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We actually have a mixture and it depends on the client. We are comfortable with the fee for serviced arrangement, but not all clients either want or can afford that. There are plenty of people needing advice without the ability to pay other than through a product. Often those most needing...

There is too much asumption that Planners are all about commission. The industry is about planning. The right structure for Business and Investment - super, trust, partnership, company. How can they help you qualify for benefits - Family tax benefits, maximise Centrelink. Setting up...

Sorry SirJim. In the argy bargy I missed your post, which is certainly deserving of a valid answer. You can receive dividends on the shares to offset the interest payment and how much it offsets will depend on the shares purchased. You can also capitalise the interest (that is not pay...

Thank you BB for your insistence on the last word. It is just that your view lacks balance because it depends on an assumption that shares will never provide a better return than property. That does include tax benefits/penalties on ultimate disposal. For your information share dividends...

I am terribly terribly sorry. When I used the term "specific" I was referring to the investment performance. You suggested that it was typical and I assumed you meant typical of the Property investment performance because you never indicated otherwise. Now you clarify by saying it is...

Post 52 So are you retracting post 52 that your specific example is typical of the property market. So am I to understand that the initial investment was a further $4680 light on for cash flow - meaning a negative of more like $10K, but because the particular market improved significantly...

Check any of the margin lenders. http://anz.com/Documents/AU/Wealth/marginlending/mlaslrptstk.pdf If the link works for you it lists the LVR for every stock. As an example the standard LVR for Commonwealth Bank (CBA) is 75%.

So from all that you are claiming Purchase for $250K Rent of $340 per week Sale after 5 years for $470K AND THAT IS SUPPOSEDLY TYPICAL. Understand that I am not disputing your figures or that it is a real example, but it is certainly not typical. In most markets you would struggle to get...

Please BB do not post blatantly false information. You can easily borrow at least 70% against most Blue Chip shares. The range is also wider than you allude to. At 50% LVR you would cover most stocks in the All Ords

I concur with DeanoT You can go to a direct fund or look for a financial planner that you can get a recommendation for. A good Financial Planner just might be able to help in a few other areas as well.

I am sorry but your example is definitely specific. Suggesting that as the typical return has got a few spruikers in trouble. There have been very high property returns in SPECIFIC markets over the past decade. They are not typical of historical returns. I do agree that there is a better...

Why would it cost $4K a year in excess interest over dividends ? I know it depends on the stocks. The available stocks are much more than your listed 50. If chosen for dividend you can currently get more dividend than interest cost and 6 months ago probably double the interest from dividends...

You are obviously a DIY person, but there are plenty out there who have done significantly better in shares. Costs nothing to keep shares while you always have ongoing cost with property. Mix of the 2 is probably a better (and safer) outcome.

Why would you be cashing out the shares to buy property ? Would not the dividend stream from the shares is likely to be at a point where they could substantially meet the interest costs on a property purchase anyway ? I would think your plan has a better option in utilising the shares as...

Why wait ? How do you know the next 6 months will not be the best 6 months for the next 5 years ? If you are to wait it needs to be based on a market trigger such as a close back above 4800 points whether that is in 6 months or 3 days.

Effectively the manager invests the Investors money through a pool and enhances that with an internal gearing that will vary depending on the manager. If the strategy of the particular manager is to gear at 50% they will borrow an amount equivalent to the investor's money and buy twice the...

managed funds can beat the index but an index fund or a reputable active fund is fine for someone without personal expertise. There is less of an issue with a geared fund than direct shares for a novice investor. There is no need to understand margin lending because the gearing is internal to...

If you really want something that will grow without you needing to worry, you could simply use a managed share fund. You will have professional managers keeping on top of changes that need to be made. It is a higher cost but means you need do no personal work on it and don't need to look for...

You do not need to hide it. It is not taxable. You actually need to keep the record which will prove to the tax office that it is legit and tax free.

Profit from sale of a motor vehicle is NOT taxable. It is a capital gain and specifically exempt. This type of income is only taxable if it is carried on as a business.

While there is a break cost that is substantial, the thing to understand is that you are simply paying the interest you have contracted to pay in advance. Making predictions is always dangerous but the interest rates may have another 1% to fall, so opting out of the fixed rate and paying the...

Well you are entitled to your opinion, but property is not a risk free investment and does have serious liquidity problems. Like everything else you can only be sure on the value after the event. Additionally property is an asset that requires ongoing payments to maintain even when it is...

It is actually pretty difficult to compare real estate with financial planning. Esentially RE people are selling agents. They have a serious conflict of interest in that they purport to be advising the buyer when they are actually the agent of the seller who pays them a commission from the...

Karl It appears you are a financial planner. Your point is correct. The performance of the asset class in any one year is actually irrelevant to the advice. The advice needs to take account of the client circumstances and would include warnings about the probability of negative returns...