Retirement Stocks 2019

[Belli]

Probably but more than I already hold is too much for me.

VAS holds the top 300 companies on the ASX so it has most bases covered in that regard. And if a tiddler makes it, it'll get into the ASX 300. Those which fail are dropped.

As for VGS it's essentially the same concept. Has something like the top 1,600 companies ex-Australia and those companies use the production of other enterprises so I don't feel a need to target those enterprises. Some may find this interesting (providing the link works.)

https://www.vanguardinvestments.com...t.html#/fundDetail/etf/portId=8212/?portfolio

I attempt to keep my investment matters as simple as possible. For me, adding a holding which overall comprises, say, 1% of the holdings doesn't do much as far as I'm concerned.

I stay well away from ETFs which are concentrated, eg VHY as it could be subject to turnover which has CG impacts. OK if it's in super but not so OK if it isn't. Same avoidance issue with those ETFs which involve derivatives and the like. Keep it simple and keep placing funds irrespective of market mood.

Mind you there is a case for holding stuff outside super as it is possible to sell some shares with a profit of $30k and still not be subject to any personal tax ( $30k x 50% = $15k which is below the tax-free threshold.) Assumes no other personal income of course.

 

[Belli]

And completely off tangent but what the heck. My late wife and I considered it better to hold shares separately. Made estate planning better from a tax viewpoint for beneficiaries. Some may also wish to consider separate holdings. Imagine all the mess you may have to go through to get joint holdings of shares into one name.

And an oddity of tax. A household with a single income is financially worse of than a household of two separate incomes totaling that of the single income household. Application of two tax-free thresholds as opposed to one. Go figure.

 

[aus_trader]

In general i dont like ETF's much however i was thinking the other day that a big diversified portfolio made up of just ETF,s would have a few advantages.

Firstly set and forget, you just wouldn't have to worry about anything investment related, Secondly unlike individual stocks they cannot fail, so no 100% losers, thirdly a
big portfolio of 20 diverse ETF's would capture almost very outlier event, i mean like the best performing ETF last year was the Palladium (metal) ETF, went up like 80%
or so and has already gone up another 80% this year...who the hell is deliberately going to buy that?

With say 20 deliberately very diverse ETF,s you could have the world covered, all the commodities and currencies and indexes, equal weight, and a div yield of maybe 3%

Good thinking So_Cynical I also like to build a diversified set-and-forget portfolio. If there was an ETF or two that had the level of diversification that you mentioned that would be even better, rather than buying a whole basket of different ETFs.

 

[sptrawler]

And completely off tangent but what the heck. My late wife and I considered it better to hold shares separately. Made estate planning better from a tax viewpoint for beneficiaries. Some may also wish to consider separate holdings. Imagine all the mess you may have to go through to get joint holdings of shares into one name.

And an oddity of tax. A household with a single income is financially worse of than a household of two separate incomes totaling that of the single income household. Application of two tax-free thresholds as opposed to one. Go figure.

That is my goal eventually, I have enough outside super in shares in my wife's name, for her to keep under the tax free threshold. The investments in super are split between my wife and myself approx 30%/60%, hers in accumulation mine in pension, with 4% drawdown.
When mine goes from 5% to 6% drawdown, I will withdraw enough to hold outside super, to keep me under the tax free threshold.
Just my thinking, but I feel it gives me the greatest degree of flexibility, with regard controlling the money flow into and out of super.
The problem with super is the rules can and do change and usually you don't have any say in it.
Just my plan and it is open to change and criticism.

 

[Belli]

The problem with super is the rules can and do change and usually you don't have any say in it.

The problem ...........… is the rules can and do change and usually you don't have any say in it.

CGT, GST, variation to thresholds, corporate tax rates, elimination of deductions for travel and so on. Just as many, or possibly more, variations outside of super. While the changes are, er, annoying, I'm not fussed about them really as it's part of the investing landscape and we simply have to deal with what comes. Wouldn't deter me from contributing to super if the legislation permitted but it don't. Nor would it surprise me in the least if a future Government decided anyone over 65 yo, or pick some age, and not working should be allowed to have super funds in accumulation phase.

 

[Muschu]

Curious here.
I put in a buy order for VAS last evening. My order shows as In Market but does not show on the VAS buy/sell page where there are only 5 buyers. My buy order is at a lower price.
Is this something peculiar to ETFs? The order is not being “processed” but is active.

 

[Muschu]

I ended up phoning CommSec who are looking into my query. I cancelled the order and the opened another, which still does not show. My account is up to date and I haven’t experienced this before.
CommSec said they’d phone me back once it’s resolved.
No big deal, just unusual.

 

[DocK]

I ended up phoning CommSec who are looking into my query. I cancelled the order and the opened another, which still does not show. My account is up to date and I haven’t experienced this before.
CommSec said they’d phone me back once it’s resolved.
No big deal, just unusual.

I'm assuming it must be due to the ETF nature of the instrument as I also have two orders sitting under the present price for a couple of ETFs and they don't show in the depth of orders either. I'd guess that the manager (Vanguard, iShares etc) place bulk orders instead or something along those lines??

 

[Muschu]

Don't know DocK. There are 3 orders showing for VAS that are well below the price I have set. And these are very small orders as well - between 5 and 24 shares. And yet mine, for a much greater quantity, does not show and Commsec have not yet called me back.

 

[Muschu]

OK. I called Commsec back. I haven't bought an ETF before. It seems my order is active but does not show as ii is in the warrant exchange market - the AXW. If my order price gets into the top 5 prices then I gather [I think] that it will show.
Or something along those lines

 

[qldfrog]

Or is comsec bypassing the market thru its own pool of orders,possibly hitting you on the way
I found in the past that my sells on comsec at a minimum price get executed strangely at that price whereas on bell direct, they get executed as expected

 

[Muschu]

Or is comsec bypassing the market thru its own pool of orders,possibly hitting you on the way
I found in the past that my sells on comsec at a minimum price get executed strangely at that price whereas on bell direct, they get executed as expected

I have no idea but I’ve been using CommSec for years without any problems

 

[Belli]

An oldish thread but I'll use it rather than create a new one.

Have bought a few thousand of ARG last Thursday and yesterday but have been giving preference to VAS and VGS. Mostly VGS though as I would prefer to increase the international exposure.

I'll know when the bottom has been reached when all share prices are $0.00 so until then I'll keep placing spare funds I have.

 

[Muschu]

Thanks Belli.
Tough times aren't they? I decided we had too much in the market and too little in cash - So reduced my positions in a number of stocks early last week and the week before. Including ARG
Didn't have many VGS and VAS and only acquired them last year - and have held them, albeit at a loss for now.

 

[Belli]

Thanks Belli.
Tough times aren't they? I decided we had too much in the market and too little in cash - So reduced my positions in a number of stocks early last week and the week before. Including ARG
Didn't have many VGS and VAS and only acquired them last year - and have held them, albeit at a loss for now.

Maybe. I haven't sold anything and keep fully invested apart from having sufficient funds to cover my needs and wants for 12 months. I am simply buying more at a lesser price than they were previously. Could certainly go down further but I've no idea when the bottom will be reached. It's all a guess.

Mind you having cash is unlikely to assist if there is nothing to buy should companies cease producing goods. You can have $1k in your hand and still not be able to buy toilet paper apparently.

Don't follow the prices of my holdings very much. Usually see when I go to purchase more so I'm not aware of the day-to-day or month-to-month fluctuations. Got better things to do.

 

[Belli]

Went in and bought MIR and more VGS. That's it until next month when the ETFs provide distributions at which time I'll reassess the amount of spare funds I can afford.

 

[fiftyeight]

FMG, SYD are two that I like .


Oh yeah, add Apa to my list too, I have owned them since 2001, and enlarged the position in 2008 when they were selling at a 10% dividend yield (madness).

They are a great little gem in my portfolio.

Have you used this time to buy more SYD?

 

[Value Collector]

Have you used this time to buy more SYD?

Yes, but I jumped in a bit early, they went lower after I bought (as usual hahaha)

 

[sptrawler]

The problem ...........… is the rules can and do change and usually you don't have any say in it.

CGT, GST, variation to thresholds, corporate tax rates, elimination of deductions for travel and so on. Just as many, or possibly more, variations outside of super. While the changes are, er, annoying, I'm not fussed about them really as it's part of the investing landscape and we simply have to deal with what comes. Wouldn't deter me from contributing to super if the legislation permitted but it don't. Nor would it surprise me in the least if a future Government decided anyone over 65 yo, or pick some age, and not working should be allowed to have super funds in accumulation phase.

Thanks for re activating the thread Belli, funny how things change in a short period of time.

 

[sptrawler]

Maybe. I haven't sold anything and keep fully invested apart from having sufficient funds to cover my needs and wants for 12 months. I am simply buying more at a lesser price than they were previously. Could certainly go down further but I've no idea when the bottom will be reached. It's all a guess.
Don't follow the prices of my holdings very much. Usually see when I go to purchase more so I'm not aware of the day-to-day or month-to-month fluctuations. Got better things to do.

We are of a same mind, I haven't sold anything and am buying more, are you still sticking to the LIC's and ETF's
Or have you decided to punt on some individual stocks, with the current wreckage.