why wouldnt i, page-17

Great comments everyone.

Rich08
I guess my view point revolves around - strategy & your own personal situation - whether to try and play this little monster to make a quick buck(trade, sell and accumulate in high's & low's) or get set and put in bottom draw for the long term play as you need the post tax cash dollars for personal dreams.

I will give you my strategy based on my personal situation.

I live in WA where property is unaffordable and I was born 5years too late to be able to buy an affordable property ie where home repayments are less than 30% of your wage. For me, I am banking on UMC being one of the best Fe juniors to help me achieve my goal that every Australian wants - a first home, some bricks and mortar, by selling out $5+ LOL

Accordingly, tax for me is the biggest issue. So my strategy is hold for 12months otherwise i am pissing my money into the wind of either 46.5% personal marginal rates OR even if i bought in a trust and wish to distribute to a company and capping at 30% tax, running the risk of Division 7A (private loans) or to get the cash out, having to pay top up of 16.5%. There is too much risk for me to try and trade the stock and get it right. as joelbaby says, hindsite is perfect science. This is why I only bought heads rather than oppies as I knew that for a t/o to occur, my purchase date would be reset AND i wouldnt have the cash to convert as I don't have any equity to use to be able to afford conversion (if this makes sense - "afford what you can afford")

So my risk is that 80% of my costbase portfolio is in UMC and has been for over 12months. I knew that asset is the key and for any doubters, nearology for this baby is going to pay off for us all. If it didn't I wouldnt lose too much as I am young and able to rebuild after a loss.

Now lets compare this startegy if I was 60 years old. If I was 60, I'd already have a home I own, kids have moved out and I have accumulated my wealth over time & I probably had property worth heaps now coz of the housing boom. So for me, I'd have bought the stock in a superfund and a family trust. Superfund for longterm hold note 10% tax if held greater than 12months. Note, over 60y/o of age i could convert the fund into pension mode, get TAX FREE earnings + take the money out of the fund TAX FREE. For the trust, play around and trade to cap at 30% by distributing to a company. The company would then pay me dividends when i have taxable income thats less than the 30% tax bracket. This strategy doesnt suit me as I have decades to get to 60 and I need access to the money to be able to buy a first home.

So as you can see I don't think there is an answer i can give you Rich08 because I don't know your personal situation, so i leave you on this to think about -"remember what your intitial strategy was, stick to it and think if you didn't come across this gem then you wouldn't have the chance of making any money (glass half full mind set) - hold the dream/long term goal and never waiver from it, coz if you take your eyes off the ball, then there is a fair chance you will get cleaned up!"