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Transferring portfolio (1 Viewer)

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My husband and I are 12 months into our investing journey. We hold two ETF's with a full-service broker and DCA them both.

We feel much more confident now that we could manage our portfolio ourselves and are considering transferring to an online broker due to the high fees of our current broker.

Has anyone done this and can share their experience?
Additionally, they are in my husband's name who will likely always be the higher income earner. Is there value in activating a CGT event now to put them into my name? Considering we will likely hold for 10-20 years.
 
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Keep for at least 12 months to claim the 50% CG tax discount. What to do,then?...dunno.
Dumping the full-service broker was the 2nd best move,you've made so far.Number one was finding this wonderful forum.They are a friendly lot and full of helpful info,so just ask.
 
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Dona Ferentes

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My understanding is that transferring them in any way will trigger a CGT event. So it may be best to wait as dyna has said.
Each transaction, each purchase will attract CG consideration when sold/ transferred to new owner. Assuming DCA stands for Dollar Cost Averaging, (and not having any idea how long you had planned to continue doing this), then
1). there has been more than one CGT event
2). it could be feasible to start a new account in the lower tax bracket person immediately, and
3). transfer the earlier holdings after the 12 month period has passed.
4). Keep records.
 
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Another option and this is not advice just an opinion, also it isn't for everyone and it does depend on your personal circumstances, objectives etc.
But it may be possible to sell them into your super, pay the CGT and claim for the contribution.
Definitely seek professional financial advice, if you do this, but if you are thinking of a long term financial plan for retirement it may be an option.
If you are investing to purchase a house, or for discretionary spending, it wouldn't be a suitable plan.
So as I said work out what you objectives are, and then look at the best options for you circumstances.
Just my opinion and in way intended to be advice.
As Dona said, any change of ownership of shares, is a capital gain event.
 
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Another option and this is not advice just an opinion, transfer from full-service broker to online broker the existing shares (in husbands name) and open another in your name to continue investing. No CGT event.

Personally, wife and I have a single joint account and makes it easy when the inevitable happens.
 

Gunnerguy

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I have bought shares over 25 years or so. Both I and Ms. Gunnerguy have individual trading accounts. We both own approximately the same total value of shares (I do all the trading fir both accounts) and depending on who is employed/unemployed (adjusted for salary sacrificing also) and the lowest MTR (or none) I/she sells a portion when/if we need funds.
Selling depends on funds required and ‘feeling’ on the future of that share/ETF.
We can thus use both our tax thresholds across our investments plus the franking credits on the dividends to manage our tax.
Thankfully we have been happily married 30 years, and plan to remain so.
It’s worked well for us over the years.
I suggest you look at the possible income/employment and superannuation/salary sacrifice changes you may implement/experience over the next 10-20 years.
Spreading asset ownership for certain assets in individual names has provided us with a positive tax management strategy.
Not financial advice. Speak to an FA. DYOR.
Gunnerguy
 
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I have bought shares over 25 years or so. Both I and Ms. Gunnerguy have individual trading accounts. We both own approximately the same total value of shares (I do all the trading fir both accounts) and depending on who is employed/unemployed (adjusted for salary sacrificing also) and the lowest MTR (or none) I/she sells a portion when/if we need funds.
Selling depends on funds required and ‘feeling’ on the future of that share/ETF.
We can thus use both our tax thresholds across our investments plus the franking credits on the dividends to manage our tax.
Thankfully we have been happily married 30 years, and plan to remain so.
It’s worked well for us over the years.
I suggest you look at the possible income/employment and superannuation/salary sacrifice changes you may implement/experience over the next 10-20 years.
Spreading asset ownership for certain assets in individual names has provided us with a positive tax management strategy.
Not financial advice. Speak to an FA. DYOR.
Gunnerguy
Absolutely Gunnerguy, the wife and I have done exactly the same and now we are in retirement the super component, mine is in pension phase the wife's is in accumulation.
We've been happily married for 45 years and plan to remain so.
It has worked for us also. :xyxthumbs
 
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Each transaction, each purchase will attract CG consideration when sold/ transferred to new owner. Assuming DCA stands for Dollar Cost Averaging, (and not having any idea how long you had planned to continue doing this), then
1). there has been more than one CGT event
2). it could be feasible to start a new account in the lower tax bracket person immediately, and
3). transfer the earlier holdings after the 12 month period has passed.
4). Keep records.
Instead of transferring, why not sell and buy?: as a system guy doing probably 5 or 6 transactions per ooen day, i would not bother doing a paper transfer,not when buying selling cost you $10 for up to $10k and even less in percentage above
And yes if you need to avoid capital gain tax hit, wait for 12m unless you can offset losses etc.
Anyway welcome
 

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