Realigning my share portfolio???

Discussion in 'Share Investing Strategies, Theories & Education' started by tppha7, 28th Jul, 2021.

Join Australia's most dynamic and respected property investment community
  1. tppha7

    tppha7 Active Member

    Joined:
    24th Jul, 2021
    Posts:
    28
    Location:
    somewhere
    I have about $130k in my portfolio with about 60% in AFI, VAS, VGAD, ANZ and TWE ( each about 10% or more), 10% in cash, and 30% mixed bag of 10 company shares such as CKF,CLH,QBE, Z1P, etc.

    I wonder if I should sell off the 30% in one go and reinvest in the EFT/LIC that I have, just leave them there or sell the making loss ones to reduce my tax, noting I have these for more than 12 months.

    My overall strategy is a little-stressed, long term portfolio which is made up of EFTs and LICs.
     
  2. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    10,260
    Location:
    Australia
    What income are you going to offset these losses against?
     
  3. Mark F

    Mark F Well-Known Member

    Joined:
    29th Jan, 2020
    Posts:
    1,029
    Location:
    Canberra
    Losses from the sale of shares are not offset against income, they are set off against capital gains - unless you qualify as a share trader but doubt you do.
     
  4. tppha7

    tppha7 Active Member

    Joined:
    24th Jul, 2021
    Posts:
    28
    Location:
    somewhere
    My capital gain from non-share investments, though this does not happen every year.
    If I sell them all in one go, I'd make even.
     
  5. ASXGJ1

    ASXGJ1 Well-Known Member

    Joined:
    28th Jul, 2021
    Posts:
    675
    Location:
    NSW

    I am in same boat as you. I have 17 small and midcap including big 3 bank. I am planning to keep all 3 big bank (ANZ, NAB, WBC) and BEN and sell all the other to reinvest in more Bank (ANZ, NAB, WBC) and VDGR and VDHG. I don't want to invest in any small caps anymore and idea is to put 80% of what i recover by sell plus current saving into 4 banks and 20% in two Vanguard. Then every year bank dividend and ETF dividend will be reinvested in ETF only... in a hope to continue accumulating ETF until I reach 50% ETF & Banks value (original investment sum of bank will be matched with ETF).

    Then I will start using dividend and retire .. ! (Planning to accumulate 1000 banks shares in total) plus equal value of ETF before retirement in long-term ... !

    I am only selling stocks that are currently giving capital gain but have not paid dividend in last two years. I am not selling the loss making stocks until June 2022 as I have hope that those not performing at the moment may turn-around in next 2 to 3 years as no point selling in loss unless you urgently need money in my theory.
     
  6. Zenith Chaos

    Zenith Chaos Well-Known Member

    Joined:
    10th Jul, 2015
    Posts:
    1,673
    Location:
    Sydney
    I also own individual shares I'd like to swap out for index ETFs. The problem is an inability to see into the future. At this stage, I'm selling when I think they reach or exceed fair value in the market's eyes. This may in fact be suboptimal, so if any wiser posters out there have a view that would be great.
     
    SatayKing likes this.
  7. SatayKing

    SatayKing Well-Known Member

    Joined:
    20th Sep, 2017
    Posts:
    10,729
    Location:
    Extended Sabatical
    I'm certainly not wise but I do have a view. You may not like it though nor will it necessarily help you @Zenith Chaos.

    Many posters on this forum have said it is not possible to time the markets. That could equally apply to individual share holdings as they are part of the market. So....

    .........make the decision, don't look back and have no regrets.
     
    number 5, Islay, Tyla and 4 others like this.
  8. Zenith Chaos

    Zenith Chaos Well-Known Member

    Joined:
    10th Jul, 2015
    Posts:
    1,673
    Location:
    Sydney
    You are wise Monsieur King Prawn.
     
    SatayKing likes this.
  9. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    11,379
    Location:
    Buderim
    If this is not a good time to sell I don't know what is unless of course you're into tax loss harvesting:). Get it done and move on, the peace of mind alone is worth it!
     
    monk, The Falcon, number 5 and 6 others like this.
  10. ASXGJ1

    ASXGJ1 Well-Known Member

    Joined:
    28th Jul, 2021
    Posts:
    675
    Location:
    NSW
    I read your past post and many of them are informative and seems like coming from your own experience.

    can you advise on how to move on when you are in almost 50% loss and still believe the product will bounce back? (talking about biotechnology sector on ASX)?
     
    Zenith Chaos likes this.
  11. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    11,379
    Location:
    Buderim
    I'm not liscenced to advise but will a 50% loss turn into 100% loss or will it recover? Who knows?
    Only you can make the decision.

    Losses in themselves are valuable. Sell the losers, reinvest in something guaranteed of long term success (eg total sharemarket index) then when the capital is needed to fund retirement use those booked losses to eliminate tax!
     
    Islay, ASXGJ1, SatayKing and 2 others like this.
  12. SatayKing

    SatayKing Well-Known Member

    Joined:
    20th Sep, 2017
    Posts:
    10,729
    Location:
    Extended Sabatical
    Nah, after a long time I have become aware fighting yourself is pointless and achieves bugger all.

    Put all together: peace of mind as @Nodrog has posted, not happy to hold if markets are closed for 10 years or more, investing in the truer sense is not supposed to be hard, it is a part of our lives not our life, blah, blah, blah and other bon mots. My investing is mostly reading the reports, dividend dates and that's probably too much involvement.

    Posts by others on this forum are way better. Some good tips on chicken breasts, home brew and coffee on special. Not bad at all.
     
    sharon, Zenith Chaos, Anne11 and 3 others like this.
  13. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    11,379
    Location:
    Buderim
    Have given that a miss also. Some cash on hand means dividend dates are meaningless other than for tax purposes whereby email notices are all that's needed. Yes I'm a party pooper I know.
     
    Last edited: 28th Jul, 2021
    Zenith Chaos, ChrisP73 and Anne11 like this.
  14. ASXGJ1

    ASXGJ1 Well-Known Member

    Joined:
    28th Jul, 2021
    Posts:
    675
    Location:
    NSW
    I have been looking good low cost etf but not something like VAS which charges low fees but unit price is close to $100... Any suggestions?

    I have shortlisted VDHG, VDGR, AUI, UDI. Not keen for 100 as prefer to take franking credit benifits... Don't like ARG or AFI which probably provide around 3% to 4% so not high growth like Vanguard... Any suggestions for another fund?
     
  15. SatayKing

    SatayKing Well-Known Member

    Joined:
    20th Sep, 2017
    Posts:
    10,729
    Location:
    Extended Sabatical
    PS: My "required" reading has been reduced by one today so I'm getting there. :D
     
    number 5 and Nodrog like this.
  16. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    11,379
    Location:
    Buderim
    Unit prices are irrelevant. Understand what you're investing in first and foremost.

    Franking credits are great but we nearly lost many of their benefits last election so don't bank on tax outcomes.

    Maybe not the most tax efficient depending on structure but VDHG or unlisted version of same given psychological issues might be worth further investigation. Use the forum Search function to see valuable previous decussion.

    What you will stick to long term is far more important than optimal tax wise etc.
     
    Zenith Chaos, The Falcon and Anne11 like this.
  17. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    11,379
    Location:
    Buderim
    You talking to yourself again, that's a concern:D.
     
    Never giveup likes this.
  18. ASXGJ1

    ASXGJ1 Well-Known Member

    Joined:
    28th Jul, 2021
    Posts:
    675
    Location:
    NSW
    Didn't realise there were changes to franking credit in last election on the contrary Labor lost election due to franking credit and negative gearing proposal.

    Long-term in my book means investing in company or investment instruments that stays in business and provides capital growth or dividend though out. All 4 major bank and ETF falls into this category so I won't discount franking credit for capital growth like VAS or VGS.
     
  19. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    11,379
    Location:
    Buderim
    How true. Investing should be boring. Boring means less chance of sabotaging long term term success. So yes focus on chicken breasts, home brew, coffee etc and automate your investing to look after itself.
     
    ChrisP73 and pippen like this.
  20. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    11,379
    Location:
    Buderim
    I said nearly lost ... . Franking credits didn't exist earlier on so don 't assume they will always exist in their current form.
     
    ChrisP73 and Islay like this.

Build Passive Income WITHOUT Dropping $15K On Buyers Agents Each Time! Helping People Achieve PASSIVE INCOME Using Our Unique Data-Driven System, So You Can Confidently Buy Top 5% Growth & Cashflow Property, Anywhere In Australia