Show Notes
A bucket company doesn’t change my allocation: I’d still favour global shares. Rebalance with new money and dividends, not by selling. Campbell here, filling in for Stuart. Simon has $2 million in a bucket company and too much in Australian shares. I explain why the new minimum 30% tax on capital gains levels the playing field for companies, why retained franking credits are so valuable, and how to reweight without paying unnecessary capital gains tax. Penguin Guy has an ETF portfolio in a fa...
More from Investopoly
Read Full Blog Here 10-year bonds near 5.2% look good, but I’d rather use subordinated debt ETFs. They pay about 1% more with almost no interest rate risk. A listener asked whether it’s time to lock in long-dated fixed-rate bonds now that yields are at their highest in about 15 years. In this episode, I explain duration and credit risk, why it’s hard to earn more than your starting yield, and how to measure the term premium properly. I then compare long-dated government bonds with subordinate...
Read Full Blog Here Have full cover while you’re young and it’s cheap, then cut it back as your assets grow. Income protection matters most, trauma the least. In this episode I explain how we calculate life, TPD and income protection cover, and why the final step is weighing the premium against what that money could earn if you invested it instead. I also cover: Why we always use stepped premiums rather than level premiumsWhy life and TPD belong inside super and income protection outside itCh...
An 8.4% return isn’t the problem; what drove it is. I’d struggle to justify active funds and a 0.76% fee over a diversified ETF. In this listener Q&A, I explain how to judge short-term returns, why active fund outperformance rarely lasts, and why Jack probably doesn’t need to pay an adviser to run around $420,000 across super and his trust. I’d keep his family trust and gradually move his direct shares across when the price suits. I’d also keep his property as an investment under the six-...
Read Full Blog Here Russell says advice adds 5.5% a year and Vanguard says 3%. A disciplined, rules-based approach captures much of that, but not all of it. I think these reports overstate things by assuming that without an adviser you'll panic, chase returns and keep changing strategy. In this episode I split the mistakes the reports cite into two groups: the ones a rules-based framework prevents, like concentrated portfolios, cash drag and return chasing, and the ones it can't, like ownersh...
Selling your home needn’t undo debt recycling. I’d substitute the security with a term deposit or your next home to keep it deductible. In this listener Q&A I walk Dave through substitution of security and simultaneous settlements, and explain why I’d pay a little more for a flexible lender. I then answer Marcus on whether to offset an investment loan or use a high-interest savings account. On the top marginal rate the offset usually wins, unless a low-income spouse changes the maths. I a...