Nearly ready....but still lots of questions.

This is not rocket science....some things to think about. Why try to do a combination of strategies to go passive:

1. If you are scared of putting large sums into ETFs...drip fee maybe 120k per year. That way if a major crash happened...you will manage the downside risk

2. Have plan of selling places 1-2 per year to manage the CF..use some of that as income

3. If you are born before 1964 you access super before 60...it drops one year up to 1959 I believe. Super is one of the best passive strategies..a lot of people ignore that it their peril.

4. For the shares perhaps a simple trust/company might work to distribute between you and hubby.

I see a lot of people hold a lot of property and structure poorly and loose a lot of money in unnecessary tax.

 

Yep, I know. I'm over the fear now......it's going to happen this time. Yep, I've talked about it before but got cold feet, but by the same token I've never spent this much time on it. I'm still reading, reading, reading & Hubby's not going to talk me out of it.

That's what I was thinking, maybe $5-$10k per month. Slowly, slowly, but it gives me time to learn & get more comfortable with it, plus some exposure should a correction happen, so I'm ready to put extra in.

You may recall I've already done that. Others are earmarked to go......but not for a few years yet.

I have nothing, zip, zero in Super. Sorry, I lie, I think I've got a whole $32.......NO, not $32k, a mere $32.

Been down that path....the poor structure & loosing a lot of money path. That was not fun.

 

I wonder... Can putting money in super work for you now, or is it too late?

 

Ok not advice...but here is somethung to think about:

1. Depending on what age you are...you can move about 300k into super and when you do any returns is CGT free. If ya do it for you and hubby that is say 600k in super...with the 4% rule that would be 24k....tax free assuming they are in growth assets like ETFs

2. Keep the structure simple use your existing structure....

 

I think it's pretty much too late for me now. Funds I HAVE, have to work for me NOW, not later when I'm allowed access to Super.

Good-oh! I want to make it a decent amount......but not TOO much, if you know what I mean.

That's where my head is at, at the moment as well. I figure just start. Get in there & DO something. I can always add stuff to the Trust later.

[QUOTEYou need to figure out with an accountant things such as whether you can offset CGT from property sales with any losses from disposal of ASX listed thingies, impact and carrying over of any tax benefits in distributions etc.

The Y-man [/QUOTE]I'm all too aware of the carrying over of losses in Trusts.....it took me years to finally get back all the money that was owed to me in there.

 

It's not so easy Sash. I COULD move $300k into Super, but the cost to me is the INCOME that $300k returns me NOW. Do it for $600k would mean us loosing $24k of income NOW! I can't do that! It is what it is, & I'll just have to be happy with what I get without Super. Hubby has about $150k in Super, but I've got nothing at all.

 

I would suggest you get some proper financial advice. There is so much you don't know you don't know.

 

I'm in a similar boat thinking about whether to sell 50% or more of my property portfolio and put them into LICs. You mentioned only investing small amounts at first but for this strategy to work effectively you need to invest at least $600k-2m. To me that is a big chunk of money at the mercy of the stock market which I'd feel safer if it was invested in property..

 

You are right, it is a big chunk of money, but I'm going to take this slowly. Little bite size pieces, so that I can get a feel for what I'm doing as well as hopefully get a lot more comfortable as I go.

 

It's more than simply investing the money, it also includes structuring things to minimise the amount of tax paid.

A couple of thousand spent with a good accountant will likely pay you back tenfold at least.

 

Sheez $32...it will cost more in fees close off the account.

As for diversfying from property this is what is going to catch a few investors out if they plan to just retire on income from property whether in OZ or USA.

Property income is highly variable...as you can have have large maintenance bills, vacancies, etc.

That is why you need a more stable income to balance it via ETF/Shares, Cash, and Fixed interest. I am not sell all the real estate but make sure you go with eye wide open.

 

I've tried many times. It had a couple of k in it at first....but that all went in fees.

Hence why I feel it's important to diversify.
Oh, & I'm not getting rid of all the real estate either.