None of the shares named above offer dividend yield of 8% check
www.tradingroom.com.au except perhaps TLS and that is also due to recent drop in share price. Try another 3, further some of them do not offer full franking (please no one replies to this issues - till they have checked the Div yields).
Further, Dividend yields are in high 5's because in calculations, we consider past 12 months dividends with the current price = which means that future dividends are not assured or could be lower.
There are no contradictions.....Just the plans suggested are defective.. or are we plucking things from the air....
We are also waiting for Steve to tell us how "by never selling" he is going to save CGT - i think the idea is to hold IP's for future generations who will keep the equity for the family for ever (how is that going to happen, only he knows) and divide the rent among grand children and their current and ex-spouses etc -I do not know how that game plan work?
BTW the trustees of testamentary trust can, if all beneficiaries agree can dilute the trust, hence the idea "to never sell", may or may not work.
By ignoring CGT altogether and assuming that we cannot access super before preservation age (when we can), is naive.
Those who want to borrow more than 70% in super - should read below -
There are now products being offered by non-banks who will lend up to 80% for commercial and 90% for residential for SMSF borrowing. Think carefully, we are missing out on a structure which offers no tax on income and no CGT on sale (if sold in pension phase).
"Investors and SMSF will have the option of 2 exposures, Berkshire Hathaway (Warren Buffett’s investment company) or S&P ASX 200.
The Berkshire Hathaway investment is the only one of its kind in Australia providing your clients with a unique opportunity to obtain exposure to one of the great investment managers of our time, Warren Buffett.
Both exposures provide investors with 100% borrowing through a non recourse loan (suitable for SMSF) @ 4.95% p.a. fixed for three years, with 100% capital protection".
Matt Davis Senior Investment Manager
Wholesale and Structured Investments
JB Global