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Distributions

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A guide to tax-deferred distributions

At times, income from investment funds may include a component of ‘tax-deferred distributions’. Due to their complexity, these distributions aren't widely understood, so here's an overview of how they actually work.

Why have bond fund distributions been shrinking?

The momentous rise in government bond yields since last year has had one unexpected effect: shrinking income distributions. This may be surprising given bond managers have been able to reinvest at progressively higher yields.

Two of the best-kept secrets for the EOFY

Chris Cuffe reminds us about a charitable-giving structure allowing a full tax deduction now even if the donation is spread over future years. Elsewhere, make sure you are not converting capital to taxable income.

Warning about timing of investments in ETFs and trusts

Investing in ETFs and unit trusts just before a distribution may see a portion of your capital returned to you in the form of taxable income, which may be a poor outcome for your returns.

Warning about investing in unit trusts in June

Investing in unit trusts just before a distribution is paid may see a portion of your capital returned to you in the form of taxable income, which will be a poor outcome for your returns.

How 'bucket companies' work in family trusts

Some of our readers have said family trusts have little merit because of the tight limits on the amount that can be distributed to children paying low tax rates. But the use of bucket companies drives many of the structures.

ETFs a boon, but watch the tax treatment

ETFs are popular investment vehicles but can be complex for tax returns. The ATO classifies them as trusts, and investors, administrators and accountants need to know the details.

Warning about investing in unit trusts in June

Investing in unit trusts just before a distribution is paid may see a portion of your capital returned to you in the form of taxable income, which will be a poor outcome for your returns.

Watch your neighbour in managed funds

The actions of other investors in a managed fund can have a material impact on individuals in the fund. How much do you know about the realised and unrealised capital gains, franking credits or distributions of your fund?

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How much do you need to retire comfortably?

Two commonly asked questions are: 'How much do I need to retire' and 'How much can I afford to spend in retirement'? This is a guide to help you come up with your own numbers to suit your goals and needs.

Meg on SMSFs: Clearing up confusion on the $3 million super tax

There seems to be more confusion than clarity about the mechanics of how the new $3 million super tax is supposed to work. Here is an attempt to answer some of the questions from my previous work on the issue. 

The secrets of Australia’s Berkshire Hathaway

Washington H. Soul Pattinson is an ASX top 50 stock with one of the best investment track records this country has seen. Yet, most Australians haven’t heard of it, and the company seems to prefer it that way.

How long will you live?

We are often quoted life expectancy at birth but what matters most is how long we should live as we grow older. It is surprising how short this can be for people born last century, so make the most of it.

Australian housing is twice as expensive as the US

A new report suggests Australian housing is twice as expensive as that of the US and UK on a price-to-income basis. It also reveals that it’s cheaper to live in New York than most of our capital cities.

Welcome to Firstlinks Edition 566 with weekend update

Here are 10 rules for staying happy and sharp as we age, including socialise a lot, never retire, learn a demanding skill, practice gratitude, play video games (specific ones), and be sure to reminisce.

  • 27 June 2024

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