LIC & LIT Whitefield Limited SPP

Discussion in 'Shares & Funds' started by SatayKing, 7th Nov, 2018.

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  1. SchoolTeacherJohn

    SchoolTeacherJohn New Member

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    Whitefield Taxation request.

    I am starting out investing so be gentle.

    I think Whitefield might be ok for me as a starting out investor as there seem to be a lot of SPP's with this company.

    If borrow to invest and use the Whitefield Bonus Share Plan for all of my shares can I claim the interest on the loan against my tax even though no income will be had as there will be Bonus Shares issued instead of a dividend?
     
  2. SatayKing

    SatayKing Well-Known Member

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    Hi @SchoolTeacherJohn

    Bonus Share Plan

    See attached, paragraph 3 refers. However, as always where necessary obtain professional tax advice.
     
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  3. SchoolTeacherJohn

    SchoolTeacherJohn New Member

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    Maybe I could leave 10% of the shares as receiving a dividend and put 90% of the shares as Bonus Share Plan. That way I could still negative gear the loan.

    Does this sound ok?
     
  4. Snowball

    Snowball Well-Known Member

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    My guess would be that since only 10% is earning an income, only 10% of the interest would be deductible.

    Not much free money around I’m afraid ;)
     
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  5. Greedo

    Greedo Well-Known Member

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  6. Coconutwheels

    Coconutwheels Well-Known Member

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  7. Nodrog

    Nodrog Well-Known Member

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  8. Snowball

    Snowball Well-Known Member

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    Forecast dividend is 19.75 cents. So that’s 4.66% on the price of $4.24. Or 6.66% gross.
     
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  9. pippen

    pippen Well-Known Member

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    Did you pick up any @Snowball or still gone boglehead index mode :p
     
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  10. Snowball

    Snowball Well-Known Member

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    Haha nah I’m not a holder of that one mate. More likely to trim number of holdings than add more!
     
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  11. pippen

    pippen Well-Known Member

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    Same same! I mean really how many lics does one really need! More lics etfs and individual holdings equals more decisions and then analysis paralysis and decision making fatigue getting in the way of actually living life due to obsession with the green and red ticker symbols on commsec whilst that precious commodity of them all......time slowly but surely passes by!
     
  12. SatayKing

    SatayKing Well-Known Member

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    Full amount. Not selling but, after WHFPB conversion, wont be adding further*.



    *Unless I change my mind.
     
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  13. Snowball

    Snowball Well-Known Member

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    Well said mate.

    I dunno why we do it to be honest. We get too enthusiastic and treat it like bloody Pokemon, gotta catch 'em all! Haha.

    Leaving entertainment/enjoyment value aside for a minute. I'm now starting to really weigh up expected return vs time spent earning that return.

    For people trying to beat the market: What's the point spending all your bloody time trying to get 8% return, when you can get 7% with basically zero effort? That's gotta be a pretty crap return on time invested.

    And on hoarding LICs: What's the point spending twice the amount of time on it when the return is probably going to be the same by just holding a few?

    It might be a bit early to call it, but maybe I'm reaching the enlightenment/simplicity stage :D
     
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  14. SatayKing

    SatayKing Well-Known Member

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    When you've finally decided on what is best for your circumstances and yours alone, stay with it. Then you'll be in a position to swat away irritations. Takes time to achieve. Some get there quicker than others. Nor is there only one way to achieve it.

    Probably I'm still a work in progress having disposed of BKI, DJW and all direct share holdings with funds re-deployed.

    Frankly, my present lack of interest in the share market is a little surprising to me.
     
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  15. Parkzilla

    Parkzilla Well-Known Member

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    Just waiting for the right time to offload BKI then will be down to A200 and MLT, sorted!
     
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  16. jimmy

    jimmy Well-Known Member

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    I’m noticing a trend towards simplicity on PC lately (probably for the better), but it will be interesting if it eventually swings back the other way and people start wanting to spread their risk across LIC’s again to limit management risk...
    As some of the wise heads on this forum say ‘run your own race’. Take notice and absorb as much quality info as you can but don’t always follow what others are doing.
     
    Last edited: 6th Dec, 2018
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  17. Nodrog

    Nodrog Well-Known Member

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    Well said. Also things happen in life which can change one’s view of things. Events over the last 12 months have in large part been responsible for our change. Just because some here are simplifying to a few funds doesn’t mean it’s right for everyone.

    Particularly in the world of LICs with their unique attribute of being able to trade at a discount / premium there’s potentially an opportunity for outperformance by owning a number of them and knowing how to take advantage of same. In our case with us being happy with our level of wealth and having different priorities now I just don’t have the need / desire / enthusiasm to pursue these things like in the past. So yes take on board what others say but as mentioned above each investor must run their own race.
     
  18. asw1

    asw1 Well-Known Member

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    That’s right! Simplicity for some, but others with lots of experience embrace diversity and complexity.

    Deep inside Chris Cuffe’s long-term portfolio - Cuffelinks
     
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  19. Islay

    Islay Well-Known Member

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    Similar asset allocations and percentages to mine. Although the underlying assets vary it is nice to see someone else is doing something similar. I am a Chris Cuffe fan too!
     
  20. Nodrog

    Nodrog Well-Known Member

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