Author Topic: Australian Investing Thread  (Read 1236480 times)

Rob_S

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Re: Australian Investing Thread
« Reply #4100 on: July 03, 2018, 04:02:58 AM »
Estimated Vanuguard Australian Shares (VAS) distribution payable on July 17 is $1.02 per unit.

Chomp chomp, reinvested will be another 33 shares for me :) And with a big fat tax return and (hopefully a) work bonus too I will be loading up on some more this quarter.

@Rob_S - the VHY one is $1.79! Quite the very high yield it is turning out to be.

Hi Marty! I was pleasantly surprised by the divie. I recently posted my overall thoughts on VHY in my MMM journal. It has strengths as well as weaknesses that aren't obvious at first glance or at least weren't obvious when I came up with the strategy a few years ago. VHY has been getting a lot of flack lately in investment circles and I reckon its over investment in Telstra is a yield trap similar to BHP and RIO from a few years back. Its lack of capital growth was also getting me down. However the sweet sweet dividends make up for that every time they roll around.

Grogounet

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Re: Australian Investing Thread
« Reply #4101 on: July 03, 2018, 05:48:49 AM »
i trade mostly directly in the us... voo vea etc etc.. can t figure out an easy way on the ib platform to know my returns

BattlaP

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Re: Australian Investing Thread
« Reply #4102 on: July 03, 2018, 09:59:30 PM »
Another gigantic quarterly dividend for our Vanguard funds.. like 4.5% on the High Growth LifeStrategy..

Impossible to plan for that kind of shit, particularly when estimate annual income for FTB, childcare etc. I don't feel like we receive any adequate notice, maybe I'm just not paying enough attention to the right emails.

bigchrisb

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Re: Australian Investing Thread
« Reply #4103 on: July 04, 2018, 01:04:30 AM »
Another gigantic quarterly dividend for our Vanguard funds.. like 4.5% on the High Growth LifeStrategy..

Impossible to plan for that kind of shit, particularly when estimate annual income for FTB, childcare etc. I don't feel like we receive any adequate notice, maybe I'm just not paying enough attention to the right emails.

One of the reasons for the large distribution component from index funds was the sale of Westfield to Unibail Rodamco.  About a third of this was cash, two thirds URW securities.  The cash element came out as a distribution.  When you consider the size of WFD in the Australian index, this significantly boosted this quarter's distribution.

Its also one of the reasons I'm a bit hesitant about treating index fund distributions the same way as a dividend from other shares - they often include elements of capital being distributed along the income, however the breakout of this ins't always apparent at the time.  I try not to fall into the trap of thinking that if I only draw-down index fund distributions that I will be preserving my capital holdings - not the case.

 

lush

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Re: Australian Investing Thread
« Reply #4104 on: July 05, 2018, 11:36:01 PM »
CGT Question on Shares:  When calculating CGT for property you have a baseline of an overall amount that you paid for the purchase of the property to work off. However with shares as these grow gradually, and purchase cost will vary, how does the CGT get calculated if there is no baseline to work off? Thanks.

PDM

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Re: Australian Investing Thread
« Reply #4105 on: July 05, 2018, 11:57:07 PM »
CGT Question on Shares:  When calculating CGT for property you have a baseline of an overall amount that you paid for the purchase of the property to work off. However with shares as these grow gradually, and purchase cost will vary, how does the CGT get calculated if there is no baseline to work off? Thanks.

By each parcel you bought - that is your purchase price for CGT purposes. Can be many different transactions.

mjr

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Re: Australian Investing Thread
« Reply #4106 on: July 06, 2018, 12:00:25 AM »
and to answer your next question, yes if you have many parcels then this becomes complicated.  If you have many many months of dividend reinvestment, then that's a lot of CGT calculations when you sell.

Grogounet

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Re: Australian Investing Thread
« Reply #4107 on: July 06, 2018, 12:05:13 AM »
no choice: an excel file with dop price and exact date + same for dividends

potm

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Re: Australian Investing Thread
« Reply #4108 on: July 06, 2018, 01:36:24 AM »
Check out https://www.sharesight.com/au/

Should be able to calculate for you if you set it up properly. Not sure if CGT calc comes woth the free version.

mjr

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Re: Australian Investing Thread
« Reply #4109 on: July 06, 2018, 01:51:22 AM »
The free version does CGT reporting.  The free version is available if you have 10 or fewer stocks in the portfolio.

marty998

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Re: Australian Investing Thread
« Reply #4110 on: July 06, 2018, 02:15:24 AM »
no choice: an excel file with drp price and exact date + same for dividends

And each year lop a bit off each parcel proportionately for the tax deferred distribution component.

lush

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Re: Australian Investing Thread
« Reply #4111 on: July 06, 2018, 03:42:42 AM »
no choice: an excel file with drp price and exact date + same for dividends

And each year lop a bit off each parcel proportionately for the tax deferred distribution component.

Thanks for everyone's feedback.

I thought it might be a bit complicated. Ok, so Vanguard provides me with a yearly tax summary statement - so I think I might start with that. As well a complete transaction history which I can bring into a spreadsheet.

But I am still confused as to what to do calculation wise. How can I work out the CGT impact of removing say $50k from a an overall portfolio value of $1M....when the first investment in the Wholesale Balanced Vanguard Fund started back in 2016, at around $200k, and since then I have been adding more funds and reinvesting the distributions. This means that some of the recent earnings in the portfolio may not allow the 50% CGT discount rate. Or does the CGT just look at the start date of the portfolio, as opposed to top up dates to make that determination? 

Also I don't know when building the calculations if I take an average of the purchase price to date for units and then compare that to the current value to sell the units to see what loss or gain has been made by understanding the averages. I can't think of how else you can do it. I hope I am making sense!

I know I will have to get my accountant involved, however, I like to try to work things out for myself so I have a better understanding of it all.


PDM

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Re: Australian Investing Thread
« Reply #4112 on: July 06, 2018, 03:54:11 AM »
You'll need to identify which units you are selling to make up the $50k. The ASX doesn't care and thinks they're all the same, but the ATO does.

https://www.ato.gov.au/General/Capital-gains-tax/Shares,-units-and-similar-investments/Identifying-when-shares-or-units-are-acquired/

Basically you don't use averages at all.

lush

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Re: Australian Investing Thread
« Reply #4113 on: July 06, 2018, 04:56:39 AM »
You'll need to identify which units you are selling to make up the $50k. The ASX doesn't care and thinks they're all the same, but the ATO does.

https://www.ato.gov.au/General/Capital-gains-tax/Shares,-units-and-similar-investments/Identifying-when-shares-or-units-are-acquired/

Basically you don't use averages at all.

Thanks for this article. It is very helpful. It looks like you can the determine the units to baseline against  - which in some ways seems a bit flawed, as I guessing most people woud choose units to be suit / limit their CGT impacts.

Also there was this quote at the end of the article about averages:

We'll also accept an average cost method to determine the cost of the shares disposed of if:

    the shares are in the same company
    the shares were acquired on the same day
    the shares have identical rights and obligations
    you're not required to use market value for cost base purposes.

Grogounet

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Re: Australian Investing Thread
« Reply #4114 on: July 09, 2018, 03:28:06 PM »
thanks for the note at the end of the article and it leaves me to say that there is still room for interpretation. i m still find an accountant who REALLY understand what he is talking about and doesn t charge a ridiculous amount for it.

lush

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Re: Australian Investing Thread
« Reply #4115 on: July 09, 2018, 04:31:47 PM »
So just read this in my Tax Information from Vanguard regarding Wholesale Funds:

AMIT is a significant industry-wide reform, which introduces new concessional tax rules for managed investment trusts. Under the AMIT regime, investors will be assessed on the taxable income that is ‘attributed’ to them by a Fund on a ‘fair and reasonable’ basis (called ‘attribution’ of income)

Can anyone explain simple terms what this means - I have tried to work out from the ATO site - but too confusing for me.


Notch

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Re: Australian Investing Thread
« Reply #4116 on: July 09, 2018, 04:54:52 PM »
So just read this in my Tax Information from Vanguard regarding Wholesale Funds:

AMIT is a significant industry-wide reform, which introduces new concessional tax rules for managed investment trusts. Under the AMIT regime, investors will be assessed on the taxable income that is ‘attributed’ to them by a Fund on a ‘fair and reasonable’ basis (called ‘attribution’ of income)

Can anyone explain simple terms what this means - I have tried to work out from the ATO site - but too confusing for me.

The biggest change for us is that when a Vanguard fund distributes more 'tax obligations' than it does cash, you can increase the cost base of your units.

This is to stop double taxation of capital gains that occurs when Vanguard sells shares to payout leaving unitholders, and ends up realising large capital gain 'tax obligations' that it then has to distribute to the remaining unitholders but doesn't have any corresponding cash to pass along with it.
« Last Edit: July 09, 2018, 05:34:49 PM by Notch »

lush

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Re: Australian Investing Thread
« Reply #4117 on: July 11, 2018, 02:11:36 AM »
So just read this in my Tax Information from Vanguard regarding Wholesale Funds:

AMIT is a significant industry-wide reform, which introduces new concessional tax rules for managed investment trusts. Under the AMIT regime, investors will be assessed on the taxable income that is ‘attributed’ to them by a Fund on a ‘fair and reasonable’ basis (called ‘attribution’ of income)

Can anyone explain simple terms what this means - I have tried to work out from the ATO site - but too confusing for me.

The biggest change for us is that when a Vanguard fund distributes more 'tax obligations' than it does cash, you can increase the cost base of your units.

This is to stop double taxation of capital gains that occurs when Vanguard sells shares to payout leaving unitholders, and ends up realising large capital gain 'tax obligations' that it then has to distribute to the remaining unitholders but doesn't have any corresponding cash to pass along with it.

Thanks Notch. I guess that's why each June payout (in the past) has been so significant. However overall do you think this will have a negative or postive impact for investors?

marty998

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Re: Australian Investing Thread
« Reply #4118 on: July 11, 2018, 05:28:33 AM »
So just read this in my Tax Information from Vanguard regarding Wholesale Funds:

AMIT is a significant industry-wide reform, which introduces new concessional tax rules for managed investment trusts. Under the AMIT regime, investors will be assessed on the taxable income that is ‘attributed’ to them by a Fund on a ‘fair and reasonable’ basis (called ‘attribution’ of income)

Can anyone explain simple terms what this means - I have tried to work out from the ATO site - but too confusing for me.

The biggest change for us is that when a Vanguard fund distributes more 'tax obligations' than it does cash, you can increase the cost base of your units.

This is to stop double taxation of capital gains that occurs when Vanguard sells shares to payout leaving unitholders, and ends up realising large capital gain 'tax obligations' that it then has to distribute to the remaining unitholders but doesn't have any corresponding cash to pass along with it.

Thanks Notch. I guess that's why each June payout (in the past) has been so significant. However overall do you think this will have a negative or postive impact for investors?

It's a positive. It's designed to stop instances where for example a large investor invests into the fund on say June 29, and materially changes the allocation of the income earned between all investors for that quarter.

I am far too distracted watching Origin to write an example, but I think you can figure it out ;)

Grogounet

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Re: Australian Investing Thread
« Reply #4119 on: July 11, 2018, 07:45:06 PM »
Still very confusing and I guess so confusing you can contest in case of issue with the ATO.

mjr

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Re: Australian Investing Thread
« Reply #4120 on: July 12, 2018, 02:18:51 AM »
Still very confusing and I guess so confusing you can contest in case of issue with the ATO.

That is NOT how the ATO works.  If you're confused, that's your problem.  While they're mostly happy to help answer questions, they're not particularly interested if you try and contest their opinion.
« Last Edit: July 12, 2018, 02:20:47 AM by mjr »

lush

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Re: Australian Investing Thread
« Reply #4121 on: July 12, 2018, 05:44:28 PM »
So just read this in my Tax Information from Vanguard regarding Wholesale Funds:

AMIT is a significant industry-wide reform, which introduces new concessional tax rules for managed investment trusts. Under the AMIT regime, investors will be assessed on the taxable income that is ‘attributed’ to them by a Fund on a ‘fair and reasonable’ basis (called ‘attribution’ of income)

Can anyone explain simple terms what this means - I have tried to work out from the ATO site - but too confusing for me.

The biggest change for us is that when a Vanguard fund distributes more 'tax obligations' than it does cash, you can increase the cost base of your units.

This is to stop double taxation of capital gains that occurs when Vanguard sells shares to payout leaving unitholders, and ends up realising large capital gain 'tax obligations' that it then has to distribute to the remaining unitholders but doesn't have any corresponding cash to pass along with it.

Thanks Notch. I guess that's why each June payout (in the past) has been so significant. However overall do you think this will have a negative or postive impact for investors?

It's a positive. It's designed to stop instances where for example a large investor invests into the fund on say June 29, and materially changes the allocation of the income earned between all investors for that quarter.

I am far too distracted watching Origin to write an example, but I think you can figure it out ;)

Thanks Marty - yep I get it now! Cheers!

mjr

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Re: Australian Investing Thread
« Reply #4122 on: July 20, 2018, 04:06:49 PM »
Did anyone get their VTS dividend payment yesterday ?  Mine are nowhere to be seen.

FFF

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Re: Australian Investing Thread
« Reply #4123 on: July 20, 2018, 05:30:58 PM »
Did anyone get their VTS dividend payment yesterday ?  Mine are nowhere to be seen.

Likewise mjr, nothing received for VTS and VEU either. It’s usually in my ING account by the evening so glad to hear I’m not the only one. I’m sure it’ll be in on Monday, hopefully it’s just because the payment was made on a Friday this time - can’t wait for the NPP to be fully functional!

Primm

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Re: Australian Investing Thread
« Reply #4124 on: July 21, 2018, 11:54:58 PM »
Did anyone get their VTS dividend payment yesterday ?  Mine are nowhere to be seen.

Likewise mjr, nothing received for VTS and VEU either. It’s usually in my ING account by the evening so glad to hear I’m not the only one. I’m sure it’ll be in on Monday, hopefully it’s just because the payment was made on a Friday this time - can’t wait for the NPP to be fully functional!

Same. Got the email but no money.

No Money No Problems

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Re: Australian Investing Thread
« Reply #4125 on: July 25, 2018, 06:09:16 AM »
Long time lurker first time poster.

I'm 32 and have no share investments and no super.

If I have a 30 year investment horizon, am I best served by plowing my money into super e.g. hostplus vs investing in the index outside super, because of tax benefits?




itchyfeet

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Re: Australian Investing Thread
« Reply #4126 on: July 25, 2018, 10:35:45 AM »
I’d do a bit of both. It depends on your salary but the tax incentives of Super are significant. ON the other hand it’s also nice to have a stash that you don’t have to wait till 60 to access.

deborah

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Re: Australian Investing Thread
« Reply #4127 on: July 25, 2018, 01:20:55 PM »
Long time lurker first time poster.

I'm 32 and have no share investments and no super.

If I have a 30 year investment horizon, am I best served by plowing my money into super e.g. hostplus vs investing in the index outside super, because of tax benefits?




It depends upon how much you can save. You currently have a 30 year investment horizon, which I assume means that you think you’re only saving enough to retire at 62. In that case, you would have access to your super, and putting most into super is a reasonable way to go.

However, if you tackle your expenses, and get them to 20% of your income, you would be saving 4 years of expenses each year, and could retire in 6 years. In that case, keeping all your money outside super would be the way to go.

If you have only just found MMM, and you like the idea of retirement, I suggest starting by investing outside super for the first year, while you adjust your spending patterns. This gives you funds you can use before you retire for doing things like buying a house. Then in a year, you can review what you’re doing.

You can now play catch-up with super (from this year they will allow you to put in up to five years of concessional contributions that you haven’t made - this year is year 1). So you could invest outside super for up to 5 years while you are working out exactly when you think you can retire without any penalties.


MrThatsDifferent

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Re: Australian Investing Thread
« Reply #4128 on: July 25, 2018, 01:55:17 PM »
Long time lurker first time poster.

I'm 32 and have no share investments and no super.

If I have a 30 year investment horizon, am I best served by plowing my money into super e.g. hostplus vs investing in the index outside super, because of tax benefits?

Because of the tax advantages the way I’d go is to get that $25k Max into your Super and then any excess into Vanguard. If you have no super, now’s the time to build it up. But if you’re 32 and no super something special must be going on in your situation so without more info, it’ll be tough for people to advise.

No Money No Problems

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Re: Australian Investing Thread
« Reply #4129 on: July 25, 2018, 08:45:07 PM »

Because of the tax advantages the way I’d go is to get that $25k Max into your Super and then any excess into Vanguard. If you have no super, now’s the time to build it up. But if you’re 32 and no super something special must be going on in your situation so without more info, it’ll be tough for people to advise.

Its funny in a way because when I was a kid I was a Mustachian through and through. I had 80k saved by the time I was 19. Then due to a change in circumstance I went over to the dark side and ended up travelling for several years before settling back in Oz.

I have no personal debt. I run my own company hence no super. I owe 350k on my mortgage (aim to pay this off in next 10 years)

I can put 250-500 a week into index or super per week from this point and thank you Deborah for the advice regarding putting in 5 backdated years of concessional contributions that might be a good interim solution.

Reading these forums is a little overwhelming as I look back at the last 10 years of my life. Small changes here and there could have resulted in a nice little retirement pot hence why I now have a 30 year time frame.

MrThatsDifferent

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Re: Australian Investing Thread
« Reply #4130 on: July 25, 2018, 09:53:56 PM »

Because of the tax advantages the way I’d go is to get that $25k Max into your Super and then any excess into Vanguard. If you have no super, now’s the time to build it up. But if you’re 32 and no super something special must be going on in your situation so without more info, it’ll be tough for people to advise.

Its funny in a way because when I was a kid I was a Mustachian through and through. I had 80k saved by the time I was 19. Then due to a change in circumstance I went over to the dark side and ended up travelling for several years before settling back in Oz.

I have no personal debt. I run my own company hence no super. I owe 350k on my mortgage (aim to pay this off in next 10 years)

I can put 250-500 a week into index or super per week from this point and thank you Deborah for the advice regarding putting in 5 backdated years of concessional contributions that might be a good interim solution.

Reading these forums is a little overwhelming as I look back at the last 10 years of my life. Small changes here and there could have resulted in a nice little retirement pot hence why I now have a 30 year time frame.

Great, well, if you can put in $500/week to super, do it! As Deborah said, if you plan to work for 30 more years, use super as your main vehicle.

Also, The Barefoot Investor is pretty good, simple to read and grasp and tailored for Australians.
« Last Edit: July 25, 2018, 09:55:36 PM by MrThatsDifferent »

deborah

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Re: Australian Investing Thread
« Reply #4131 on: July 25, 2018, 11:22:48 PM »
https://www.moneymanagement.com.au/features/carry-forward-unused-concessional-contributions-cap

This is an interesting article on benefits of using the 5 year rule in different scenarios.

Andy R

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Re: Australian Investing Thread
« Reply #4132 on: July 31, 2018, 10:30:15 AM »
Sorry for the possibly stupid question, but I don't quite understand the point of bonds vs a high interest savings account.
I've heard that stocks have returned about 6% real and bonds 2% real over the past whatever long time period, but I see nowhere that bonds are returning 2% over inflation which would be around 4%. In fact VFI/VGB are around 2%, which is about the same as inflation meaning no real return, and lower than RAMS high interest savings account.

I am aware we are at the end of a multi-decade bonds bull run with interest rates going to crazy heights a few decades ago and steadily coming down over this very long period driving the bonds market, but this is not only in Australia, so I don't quite get why people (outside of Australia also) continue to suggest bonds over just keeping cash, and also the fact that both of them seem to have no real return at all after inflation, which is very unlikely to change for a very long time since interest rates are at crazy low levels and has only one way to go.

Could someone please tell me what I must be completely missing here? Where exactly is the return with bonds that people continue to recommend them?
« Last Edit: July 31, 2018, 10:53:28 AM by Andy R »

deborah

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Re: Australian Investing Thread
« Reply #4133 on: July 31, 2018, 11:29:15 AM »
Like shares and property and cash and gold, bonds are a completely separate investment stream. In the past (pre GFC), bonds gave good returns when other investments were giving poor returns. This has made them an extremely good diversification tool in your portfolio. Unfortunately the link appears to have broken, and they have been less valuable in portfolios since the GFC.

mjr

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Re: Australian Investing Thread
« Reply #4134 on: July 31, 2018, 09:59:10 PM »
It is my view as well that bonds are not a good investment at this stage of the interest rates cycle.

Bonds are and have been always more popular in the US, probably due to lower interest rates on savings accounts/CDs.

Bond yields now are mediocre at best compared to term deposit rates and bond prices have no where to go from here except down.

Andy R

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Re: Australian Investing Thread
« Reply #4135 on: August 01, 2018, 09:50:21 PM »
Thanks @deborah @mjr

I was not aware that that the US has lower interest on savings vs bonds unlike Australia, but that would make sense then.
I wonder what the situation will be for bonds going forward since developed economies now have a target of 2-3% inflation and will pull levers (such as interest rates) to maintain it. I wonder if that means real returns for bonds will remain at or close to zero as the new norm.
Certainly sux that there is basically no real return now, as bonds or savings accounts both match inflation and are not over, but I guess you take what you can get when there is no other option for low risk returns =/
Definitely seems wacky that bonds can return equal or lower than cash though.

I see people putting some money in international REIT's, infrastructure, and utilities as a lower risk lower return (more as you move from left to right in that list), but that's still not exactly low risk the way bonds are.

centastic

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Re: Australian Investing Thread
« Reply #4136 on: August 05, 2018, 01:49:10 AM »
The main difference is that there is a capital gain/loss component to bonds.

The remaining term on the bond "amplifies" the capital gain/loss.

Think of it as a hedge against a period of deflation. A couple of years ago all economist talking heads were saying that the ex-Japan developed world was heading toward a similar situation as Japan, ie low growth, dipping into deflation. As a result the price of long term bonds shot through the roof (I don't have Australian data but US 20+ year term bonds went up 25% in 2014). Things back to normal now, so probably a good time to be cautiously accumulating them.

marty998

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Re: Australian Investing Thread
« Reply #4137 on: August 10, 2018, 07:35:32 PM »
I am still here twiddling my thumbs waiting for my Vanguard tax statement so I can do my tax return.

Almost tempted to pay 1bp extra in management fees so they can hire another tax accountant to push things along :)

Hopefully it will be out this week.

Eucalyptus

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Re: Australian Investing Thread
« Reply #4138 on: August 10, 2018, 08:40:20 PM »
Not for me as I have a mortgage to offset, but my Sister and BIL got an ING savings account the other day at 2.8%. She said it was really easy to set up. To get the 2.8% they have to deposit $1000 a month, and make at least 5 transactions on the attached debit account (which came with a debit card (one for each of them) and can eft etc).


Is 2.8% about as good as it gets at the moment for cash savings?

PDM

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Re: Australian Investing Thread
« Reply #4139 on: August 10, 2018, 09:59:47 PM »
Not for me as I have a mortgage to offset, but my Sister and BIL got an ING savings account the other day at 2.8%. She said it was really easy to set up. To get the 2.8% they have to deposit $1000 a month, and make at least 5 transactions on the attached debit account (which came with a debit card (one for each of them) and can eft etc).


Is 2.8% about as good as it gets at the moment for cash savings?

Sounds worse than RAMS.

https://www.rams.com.au/savings-and-transactions/rams-saver/

3%. $200 per month and don't make any withdrawals.

The needing to make 5 transactions would annoy me. Particularly if ING wasn't my main bank. I also dislike having too many cards.

MrThatsDifferent

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Re: Australian Investing Thread
« Reply #4140 on: August 10, 2018, 10:00:28 PM »
I am still here twiddling my thumbs waiting for my Vanguard tax statement so I can do my tax return.

Almost tempted to pay 1bp extra in management fees so they can hire another tax accountant to push things along :)

Hopefully it will be out this week.

I went online and got mine.

mjr

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Re: Australian Investing Thread
« Reply #4141 on: August 10, 2018, 11:57:11 PM »
I am still here twiddling my thumbs waiting for my Vanguard tax statement so I can do my tax return.

Almost tempted to pay 1bp extra in management fees so they can hire another tax accountant to push things along :)

Hopefully it will be out this week.

I went online and got mine.

For the managed funds?  Because Computershare have indicated that the ETF  statements are not coming out until mid-August.


MrThatsDifferent

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Re: Australian Investing Thread
« Reply #4142 on: August 11, 2018, 02:33:35 AM »
I am still here twiddling my thumbs waiting for my Vanguard tax statement so I can do my tax return.

Almost tempted to pay 1bp extra in management fees so they can hire another tax accountant to push things along :)

Hopefully it will be out this week.

I went online and got mine.

For the managed funds?  Because Computershare have indicated that the ETF  statements are not coming out until mid-August.

I have the life strategy retail fund

BattlaP

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Re: Australian Investing Thread
« Reply #4143 on: August 12, 2018, 03:26:50 AM »
Yeah someone wake me up when eTax autofills Vanguard managed funds, I don't even bother until then

c3044897

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Re: Australian Investing Thread
« Reply #4144 on: August 14, 2018, 12:09:56 AM »
Hi guys,

I'm sure this has been asked a million times before - but I could not find it myself.

Is there a 'standard' index fund, or group of index funds that you would recommend investing in to get a portfolio started?

FYI I'm 31, no investments outside of my PPOR and Super. Aiming for financial independence by 50.

Thank you!

deborah

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Re: Australian Investing Thread
« Reply #4145 on: August 14, 2018, 12:27:54 AM »
Hi guys,

I'm sure this has been asked a million times before - but I could not find it myself.

Is there a 'standard' index fund, or group of index funds that you would recommend investing in to get a portfolio started?

FYI I'm 31, no investments outside of my PPOR and Super. Aiming for financial independence by 50.

Thank you!
A fair bit of this thread is devoted to looking at different people’s different allocations. You could do worse than reading the thread and see what ideas you have at the end. It’s messy, but it might help you in other ways as well.

kiwiozearlyretirement

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Re: Australian Investing Thread
« Reply #4146 on: August 14, 2018, 08:17:23 AM »
Is anyone invested with beta shares A200 with its nice low fees. I was all excited as it seems pretty close to VAS and apparently the additional 100 companies only add another 3% of total worth to the index (VAS 300 vs beta shares 200). But did anyone notice the dividend for beta shares was 0.20 per unit. Seem woeful compared with VAS 1.02 also considering beta shares is already $104 per unit and VAS is still $80. What's going on aren't they tracking a similar index?

Eucalyptus

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Re: Australian Investing Thread
« Reply #4147 on: August 16, 2018, 03:36:18 AM »
Is anyone invested with beta shares A200 with its nice low fees. I was all excited as it seems pretty close to VAS and apparently the additional 100 companies only add another 3% of total worth to the index (VAS 300 vs beta shares 200). But did anyone notice the dividend for beta shares was 0.20 per unit. Seem woeful compared with VAS 1.02 also considering beta shares is already $104 per unit and VAS is still $80. What's going on aren't they tracking a similar index?


To save people time looking it up:
https://www.betashares.com.au/fund/australia-200-etf/


The fund inception date was 7 May 2018 and from what I can tell there has only been one dividend distribution so far...assuming that would only be for a partial quarter, which could explain the relative lower dividend? Or I could be missing something?




marty998

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Re: Australian Investing Thread
« Reply #4148 on: August 17, 2018, 08:29:14 PM »
Is anyone invested with beta shares A200 with its nice low fees. I was all excited as it seems pretty close to VAS and apparently the additional 100 companies only add another 3% of total worth to the index (VAS 300 vs beta shares 200). But did anyone notice the dividend for beta shares was 0.20 per unit. Seem woeful compared with VAS 1.02 also considering beta shares is already $104 per unit and VAS is still $80. What's going on aren't they tracking a similar index?


To save people time looking it up:
https://www.betashares.com.au/fund/australia-200-etf/


The fund inception date was 7 May 2018 and from what I can tell there has only been one dividend distribution so far...assuming that would only be for a partial quarter, which could explain the relative lower dividend? Or I could be missing something?

Also sounds like Beta Shares started at $100 whereas VAS started at $50 a unit many years ago.

BRAFRA

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Re: Australian Investing Thread
« Reply #4149 on: August 18, 2018, 05:20:08 PM »
Just bought $20k of VEU and keeping a large chunk in cash, wondering if the bull market will last for long...

ATO says that: You can't claim a deduction for some costs related to purchasing your shares, such as brokerage fees and stamp duty, but you can include them in the cost base (cost of ownership - which you deduct from what you receive when you dispose of the shares) to work out your capital gain or capital loss.
Is it a simple pro-rata for the purchase, like $100 for 200 shares so $0.5 per share of brokerage fee, and the same when you sell?