After tax 6% pa ROE

[Francesco]

I heard that there is an investment strategy using SMSF that is quite feasible for the age group 55-75 under the following circumstances.

Any non concessionary contribution into the SMSF that is added into a pension account earns income that is not taxed in SMSF. The pension financed by this contribution is not taxed in the hands of the receiver. This seems quite promising as fixed interest rates on deposits can earn just under 6% per annum. That means after-tax ROE of 6%.

Let's say the person has the following circumstances:

1) receives indexable employer pension, which precludes any part pension from Centrelink
2) still having a property portfolio, neutral to positive cashflow (and some still growing in equity in the last two years)
3) SANF provisions in place with LOC, fixed interest loans and funds in SMSF

Kudos to anyone who can outline a feasible investment strategy to yield better than 6% per annum ROE appropriate for someone in this age group.

 

[Belbo]

I heard that there is an investment strategy using SMSF that is quite feasible for the age group 55-75 under the following circumstances.

Any non concessionary contribution into the SMSF that is added into a pension account earns income that is not taxed in SMSF. The pension financed by this contribution is not taxed in the hands of the receiver. This seems quite promising as fixed interest rates on deposits can earn just under 6% per annum. That means after-tax ROE of 6%.

Let's say the person has the following circumstances:

1) receives indexable employer pension, which precludes any part pension from Centrelink
2) still having a property portfolio, neutral to positive cashflow (and some still growing in equity in the last two years)
3) SANF provisions in place with LOC, fixed interest loans and funds in SMSF

Kudos to anyone who can outline a feasible investment strategy to yield better than 6% per annum ROE appropriate for someone in this age group.

Way over my head, Francesco, but retiring on any portion of a public pension seems to me hardly ambitious enough for an up and coming property investor like you.

 

[turk]

Way over my head, Francesco, but retiring on any portion of a public pension seems to me hardly ambitious enough for an up and coming property investor like you.

Heho Tex

Francesco is referring to a private pension not a Government pension

 

[Belbo]

Heho Tex

Francesco is referring to a private pension not a Government pension

Well, there you go then.

 

[Francesco]

Well, there you go then.

Yay, sweet situation!

Something of topic - another example of comical economic analysis from Marx under your signature - linking increasing rent directly with poverty, ie the premise that landlords are automatically unconscionable wealthy bxxxxxxx sitting on their bums easily earning the unjustifiable rent increase. That philosophy deserves to be thrashed by the communist countries themselves.

 

[Belbo]

Yay, sweet situation!

Something of topic - another example of comical economic analysis from Marx under your signature - linking increasing rent directly with poverty, ie the premise that landlords are automatically unconscionable wealthy bxxxxxxx sitting on their bums easily earning the unjustifiable rent increase. That philosophy deserves to be thrashed by the communist countries themselves.

You do get that it's quoted ironically, right?

 

[Francesco]

You do get that it's quoted ironically, right?

You are alright, mate. I am having a dig at a dead ideologist who has done mischief to civilisation.