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Recent Questions & Answers

Corporate bonds

Hi Team

I’m keen to add corporate bonds to my portfolio and would your appreciate advice on the different ways to do it.

There aren’t many listed bonds and XTBs don’t appeal. As for the over the counter market which seems to have more choice, I looked at FIIG but their minimum portfolio size is 250k, which excludes me at this stage.

The only other company I can find offering the same sort of service is Australian Bond Exchange. Can you offer an opinion there please? Are there other options?

Thanks


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Why has the share price fallen?

Dear Paul,
Could you please give me your view on the LIC, DJW ? The share price has fallen substantially in recent times, yet its dividend yield of 20c per annum has been maintained for many years, including during the GFC. It uses options to enhance its yield. In a recent commentary, it made the point that market volatility should enhance its already-high yield. Am I missing something here, given that the share price is at a 12 month low ? I am thinking of buying a holding in DJW.

 


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TTR pension

Hi Paul,
My wife is on a TTR (64 Y/O) and I am on an ABP (66 Y/O) and will likely need an actuary\’s report for 2018. Do you know whether an actuary takes into account deductible expenses for my wife\’s TTR, which would reduce her assessable non-exempt income.
Regards,


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Clarifications on Labor’s Proposed Changes

Late last week Labor announced adjustments to their proposed policy on denying dividend imputations to people paying no income tax. They announced they would now pay franking credits to people who were pensioners prior to an arbitrary date in March.

1)  Am I correct this only refers to aged pensioners and doesn’t include self funded retirees who draw no government pension?

2) I cannot see Labor losing the next election. Is there any organised lobby on behalf of self funded retirees given the government has not prosecuted this argument?

 


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