats Whey protein concentrate and chicken breast blended together thats for sure

 

Jeez, I step out for a week or so and when I come back several entire damn pages have occurred that I have to read to see if there's anything useful in them.

Not really, as it turns out, but this investing stuff is getting hard. Too much reading...

Actually I did have something to report. I have a self-invest super account which is all in LICs/ETFs and because like most of these things it has a minimum cash balance requirement I have to have a look occasionally to ensure I don't go under. I knew I was due a few bucks from the small parcel of WAM I have inside it - given their strange dividend timing policy - and I knew that they paid their dividend (as I also have a small parcel outside super as well) on 29 October as I can see it on my bank statement. A week later... nada in my super transaction list but I can see they're carrying an accrual. And my balance is getting close to the minimum otherwise I wouldn't care so much - so I enquire via phone. Man listens to story, then puts me on hold while he's off talking to the equities team about problem. He comes back quite some time later - turns out that (and I guess had I thought about it, I'd realise this) they get the dividends in one chunk from WAM (or anyone else) for all the entire fund's holdings - so mine and the other guy who's bought some are all together - and they then have to divvy (cough ) them up into the individual accounts and that takes about a week...

So I learnt something. And it took a day or two over the week, but when it did appear it had been backdated to 29 October. Nice to know.

 

Poultry index tracker

 

Hello wise ones, just wondering if shares are a good hedge against inflation? From an inflation point of view does it make a difference if they are dividend paying Aussie shares or US shares that do not pay divies?

 

Yes. No. Maybe.

 

Based on current inflation of 3% majority LIC including AFI which are traded for premium with below 3% dividend are useless IMO.

For US stocks just make sure you reduce dividend by 15% which is the tax you pay on dividend and zero franking would make most us stocks useless as well IMO but if you look for high capital growth ETF then probably big risk you need to consider when the bubble burst what will you do or what impact it has on investment as most of them are traded to High PE or P/B ratio .. IMO.

With significant capital growth to many bluechip stocks it is hard to find stock with decent dividend yield above 6% to counter inflation.. unfortunately.

 

Yes. Shares, real property, sensible debt, business income or a wage are all good hedges against inflation.

As far as shares go, here's an extract from the RBA paper on the Australian share market over the long term.

The Australian Equity Market over the Past Century | Bulletin – June Quarter 2019
Total return and the equity risk premium
Using the updated dividends data, the new historical series (extended with available data for more recent time periods) imply that the total nominal return on equities (i.e. the sum of capital gains and dividends) has been around 10 per cent per year over the past 100 years (based on a geometric average which allows for compounding over time) (Table 1). In real terms – i.e. after accounting for inflation – the average annual return was about 6 per cent. There have not been material differences in returns across sectors over this time, although of course there have been periods in which sectors have performed differently. Over the same period, the total nominal return on long-term government bonds has been around 6 per cent, implying an average equity risk premium (excess return of equities over safe assets) of around 4 per cent.

 

So consistency isn't a issue in that case.