"A word or warning on the "Tax-deferred" distributions."
Deferred tax is due on trusts if we sell them. Why sell trust shares while the yield is 10% tax-deferred. We keep them and use the income to buy more. By the time we sell them (if ever) we can pay the tax with fluffy inflation-debauched Dollars or leave the shares to the kids and they can pay the tax with even more inflation-debauced AUDs All the while we got Heavy Dollars to pay bills with and have a good life.
It's the same story with our real estate assets. We bought them many moons ago so while what paid for them remains static, their value to us and the rents we get rise in line with inflation. Selling them would incur Cap Gain taxes. So we never sell assets that give us ever-incressing rents. We'll leave our rental assets to our kids.
Bottom Line: We are very long-term investors in Aussie property trusts and rental places for their Yield. We never speculate. It's too risky. Yield and hard work made us millionaires.
Why mess with a winning formula when it's enabled us to have lunch in Paris:
