No argument from me. I like your strategy.
Absolutely correct and would boost ones net return to 7.04% / 0.97 = 7.26% before brokerage costs.
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Thanks Beagle. But Im not bragging. Like any real investor I've made big mistakes and I still live with some of these today but I keep these to remind me of the consequences of rash decisions and herd followment (new word) as a younger investor.
I follow these pages to question my own thinking and learn from others. I'm a better investor for it.
Still no Merc tho ;)..I'm still waiting on the business case...
Yes...the age old conundrum. While its great to get an awesome return on one's money one is best not to lose sight of the fact that you can't take your money with you when you die.
Just for you mate, but maybe for me too ;) https://www.youtube.com/watch?v=WKrNCVSdefA
Yeah I know the Egyptians tried but they all got robbed, later.
I lasted 12 seconds on the vid sorry ;)
Look I'll tell you story. When I was in my early 20s my dear ole dad who was an unqualified accountant gave me a piece of wisdom that I've never forgotten.
One day I had my head under the bonnet of some piece of British automotive ditritis (insert any name here..there were many) that we all drove in the 70s fixing yet another problem. My old man who was helping me said to me at the peak of my frustration " well son there are two types of people in life". I replied "who are they dad?". He took a long drag on his pipe, pausing for effect as was his style, and eventually replied..
" rich pedestrians...and poor motorists".
My course of my life changed that day..
Question from a comment that arose on the MFT thread about KFL distributions.
If KFL includes capital gain as part of a dividend payment doesn't it need to withhold tax on that distribution? Or is it a non-taxable part of the total distribution as implied in the quote? Just would like confirmation of how they make up their distributions.Quote:
PS : Also capital gains for funds are clearly tax exempt while for individuals its taxable if trading . So KFL can pass on capital returns tax free as part of quarterly dividends
Its dividend has two parts ...Excluded Income with not any imputation credits attached ...this is capital returns part ...Not Taxable as per note written on dividend advise
Second part is dividend which has imputation credits attached @ 28% which can be included in IR3 if it suits u or this also left out if u are an individual NZ resident as per note on the dividend advise
Hope that clarifies