Can also protect the portfolio from the impact of said offspring's future divorce...
Cheers,
Shadow.
Thanks, so this bit above is referring to something like a 'blood line trust'?
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Can also protect the portfolio from the impact of said offspring's future divorce...
Cheers,
Shadow.
Perhaps some of us including myself at times focus too much on tax minimisation via negative gearing and the use of more complex structures and in doing so create all sorts of problems (not to mention stress) for ourselves.
I think so too. Once your portfolio gets to a certain size, you're going to need other income sources like dividends and so on anyway. You're less likely to be running a big tax loss. I mean, running a 3% tax loss on a $300k portfolio is one thing, but when you debt gets into 7 figures, just how much negative gearing could you afford?
Julia, Let's say that we do other things, or both of us are in profession that can be considered risky hence asset protection is important. What do you suggest ?
Shadow, have you experienced a recession? If so, how did that go for you and your LOE plans?
Alex
I found HDT is still at its infancy. I don't recommend other to venture into this at the moment. Unfortunately I was a bit p#$#@!@# off because I was promised with this and that but in reality it is not. I am seeking an opinion of a property / trust lawyer soon. I will let you guy know what is the verdict.
Too young for that... there could be one on the way though!
That is what the buffer is for... to ride out the recession. Obviously using ALL of your capital growth to live on would be madness. Anyway I'm nowhere near the stage where I can retire or LOE yet. Give me 10-12 more years at the day job. But when I get there, I would always make sure I had at least 3 years of buffer in my Lines of Credit to cope with low growth periods.
Cheers,
Shadow.
Ah, my mistake. You just sounded you knew what you were talking about living off equity and HDTs so I figured you're already living it, so to speak.
Alex
Personally, it's the moving target thing I'm most worried about. HDTs are supposed to allow both negative gearing and discretionary trust-style asset protection. This is no longer the case. The issue isn't whether I need both, but that things are changing.
Ask yourself, do you really want to use a structure where fundamental things are still changing? With buying in my own name and a discretionary trust, I know what I'm getting into.
Alex
If I had an employee giving advice like Shadow, I'd sack them.
The issues relating to HDTs are not settled and people need to look at these things with their critical thinking skills turned on.
Shadow is a client of Chan and Naylor. Shadow is not an accountant.
The 'naysayers' are actual accountants with years of practice and experience with cases, rulings and tax law to explain their position.
Shadow is reading press releases and repeats positions like a broken record player ad nauseam and will continue to do so.
You can say things a hundred times and that will still not make them true.
The arguments for the use of HDTs keep changing. First it was that you can negative gear, then PBR 66298 came out. Then it was you can redeem at cost, and that just changed. This is more like guessing than a proper position founded in solid tax law.
There are two contradictory private rulings on HDTs, and that should be enough to freak people out.
People buying HDTs deserve that evidence and strangely there is none when the ability to obtain evidence is right there.
Go ahead and paste your rebuttals and attacks.
People buying HDTs deserve that evidence and strangely there is none when the ability to obtain evidence is right there.
Ha...this old chestnut is getting roasted again.
I gotta say I agree with Mry on this.
... Now if we really want to get the discussion interesting let's discuss the theory of higher cosmic intelligence...