Australian Investing Thread

[Minion]

I have been using Rick Williams for many years, highly recommended.

[Vinkyb]

Thanks Minion

[Wadiman]

Hi all!  I haven't been here for a while - things are looking pretty quiet - is everyone over in the Reddit forums?

Anyhoo, if anyone is still active here - interested in thoughts on direct corporate bonds - i'm looking at investing part of the proceeds from my future PPOR sale into a diversified portfolio of mainly investment grade bonds via FIIG.  Anyone gone down this route?  I will be targetting a return of circa 4% and a total portfolio of circa $250k with staggered maturities.  I plan to hold most bonds to maturity to be certain (well 90% certain) of getting back the capital.

Thanks! 

[superannuationfreak]

Anyhoo, if anyone is still active here - interested in thoughts on direct corporate bonds - i'm looking at investing part of the proceeds from my future PPOR sale into a diversified portfolio of mainly investment grade bonds via FIIG.  Anyone gone down this route?  I will be targetting a return of circa 4% and a total portfolio of circa $250k with staggered maturities.  I plan to hold most bonds to maturity to be certain (well 90% certain) of getting back the capital.

What are your goals for this money? E.g. Just part of overall FIRE funds or a future ppor?

To get 4% yield to maturity (or yield to worst) we're taking a fair amount of risk, without looking too hard I'd guess barely or sub investment grade today.

How much can you afford to lose, and how much liquidity might you need? This proxy is an exaggeration but can you manage a 20% fall in value? https://www.spglobal.com/spdji/en/indices/fixed-income/sp-australia-high-yield-corporate-bond-index/#overview

You're also not really saving in fees, the buy-sell spread for retail will take a chunk too.

[Wadiman]

Thanks for sharing your thoughts.

The funds would be used to replenish my cash stash (three years equivalent) over time for living costs.

I'm pretty confident that portfolio could be weighted to be at least 80% investment grade at get close to 4% YTM overall.

I wouldn't be selling (generally speaking) until maturity so that does reduce risk and costs.

[MustacheAndaHalf]

This thread was created back when the only Australia-specific place was in the Taxes area.  But that is now a general Australia forum, under "Around the World" instead of taxes (despite the same URL):
https://forum.mrmoneymustache.com/australia-tax-discussion/

That might be a better place to ask about accountants, supers, etc.

[Wadiman]

Thanks Mustache + 1/2!

Have posted over there.

[Richmond 2020]

Check out those VAS dividends!  $1.41

Yeah noice. Was expecting an increase but that’s huge.

Wow another big quarterly dividend from VAS! $2.00 a share.

[Richmond 2020]

Estimated dividend for VAS for qtr ended 30 June 2022 is $2.17 a share. Companies continuing to pay out large dividends.

[theninthwall]

Wow. So are my sums right that VAS is producing around a 10% yearly dividend?

[mspym]

Paying out some of the price-gouging profits as dividends.

[GT]

Paying out some of the price-gouging profits as dividends.

All that Jobkeeper that was taken in bad faith.

[Notch]

This is why I hold my Australian equities allocation inside my superannuation.

[chevy1956]

This is why I hold my Australian equities allocation inside my superannuation.

I'm retired and I don't have enough in VAS to pay taxes. Wifey and myself can earn a lot of dividends before it impacts our taxes. If anything we should get a nice rebate.

[marty998]

Paying out some of the price-gouging profits as dividends.

All that Jobkeeper that was taken in bad faith.

Not entirely true. This quarter's dividends are supersized due to the BHP/WPL corporate shenanigans.

There isn't enough jobkeeper in listed companies to have made a material difference. It was mostly (very large) private companies that heavily abused the goodwill of taxpayers.

[Richmond 2020]

This is why I hold my Australian equities allocation inside my superannuation.

I'm retired and I don't have enough in VAS to pay taxes. Wifey and myself can earn a lot of dividends before it impacts our taxes. If anything we should get a nice rebate.

I’m in a similar position of loving the dividends. I retired early to raise the kids while the wife works for a couple more years. Our VAS holdings are mostly in my name so no tax implications for me. 

[mjr]

aaaand $1.45 for the October quarter.  Nice.