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Recent Questions & Answers

Global Governments and Economics

I read with concern, an article in the Financial Review and also on a Foxtel Fareed Zakaia GPS show, that since it has now been 10 years since the GFC that the world governments and economies are not likely to be able to come together to work out a plan of attack like they did with the G20 should there be another financial crisis.
There is also a lot of talk about a possible world depression bigger than the biggest the world has seen.

My SMSF is 90% invested in ASX and US listed shares and 10% in Cash. I’m 60 in January and although I believe I will continue to work until at least 67 albeit part time, I’m conflicted as to what to do now, if anything.

I’d appreciate your thoughts.


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LICS Advice

I have two granddaughters who come to visit to get information about shares.
I gave all of the grandchildren 200 AFIC when they were 18, and another 200 when they were 21. Given they don’t have a lot to invest (all of them millennial’s), are there some LICS better than others for that age group? And would LICS be better for them than putting a small amount into one share? Their needs are very different to mine (I am 87 now so I am not a long-term investor).


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Industry Funds

I am a self funded retiree in pension mode and have my money invested in a leading super company with a Member Direct a/c ( 80% shares direct) or D.I.O. With the proposed imputation credits changes by the ALP will this affect Industry Funds as far franking credits if your invested in the Banks,etc.

Jeff Phillips, Switzer member P.S. Did you say that the worse investment that you ever made was with Cambridge Credit? If so I will tell a brief story about it.


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Franking Credits

With the talk from Labor of removing the tax contribution for Franked Dividends to the investor, I wanted to better understand Franking Credits.

Is it possible to request dividends to not be Franked from companies?
It would be good to better understand why companies choose to pay Franking Credits?

I am asking this because I have a SMSF that is in Pension phase. From a tax point of view Franking Credits that potentially could be lost under Labor are of no help to my SMSF. As you know a SMSF in Pension phase is not subject to income tax generally speaking.

 


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Franking Credits

Thank you for your article on 6th September.
I am in pension mode in a smsf and receive franking credits of about $10k refunded. The proposed ALP policy seeks to abolish this which is significant loss of income for me.

Your article provided various lower risk funds with decent yields plus most with franking credits except for VHY.
I also hold a significant amount of hybrids across all major banks including AMP and Macquarie.
How would you view the ALPs Franking credit proposed policy and how should someone with an smsf in pension mode handle this?

Thank you

 


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