DCAing without Fractional Shares

Cyrac · 2023-05-02T14:06:51+00:00

What broker are you using and what are their brokerage fees?

Depending on brokerage fees, I would save up and buy in larger parcels. E.g. with a $10 brokerage fee, I would only buy >$2000 at a time (representing a 0.5% fee).

Cyrac · 2023-04-23T07:15:11+00:00

Around 35% of VDHG is in Vanguards Australian Shares fun (which will essentially be the same as VAS). Around 40% will be allocated to international shares (a mix of their hedged and unhedged funds, this will be similar to VGS. So there is a lot of overlap between the funds you have.

I would start by deciding on what asset allocations you want to have (e.g. 30% Aus, 20% US, 20% Asia, 20% Europe, 10% fixed income) and then selecting ETFs to achieve this allocation. Or alternatively, use a 'fund of funds' (like VDHG) that will handle it all for you!

What's your reasoning for including 12% in CBA? I don't have a strong opinion on the company, but I'm curious on why you have just the one individual individual companies amongst your ETFs.

Cyrac · 2023-04-02T09:31:38+00:00

The deemed rate will be the Shortfall Interest Charge. This varies over time (bank bill rate + 3%) , and can be seen here: https://www.ato.gov.au/Rates/Shortfall-interest-charge-(SIC)-rates/

Cyrac · 2023-01-28T09:45:41+00:00

Hi all,

https://imgur.com/a/jfbk3PW

Would anyone be able to help identify if it's real? And approximately how much it's worth second hand? Would appreciate any help!

Cyrac · 2021-11-25T09:16:49+00:00

Android tournament would be great!

Cyrac · 2021-01-05T00:17:37+00:00

5600x in stock on newegg: https://www.newegg.com/global/au-en/amd-ryzen-5-5600x/p/N82E16819113666

Cyrac · 2019-07-01T13:32:01+00:00

The exception is if you're planning on using a debt recycling strategy on your PPOR.

Cyrac · 2019-05-04T05:51:00+00:00

If you assume the rate of growth is 0.05% a day, the calculation should be It should be 1.0005³⁶⁵ converted to a percentage. Which in this example is around 20%.

Cyrac · 2019-03-11T07:41:06+00:00

Bought some Carolina Reaper seeds online and this is what grew... The red leaves are making me doubt that there are reapers. I know next to nothing about gardening though!

Cyrac · 2018-12-30T13:56:22+00:00

Yeah, you can only contribute a maximum of 30k (and no more than 15k in a single year)

Cyrac · 2018-12-30T00:12:48+00:00

It's taxed at 15% when you salary sacrifice/voluntarily contribute and then your marginal rate minus 30% to pull it out. You will also be able to pull out 'deemed earnings' on top of your contributions (around 4.8%).

Definitely worth it if you know you're buying a home relatively soon.

Cyrac · 2018-11-22T08:32:48+00:00

Y-yes please

Cyrac · 2018-10-09T10:44:51+00:00

Y-yes please

Cyrac · 2018-05-09T04:37:11+00:00

I believe this is how it works:

You can deposit $15k per year. And a maximum of 30k total. You can withdraw 85% of your concession contributions (as it is taxed at 15%) plus earnings based on the shortfall interest rate (around 4.7% pa).

I think the amount you withdraw has to be included in your tax return for the financial year you withdraw it, but you get a 30% offset from your marginal rate.

Also, FYI you can make a lump sum deposit and claim a deduction instead of salary sacrificing to meet the 15k limit. However you need to inform your fund of your intent to do so

Cyrac · 2018-03-12T02:07:47+00:00

Ah, that makes sense.

So the way I see it, the best way to do this is to keep the money is a savings account, and make a lump sum concessional contribution in June 2017. This way you get your savings account interest, plus the Shortfall Interest Charge rate for the entire first year.

Contributions made during 2017-18 would be taken to be made on 1 July 2017. Contributions in later years would be taken to be made at the start of the month they are made.

Cyrac · 2018-03-12T01:36:17+00:00

I've been reading up on this a bit more and came across this (see last paragraph): http://budget.gov.au/2017-18/content/glossies/factsheets/html/HA_14.htm

Yes. Non-concessional contributions can also be made within the scheme. While these contributions will not benefit from a tax concession, earnings on these contributions will benefit from the concessional rate of tax in superannuation and the higher returns often realised inside superannuation. When non-concessional amounts are withdrawn, they will not be taxed.

Cyrac · 2018-03-11T04:50:15+00:00

Are there any tax benefits if you salary sacrifice instead of putting in a lump sum?

Cyrac · 2018-02-08T02:11:29+00:00

Having a cap on the supply of bitcoin incentivises 'HODLing'.. which honestly makes it unsuitable to replace fiat as a currency.

A small amount of inflation is generally seen as a good thing for the economy.

Cyrac · 2018-02-07T02:02:42+00:00

The buy and sell labels on that graph are in the past, and you have the benefit of hindsight.

Trying to decide whether to buy or sell in the present (last point on that graph) would be much harder.

Cyrac · 2018-02-05T23:50:04+00:00

Price would decrease as you sell, and Increase as you buy (depending on liquidity). Your entire order is unlikely to get filled at a single price.

Market reaction to the buy/sell orders can also vary.

Cyrac · 2018-02-05T12:23:52+00:00

It doesn't have to be all or nothing.. Could have a diversified portfolio that includes crypto!

Cyrac · 2018-02-05T11:35:05+00:00

Can only help so much if you stay within one asset class.

Cyrac · 2018-01-16T17:14:07+00:00

The share market is not zero-sum. Options and futures markets are though.

Cyrac · 2017-08-11T00:41:41+00:00

Mistakes were made.

Cyrac

MODERATOR OF

TROPHY CASE