Negative Gearing in simple terms
- Thread starter piNoob
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I agree that this is indeed one choice, and there are many different ways to get ahead. I cannot imagine hubby choosing to buy cheapie IPs that were positive geared, not because it is not a good idea, but it was not something we even considered 30 years ago. IPs were never our main earner, but always something simmering on the side, a back-up plan if you like.
Hubby enjoyed his job for many years but when it became a PITA for the last two years or so, he had the option of pulling the pin. I'm just saying that we have always been negatively geared to some extent and it has served us well.
Perhaps if we were starting out again, we would try a different path?
I am not sure Nathan is really retired and do not mind being corrected. Maybe running around daily looking after his CF+ portfolio? This would be a very active retirement, instead of working for someone to working almost full time on his portfolio plus keeping up with serviceability through talks, etc?
Anyway I wouldn't want to exchange my situation with his. I wake up when I want and plan my holidays with friends, and do things I like. Not much worry there but each to his own.
I am not sure Nathan is really retired and do not mind being corrected. Maybe running around daily looking after his CF+ portfolio? This would be a very active retirement, instead of working for someone to working almost full time on his portfolio plus keeping up with serviceability through talks, etc?
Anyway I wouldn't want to exchange my situation with his. I wake up when I want and plan my holidays with friends, and do things I like. Not much worry there but each to his own.
Hi Francesco,
I employ people to do all my book keeping and data entry, along with PM's, so I just get emails asking me the odd thing or two
There can be headaches, however I would spend only about 2 hours a month on my portfolio in any way shape or form.
ps, Now days I don't even open the mail, I just give it to my book keeper in bags to be opened and sorted on a weekly basis
Twodogs, I think you have a degree in financial management when you see 'negative gearing' as an example of the upfront negative cashflows in an overall perspective of some high capital investments. Try telling to the diehards against upfront cashflows and led by an 'investment guru' DB. The guru calls it 'stupid' and others including some disciples call it 'gambling'.
This debate has been aired before to justify ones investment journey.
Sorry, but you lost me there. I am not sure which side of the fence you stand with ng, or like me and just sit on the fence.
Ng has its place, been there done that, don't need or want any more. Of course there are a few gurus and slick types out willing to promote methods that are more tax than investment related, even to their own advantage, but the basic principle still has its merits and application. If you have half a brain, and 99% of people of this forum are quite switched on, work out it suits your needs.
Hi Francesco,
I employ people to do all my book keeping and data entry, along with PM's, so I just get emails asking me the odd thing or two
There can be headaches, however I would spend only about 2 hours a month on my portfolio in any way shape or form.
ps, Now days I don't even open the mail, I just give it to my book keeper in bags to be opened and sorted on a weekly basis
Hi Nathan, no disrespect but that is a great achievement. However, I have come across all sorts of discrepanciesy from PMs and just doing my tax returns takes a few days a year, but I do most of the paperwork myself. Well done again.
I agree NG has its place especially for high income earners and in the early years of investments. NG situations eventually moves to CF+ and in many cases CG as well. I also agree with what Michael said. I just thought that it is easier for people who have done financial studies to accept that some investments do not necessarily start recouping from year 1.