Are the Wilson LICs a good alternative for passive income? Is it really worth avoiding stocks if interest rates are so high? Is 4 ASX shares enough for my kids?
The Australian Investors Podcast, Australia’s best investing podcast for professionals and private investors, is back for “2 sense”, hosted by investment analyst Owen Rask and financial planner Drew Meredith, CFP (AKA Andrew Deremith).
Questions answered
| Meredith | I’m 35 yrs old, i have a colonial first state managed fund -CFS MIF Australian Share (1600.AX) $2.1578 for almost 15 years. I only started topping up the investment distribution the last 5 years $50-$100 every week.
The invest is now sitting at 56K. with last years return at almost 8k. I’ve never really thought too much about my current investment until few week ago, where i’ve started become more interest in investing and trying to understand the manage fund I’ve had. I’ve stumbled and found your podcast and been doing a lot of research. I may have realised my investment isn’t doing as well as I think its doing at the 15 year mark. I’ve been thinking of pulling out all or half the portion of my investment into a ETF I just bought stocks in. Is it wise to move this 56k now in part, or all, to a ETF I’m interested in? Would it be wiser to leave it as it is, And focus on the current VDHG ETF I just bought stock in? |
| Baby Buffett | We just had our first child. He is less than a week old and want to get him compounding ASAP! I have looked at setting up a minors account on CMC, but I am not entirely clear on how the tax for children works, the rate seems insanely high. |
| You are flat earthers | Not really a question… but listening to 18 Feb episode and your reference to to the “extra payment” of paying home loans fortnightly vs monthly. IMO that is one of the worst understood vauge statements. In fact I had an arguement with a big bank employee outside a pub one night about it. Ties payments to your payments, not a vauge rule that doesn’t hold except for specific scenarios. I know not investment focused, but for me to highlights why you should work the numbers yourself and check the vauge general statements and make sure they hold for you. |
| Go long or go home. | Do you think there is a role for low cost LIC’s in a core portfolio, instead of ETFs or in combination with ETFs? I look at some LIC’s like AFI and BKI and they have good returns over a long time and, I think could still help me build wealth over time. |
| Mark Twain | Interesting episode on Property 14/01. I was thinking of investing in a property but going P&I, and also doing it in a location that I might one day want to retire. Thereby bluring the lines of investment and lifestyle (sorry!), but still following the “buy land, they’re not making it anymore” ideal. High level thoughts? |
| How much for’a goodish spleen? | Are trusts worth using for property flipping? |
| Ova Welmed | Just starting out (28 years) but feel like I’ve left it too late! We have a mortgage, combined income 230k/year & 2 children. No other debt. Any suggestions?? We’ve just been using vanguard & buying our favourite companies (probably not the best strategy!). Thank you |
| Halvin Carris 80s born and 90s raised. | I am attempting to build a small portfolio for my kids to inherit in about 20 years. Currently I own some WES, TNE, JIN and unfortunately IRI (keep in mind I’m here for the long haul). Would I be smarter in picking up Sol Pat to spread my wings or hone in on WES a bit more as it’s long term growth is positive (advice I hear from you guys all the time)? Love listening to the podcast and a big shout out to the Calvin Harris reference last week. |
| Max the guard dog of Glasgow | Hey guys,
Keen for your thoughts on how a margin loan investing in a (boring) ETF portfolio (VAS, IVV etc.) compares with a home loan for an investment property as a long term investment (>15 years)? Lets say I’ve fully offset my PPOR and am working full time at a decent marginal tax rate. I know the lending rates for margin loans are higher, but avoiding the hassles of stamp duty, property managers, tenants, rates etc. seem very attractive advantages indeed. What would you go for, particularly in the current property market with rising interest rates? Many thanks! Max the guard dog of Glasgow |
| #Don’twannaendupinUSprision | Hey Hey, I bought some Resmed shares from ASX. Received a letter today saying dear CDI holder please review if you need a W-8BEN form. What does this mean? I thought I bought off the asx so wouldn’t need to be filling out these US forms. What happens if I don’t fill out the form? |
| Jolly Rogerer | What are your thoughts on commercial property values across Australia? With interest rates marching ever higher do you think that there will be an inevitable devaluation of commercial assets? |
| Closet financial nerd | Wam, bam, thank you mam. Fellas… my wife and I are on the verge of FIRE with a plan to live off dividend income.
A large chunk of our investments are in Wilson Asset LICs (Wam, Wax, Wmi). Their yield is epic (6 to 7 percent plus franking) however recently there share prices have dropped significantly leading to mass anxiety about our investment choices. What is your outlook for Wilson Asset Management LICs? Is the yield sustainable and can the share prices recover? Thank guys. Love your Pods…. PS – Am I the only person to listen to financial pods whilst training at the gym. Certainly beats eye of the tiger to get fired up 😎 |
| “Cry”pto | Can I have 1 HIN but for multiple online brokers? eg: Have a Pearler and Commsec account but with 1 HIN |
| Owen my portfolio went marching up | Who are the biggest winners you guys have seen so far from half yearly reports? PLS inaugural div and HLI have got to be the ones for me. What’s surprised you to the upside? |
| Anita Gofrad Ump | Thanks for your specific advice from my last question, I sold everything the following monday morning ;). I need to sell for tax reasons. I am ready to get back in now and want to DCA. For $150k, what would be the best period to phase this over? 2, 6, 9, 12 months…? 15k over ten months is nice and neat….? However, if I had $1.5m, how would this change things? |
| Mr No eye dear | Would be amazing to hear your thoughts on POS and CXO, love Kel xo |
| “Andrew Deramyth” gave his chimney away for free … It was on the house. 🏆 | Curious on your thughts re the difference in investing in super directly via etfs [Think Hostplus] vs the Superfund investings on my behalf.[insurance etc aside]. looking at the fees for a pretty generic ASX300 looking investment option with UniSuper it is 0.37% https://www.unisuper.com.au/investments/how-we-invest/holdings-returns-and-costs/investment-costs and with Hostplus i could go with VAS for .10% https://hostplus.com.au/content/dam/hostplus-program/site/resources/investments/0966-Hostplus-ETF-Listing.pdf.coredownload.pdf – i can’t see alpha scope looking at the Unisuper holding https://www.unisuper.com.au/investments/our-investment-options/option-holdings?optionid=11 |
| Phil####y 🏆 | Ahoy lads, love your podcasts and the bants between everyone on the show. I wanted to touch upon a question I believe Drew answered where another listener had asked between whether they should pay off their mortgage or invest and the general answer was that if you pay off non deductible debt, you would be able to ‘lock in’ a certain ‘saving’. What I wanted to ask about that was when you weigh up compound interest and growth vs paying off mortgage at these higher interest rates, how do you propose someone even start investing because on that premise, wouldn’t any disposable income go towards paying off the mortgage so you wouldnt have much anyway into investing into VAS/VGS etc or even blue chips. Feeling a bit deflated after that podcast because I always kept thinking I should be investing paycheck to paycheck but then my mortgage appears to be never ending anyway so how does someone get ahead! |
this episode, you’ll LOVE our series. Episodes go live every Saturday at 7 am and Wednesday arvo.
