Investment and tax

[rooky]

Hi All,

Excuse me for putting this thread in this forum if you think its not right one. Could not find proper forum category as this topic covers both - investment(not only property) but tax also.

Situation :

A person wish to invest 30k every year for next 10 years. This 30k amount is linkex to inflation so first year 30k, second year 30.9 k(for 3% inflation) and so on. He is open to invest into anything including property. He wants flexibility to liquidate his investment any time and get cash during this 10 years if need be. Does not need to be immediate cashout, can wait for 2 to 4 months in case its required. At the end of 10 years, he will liquidate his investment. Person does not know what his position will be income wise at end of 10 years.

Questions:

1. Which investment is better - property trusts, stocks, index funds, bonds etc.
2. Through which entity he should invest so that it becomes tax efficient at time of cashout ?

 

[Terry_w]

Questions:

1. Which investment is better - property trusts, stocks, index funds, bonds etc.
2. Through which entity he should invest so that it becomes tax efficient at time of cashout ?

1, You will need a crystal ball. Generally shares have performed slightly better than property. But will there be gearing? This will change the performance.

2. This is impossible to answer on the limited facts

 

[Paul@PFI]

My answer to #2 would be super if your age permits tax free earnings and preservation for some/much of the ten years isn't a concern. But many factors need to be considered...potentially even a tax deduction for your savings ??

#1 is a crystal ball. Past returns wont be replicated. A portfolio that encompasses a diversified mix may be the answer.

What are you seeing ?
What is your risk profile ?

This is all financial advice. Licensed advice requires knowledge of the client and their circumstances.