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Retirement Stocks 2019

Discussion in 'ASX Stock Chat' started by Muschu, Oct 9, 2019.

  1. Ferret

    Ferret

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    How do people find the account keeping for trusts like APA, SYD, etc?

    I've found keeping track of deferred tax payments to be a pain in the bum, so I generally avoid buying trusts these days.
     
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  2. Belli

    Belli

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    There is probably a similar issue with some ETFs for example VAS where there is a cost-base adjustment. I don't keep paper records so I download the annual tax statement into the folder for the FY income and to the folder for the share holding.

    I did notice when I was helping a friend who has been really, really slack (ATO not happy) and who holds STW the annual statements did at one stage include tax-deferred amounts but these seem to have disappeared once the ETF introduced the cost-base adjustments so I start to wonder if it's now included in that.

    As to the OP's original issue, I did some back of the envelope numbers and my cash holdings in the SMSF is about 2% of total assets after allowing for provision of the account-based pension. Not overly concerned with the "just in case" money approach. Same attitude outside of the SMSF. Keep as much as I need to pay for the overheads for my home/car/insurances for a year or so and what I need to eat and be merry. The rest goes into the share market. I don't do the timing thing. Plonk it in when it's excess for my purposes.
     
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  3. Muschu

    Muschu

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    Lots of good discussion here and it can be worthwhile to reconsider the obvious at times: the place of cash, volatility, the benefits of being conservative and getting the share portfolio / cash balance right.
    We do hold one other LIC that I hadn't mentioned but a very small quantity - FGX. Did have FGG but swapped it out some time back.
    This thread has already caused me to take a deeper look at VAS and VGS [do many hold these?]. I gather both are XD right now and highly priced. VAS has some credits but VGS does not. "Distributions" rather than dividends so I am trying to work out the percentage return.
    Also considering one or two REITs, despite the lack of franking - perhaps CMW in particular.
    But not in any rush as there may be further headwinds ahead.
     
  4. Belli

    Belli

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    Well, the big difference in my view between LICs and ETFs is one is a company and have profit reserves due to the payout ratio whereas ETFs is required to pay all the income out after the manager takes its cut. Has some benefits should things get awkward as the LIC can maintain the dividend from profit reserves. ETF's cannot.

    Don't know zilch about REITs. The LICs and ETFs I hold have got them so I don't have to care about holding them directly.

    For fun go to sharedividends com au enter some ASX codes and look at the trends for dividends. That is what I'm interested in not yield itself which is nothing more than dividend/price and price just goes everywhere.

    I'm a simple person so I try to keep everything that way.

    Probably my last post for a while as I don't read or contribute to forums very much. White noise.
     
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  5. tech/a

    tech/a No Ordinary Duck

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    I could retire as Im old enough but choose not to as I own my own Company and enjoy building it along with my staff.
    There is a great deal of opportunity in our field and I want to be a part of it.

    BUT

    I started seriously building for retirement 30 years ago.

    (1) Property Own 3 freehold collecting rent. (Sold 7).
    1 is paying my super rent 1 is under construction and will be
    part of super and number 3 of 3 is not in super but is part of my earnings.
    (2) Own my business property and paying my super rent.
    (3) I draw a salary and business pays all expenses. (part of my salary).
    (4) Wife also works in the Company and has a salary.
    (5) Run a longer term portfolio with the cash component of super based
    on Algo models developed in conjunction with some others.(Quants).

    (6) Play money is on Short term stock trading not targeted as an income
    but more to keep my hand in Tech Analysis more than anything else.

    So with a number of income streams (I never though about this when I
    decided to work for myself 44 years ago!). Freehold properties and a
    decent portfolio ---- retirement when and if I decide to is comfortable.

    My suggestion to all who can is ---place them selves in a position of multiple
    income streams---- find ways and DO IT!

    You don't have to be like everyone else.
    The earlier you think like this the better.
     
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  6. barney

    barney

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    Howdy Muschu …. Do you pronounce that "Must chew?" 'cause at 74 years old that's not bad advice:p

    I'm not retired as such but only go at 30% of full throttle now days … The mind is willing but the body is beat up.

    Anyway, my ailments aside:couchpotato: …. can I encourage you with regard to the Stocks etc you mentioned in your first post ……. Throw up a few posts with your thoughts on each one on their separate threads. Post on this thread as well, but you might get some more specific banter on an individual Stock thread. At 74 y.o. others will no doubt be interested in your involvement in the market and how its gone over the years .... eg. why you purchased the Stocks you did, why you still hold, decisions you have made along the way .... good or bad! etc etc.

    At 74 and I assume financially comfortable, avoiding risk would be firmly on the top of your list I assume, unless of course you are filthy rich … then I could be in the market for a cheap loan:happy:

    All the best with your Investing.


     
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  7. Muschu

    Muschu

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    Hi Barney
    Muschu is a small island off the Sepik Coast in PNG. I enjoyed visits there when i was living in mainland New Guinea between 1966-72.
     
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  8. aus_trader

    aus_trader

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    I think there must be a typo with regard to ATP, you must be referring to APT.
     
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  9. Value Collector

    Value Collector Have courage, and be kind.

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    I just hand the end of year summary the accountant and he does it.
     
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  10. Country Lad

    Country Lad Off into the sunset

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    Like you VC, I find it all very easy, I just hand it over to my wife. That's why I married an accountant.
     
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  11. Knobby22

    Knobby22 Mmmmmm 2nd breakfast

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    That's why I married a good cook.
     
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  12. Country Lad

    Country Lad Off into the sunset

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    To cook the books? :laugh:
     
  13. barney

    barney

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    Thanks Muschu.

    So between your early and mid 20 years of age! …

    You frequented a small island that basically few here knew even existed (me included).

    At 74 yo. I'd suggest you may have more than just the odd story to tell about your life, both trading and otherwise:D

    Please feel free to elaborate! …. ASF may well be the richer for your input;)
     
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  14. barney

    barney

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    Yeah … I do similar …

    I spend 8+ hours doing the summary ..

    I hand it to my Accountant ...

    He takes about 1.5 hours filling in the details ...

    And Charges me $500+ dollars to do soo_O

    For some reason I'm happy with that:p:)
     
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  15. Ferret

    Ferret

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    Sounds like the way to do it.

    My father held APA for many years and participated in the dividend reinvestment scheme. He ended up with dozens of parcels and each had to have it's cost base reduced each year for the deferred tax components of distributions.

    Of course the annual statement only gave the deferred tax for the total holding. It was an absolute nightmare!
     
  16. Value Collector

    Value Collector Have courage, and be kind.

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    Hahaha, yes I do the same, I put all the pieces of the puzzle in order, and he puts the finishing touches on it.

    Although he does have a few good ideas every now and then.
     
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  17. Value Collector

    Value Collector Have courage, and be kind.

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    Yeah, but there is a benefit to it, it reduces your over all tax burden.

    You could just ignore the deferred taxes side of things and just pay the full taxes each year as if it were a regular share.

    Ofcourse you would end up paying more tax than you have to, but it would make it simpler and would just make it on par with normal shares.
     
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  18. Belli

    Belli

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    Back just to say I found a possible solution as a result of going through all the records my had. Entered all the STW buys, etc for 12 years into Sharesight. I then saw it also showed cost-base adjustments including any tax-deferred amounts for each distribution. Maybe this could work for other Trusts.

    Real pain entering all the historical info though.

    And the ATO now collects the data and I understand personal tax returns largely are auto-filled including LIC Capital Gain Discount so I'm guessing that may also included any tax-deferred amounts.
     
    Last edited: Oct 13, 2019
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  19. Ferret

    Ferret

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    Interesting, Belli. I hadn't heard of Sharesight. I might try out their free version.

    I noticed that this year the ATO had auto filled shares I'd sold in the Capital Gains section. It didn't know the details of when they were bought and the cost base though. I will still need to put this info in manually.

    Maybe they will add this in the future. It would be fairly simple if you sold an entire holding that you had bought in one purchase. Some manual input would be required if you sold part of a holding that had been built up through multiple purchases. You need to be able to nominate which shares you have sold to minimise the CGT.
     
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  20. Belli

    Belli

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    Yeah. It's an alert. I understand where people have sold their PPOR it can appear as CG alert via the ATO data collection arrangements just in case they have used it to produce accessible income.

    The ATO has also issued a S264 notice to Airbnb to supply information covering the last few FYs I believe.
     
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