FFA, I think you’re underestimating how ‘material’ a 1% difference in returns actually is, when compounded over a reasonable time frame.
$1,000 @ 6.0% for 10yrs = $1,790
$1,000 @ 7.0% for 10yrs = $1,967 (22% more gain)
It’s even more stark with longer periods…
$1,000 @ 6.0% for 25yrs = $4,291
$1,000 @ 7.0% for 25yrs = $5,427 (34% more gain)
In saying all that however, I too believe that 10% premium is hefty and most likely temporary, so now is not a good time to be buying those particular LICs. Although, to me, a slight premium is worth stumping up, which you yourself also say in your last post - ‘ETFs if the LICs are at a significant premium’.
This becomes a game of what’s your number? Mine is 5%, but I wince when I go that high.