LIC & LIT Listed Investment Companies (LICs) in 2017

@unwillingwillis -are you investing in LICs under 2 seprate accounrs-1 under you and another under Mrs? To get this $37K divis each?

 

For comparisons I gross up. For retirement I think of franking as part of the safety net and a cushion for unfranked investments like VGS. At "retirement" I aim to be living off sub 80% dividends and reinvesting the 20% (which should grow each year), with the deliberately generous maths of dropping franking credits and and few other 1s here and there our safety margin should be fairly substantial. Then again there is the argument for going to the razor and pulling the plug ASAP, less generous maths will be used if work ends up been a complete pain each day.
Everything I actually do is very simple. If I ever decide to follow up on running a concentrated portfolio it will be quarantined with a separate bank and broker.

 

My tax circumstances are quite unique and almost certainly won’t apply to you. There are a number of different ways to structure your assets to maximise your tax benefits. I’m not licenced or qualified to give advice on that I’m afraid. There are other treads that cover that topic, a simple search will bring them up.

 

Choosing LICs is an individual decision, but the factors would be quality, price at time of purchase, fees and asset allocation. Assuming you have chosen your quality low fee LICs, then you only need to worry about when and what to buy. Read about asset allocation but in a nutshell it means reducing risk by diversification across asset classes and markets (E.g Australia vs International).


{Note - thread continues here: Listed Investment Companies (LICs) in 2018}