What does it mean to be positively or negatively geared with margin lending?
What does it mean to be positively or negatively geared with margin lending, and what circumstances would you use each? Response: An investor has a positively geared margin loan when the dividends payments exceed the interest costs. In such a case the income stream from the investment is (more than) self-funding. If the investor is…
Should I take out a fixed or variable margin loan?
I’m not sure whether I should take out a fixed or variable rate margin loan. What are the advantages and disadvantages of each, and what type of investor do they suit? Your choice of interest rate on a margin loan (variable or fixed) depends on your financial and tax circumstances, your opinion as to the…
I am tossing up between a DIY super fund or opening a wrap account
I would like more control over my superannuation savings and am considering starting either a self-managed super fund or doing it via a super wrap account such as that offered by [ABC] Investment Management. I found out the fees for a [ABC] Direct Wrap and calculated it would be an average of 0.57% pa of…
Do you pay tax when rolling shares into a self managed super fund?
I have $100,000 worth of shares in my portfolio and I would like to roll it over into my self managed super fund. Will I pay tax on the rollover, and if so how much? When I have it in my self managed fund and I want to trade on any of these stocks, will…
Should I sell my home, buy a cheaper one, and invest the remaining funds for retirement?
We have 5 1/4 acres of residential land 20km south of Brisbane with an 7-year old home build by us on it. We have owned it for 10 years and our cost is around $300,000. In October last year we were offered $1.5 million by a stgeloper who knocked on our door, which we did…
Should I roll my SMSF into an allocated pension?
I have a self managed super fund, I will be of pension age in 7 months. I would like to roll my super over into an allocated pension and still self managed it if possible. I would like to know the pros and cons of this move, would the fees cost about the same as…
Should I buy a warrant on the primary or secondary market?
What is the difference between buying a warrant from a warrant issuer and buying it on the ASX? What are the pros and cons of each? Response: Buying a warrant from a warrant issuer is often referred to as purchasing through the primary market. Buying a warrant on the ASX is referred to as a…
Can you please explain how instalment warrants are priced?
A number of factors are taken into account when determining the price of an instalment warrant. Not only are there pricing components to consider, but influences affecting price movements also need to be factored in. Let’s look at the four components which make up the price of an instalment: 1. Capital component this is equal…
Why buy an instalment warrant instead of a share?
What are the advantages and disadvantages of buying an Instalment Warrant rather than just buying a share? Response: Instalment warrants are listed securities which trade on the ASX and each instalment warrant evidences a beneficial interest in an underlying security. Instalment warrants enable investors to acquire the underlying share by paying “instalments” over time. An…
What are the pros and cons of instalment warrants
Instalment Warrants are listed securities which trade on the ASX and each Instalment Warrant evidences a beneficial interest in an underlying security. Instalment Warrants enable investors to acquire the underlying share by paying “instalments” over time. An amount is payable up front to acquire the warrant and a final optional instalment is payable if an…
