Peter Thornhill

Please kindly post your thoughts on the course here if you get the chance.

He's a wonderful person and his knowledge priceless. His stage persona is different to that of speaking to him privately. He's a softly spoken, patient, helpful and generous natured person. I couldn't speak more highly of anyone.

Although I'm sure if you told him the only way to make money is to invest in property he may not be quite as softly spoken.

Cheers

 

Just ordered his book, cant wait to read it

 

Dividend income stream increased by 6.8% CAGR over 35 years. Not a bad way to live out ones retirement.

 

A look at the US experience, from Dividend Growth Was Steady in Q3 Crossing Wall Street



Always interesting to see the smoothing effects of dividends vs stock prices.

 

Great post.

Yes if one can just condition themselves to focus on the income component of stocks vs price volatility he / she will find the ride not only smoother but a lot less stressful.

 

Believe it or not rather than look at premium/discounts of LIC before buying I rather prefer to look at their gross yields. Once its around or greater than 6.5% I get very interested. Currently, only BKI fits that criteria out of the ones I like. Others being MLT, ARG and AFI.

Cheers,
Oracle.

 

Yep, a low yield relative to average can be an indication of an overheated market or the LIC at a premium etc.

I completely lose interest in the low fee, buy and hold oriented LICs if the yield drops below 4%. The higher it's above this level the better.

 

Nice bit of reading especially chapter 2 hope ppl enjoy it!

 

Finished the book yesterday.
Great read,
Highly encouraging my wife to read it now. She is still firmly of the belief that shares are risky and property is all roses

 

Thank's @pippen,

I purchased this book over a year ago out of curiosity. It's was only $4.99 US in Kindle format. I thought I'd mentioned it before somewhere here but might be wrong.

It's still available on Amazon for $5.70:

Super Smart Money: A guide to the most efficient retirement income streams for Australians eBook: Michael Holmes: Amazon.com.au: Kindle Store

From memory It's a good read pretty much based on the Thornhill approach but more focused on implementation than theory / principles which is mostly the case with "Motivated Money". There's a minor amount of promotion of the author as a Financial Planner, the Superannuation examples won't be accurate with the proposed changes and direct shares rather than LICs are more the focus.

It's a reasonably comprehensive read covering Thornhill's strategy, investment structures, share selection guidelines, recommended shares (at the time of writing 2014) and gives around 5 real life case studies from memory. SMSFs and Super strategies in general are discussed quite a bit. A number of the share recommendations were sound but the inclusion of BHP, RIO and WPL wouldn't have impressed Thornhill.

As posted by @pippen the following sample chapters detail the Author's meeting with Thornhill which lead to him adopting the strategy for his clients:

https://www.propertychat.com.au/community/attachments/ssm_sample_chapters-pdf.10660/

At $5.70 and available in an instant as an electronic copy from Amazon it's hardly going to break the bank for those interested in a worthwhile read on dividend focused investing in Australia.

 

Looking to learn more about family discretionary trusts to hold LICs/ETFs/property to fund early retirement. Will this book be of use to me?

 

Probably not, it's more of an overview of the structures.

The following publication on Trusts was popular a few years ago (Dale gave me a copy of it when it was first written) but I'm not sure he is updating it anymore? It goes into some of the more advanced trust strategies:

Trust Magic 2nd ed

The following appears to be a good free introductory publication on Trusts:

https://www.wealthsafe.com.au/wp-content/uploads/2015/08/The-Intelligent-Trust-Guide-20141.pdf

But this forum including a lot of stuff @Terry_w has posted here should give one heaps of up-to-date information.

Our Discretionary Trust is kept very simple nowadays with it's only assets being shares, LICs and a little cash. The Family Trust in combination with our SMSF works well. Of course shares and IPs can work well together in a trust but the risk of litigation against IPs (albeit low) can put your shares at risk. I found when it comes to structuring best to take a conservative approach. Keep it as simple as possible relative to your circumstances.

But this is best discussed elsewhere as I'm taking this thread off topic.

 

I've written a detailed post on this topic on the investchat forum - somewhere.

 

It's somewhere amongst this lot:
https://www.investchat.com.au/community/search/8669/

Have fun.

 

Here it is
High income and investment structures

 

Thanks @Terry_w and @austing

I've already got some LICs/ETFs in personal names but now seriously considering setting up a discretionary trust now that PPOR loan is almost paid off and I have some spare equity to play with.

Initially I want to use equity and lend it to the trust to purchase my first batch of LICs/ETFs within the trust. I just need to get my head around lending from individual to the trust and the tax effects.

I posted my question here:
Tax Tip 89: Borrowing and onlending Interest Free to a Discretionary Trust

Later on once the PPOR loan is paid off I plan to regularly 'gift' to the trust to purchase additional LICs/ETFs.

 

Just consider the effects of gifting on your estate planning strategy as well.

 

Yep. agree a lot of people have this view......unfortunately it slows down their wealth accumulation plan. Can only be overcome with good education and directly experiencing what a well managed portfolio will deliver given enough time.

 

Anybody have an more links/articles on peter thornhills approach during accumulation phase! I have read motivated money and seen a few links and articles here and there jus wondering if there is a hidden library out there with more knowledgeable info from this genius!

Many thanks!

 

What are you after? It is a pretty consistent message that Peter gives - squirrel your money into industrial stocks over the long term - the use of some old low cost LICs are mentioned as a way to do this (such as WHF from one video). Debt recycling is something else in Motivated Money that is important to understand.

I don't see too much else to read about really, Peter keeps it pretty simple. I just follow my LICs and buy the weakest as money becomes available.