Bendigo says:
"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:
Bendigo says: "A word or warning on the "Tax-deferred"...
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