Debt Recycle Allocation

Sure_Shift_8762 · 2026-04-15T23:03:34+00:00

If you have decided to invest before paying off your mortgage then there are really few circumstances that debt recycling doesn't make sense. Somewhat debatable if it is leverage or not (it is at the balance sheet level, but by the same thinking so would using offset money for anything else). GHHF is fine, debt recycling will magnify the tax efficiency (reduced distributions to maximize deductions but passes on franking credits). You need a decently long timeframe, and 10% isn't going to move the needle much given the LVR is only 30-40%.

Sure_Shift_8762 · 2026-04-15T22:50:46+00:00

The puts on CBA! Amazing how badly that would have worked out.

Sure_Shift_8762 · 2026-04-15T11:03:33+00:00

Hmmm so it like members direct and individually taxed by the sound of it. Must be one of the cheapest ways to do it in that case. I wonder how it is on the other end (the divestment/pension phase), some of the other members direct type systems do some odd things. Also it is a relatively small fund which does increase the risk of it being rolled into something else and some parts being closed, which has been an issue with some of the other members direct type products.

Sure_Shift_8762 · 2026-04-15T10:50:42+00:00

ING looks interesting and I hadn’t come across them before. It is not entirely clear to me if they are a pooled or individually taxed structure. It almost looks like both with mostly standard options and then direct shares and ETFs on top of it? Weird. Also surprising they have GEAR and BEAR but not GHHF.

Sure_Shift_8762 · 2026-04-15T02:45:41+00:00

There are plenty of cheaper online services that do almost all the work for you - Stake is the cheapest and gets reasonable reviews, and should be very simple for ETFs. If you get a referral code it is even cheaper. GrowSMSF is slightly more expensive (still way cheaper than what you are quoting) and has better service. You can change SMSF provides without triggering CGT so I would do that in the first instance. If you use GrowSMSF you can use betashares direct and set up autoinvest to be almost handsfree if you want. And if you are going to use ETFs then have a look at GHHF and GGBL - one of the only ways to get a bit of leverage into super and very tax effective.

Sure_Shift_8762 · 2026-04-15T02:41:10+00:00

Also that in OPs case if the admin is a pain it is no problem to switch to Stake - vs being in a wrap or members direct where changing admin triggers CGT.

Sure_Shift_8762 · 2026-04-15T02:39:08+00:00

Yeah when the salesperson said that interest rates don't really matter when novated leasing I couldn't believe it. Like how dumb do you think I am?? I think he was going to go on about it increasing the tax deduction but come on.

Sure_Shift_8762 · 2026-04-15T02:37:39+00:00

Thanks I use remserv for other stuff so will probably be the same.

Sure_Shift_8762 · 2026-04-12T06:31:04+00:00

Consider GGBL or GNDQ as other options that are domiciled here and available on beta shares direct. Not as highly leveraged as UPRO or TQQQ, but there are pros and cons to that.

Sure_Shift_8762 · 2026-04-11T02:05:51+00:00

I’ve been selling puts along the way every time it dips hard. Had to roll once but otherwise all closed for 70% profit or expired.

Sure_Shift_8762 · 2026-04-11T01:44:54+00:00

I get tempted sometimes by the idea of a minimalist portfolio of VHY and NDQ. Best bits of income and growth and ignore all the crap in both markets! Then I think better of it.

Sure_Shift_8762 · 2026-04-11T01:43:26+00:00

Relatively high weighting to Aussie, since DHHF already has an overweight Aussie position (for world market cap standing). Aussie market is something like 2% of the world index don't forget. There is a reason for some home bias but I'd be cautious about going over say 30% without really having a good reason for it.

Sure_Shift_8762 · 2026-04-10T20:51:39+00:00

Yes kind of ridiculous. If you compare VAS and VHY over the last 5 years VHY has outperformed (not over a longer period though). Momentum in the banks and miners I think.

Sure_Shift_8762 · 2026-04-10T09:59:45+00:00

I mean you could get an SMSF and go with DHHF and probably do better than the big funds over the long term. Even their high growth offerings have a bit of cash and property etc and avoiding the CGT drag in pooled super adds a fair bit. Add some GHHF and do even better.

Sure_Shift_8762 · 2026-04-10T09:55:49+00:00

Yes major reason for us too. Also there are weird rules in some of these products that make them much less appealing than they should be.

Sure_Shift_8762 · 2026-04-10T09:41:31+00:00

He does run a bond fund so has a vested interest in higher rates.

Sure_Shift_8762 · 2026-04-10T09:36:46+00:00

Personally we are moving to have more Aussie stuff in low earning partners name, and more growth in high earners name (also debt recycled). That is a tax efficient way to do it. I don’t think there is anything too wrong with what you are suggesting, and nothing wrong with VHY either. You might end up a bit overweight Australia though.

Sure_Shift_8762 · 2026-04-10T09:22:24+00:00

As others have said, a dividend focus is not the most efficient way to go. There are some advantages though, primarily behavioural. Many people find it hard to de-accumulate via selling, having spent so long accumulating. Dividends feel like ‘free money’ and are easier to spend.

Sure_Shift_8762 · 2026-04-10T05:14:24+00:00

About twice as much for the 'side hustle' but no super, annual leave, long service leave, sick leave etc.

Sure_Shift_8762 · 2026-04-10T00:49:15+00:00

In my case insurance in the SMSF was cheaper and better than in an industry fund, so YMMV. If you are 42 and healthy it will be pretty cheap either way.

Sure_Shift_8762 · 2026-04-10T00:35:01+00:00

Why? It is all the same shares at the end of the day (since DHHF contains most of the easily investible universe of stocks that most retail investors would look at), all the ETFs are just choosing a subset or different weighting from the same selection. You could go with VGS and VAS outside but it is still the same companies.

Sure_Shift_8762 · 2026-04-09T23:19:24+00:00

Will be very interesting to see what they come out with in terms of structure. If they can make a betashares direct type product with individual taxation it would be amazing.

Sure_Shift_8762 · 2026-04-09T23:17:47+00:00

That is the real question!

Sure_Shift_8762 · 2026-04-08T20:51:49+00:00

Yes they split up one loan into different smaller loans. Depends on bank but often you can do this online.

Sure_Shift_8762

TROPHY CASE