Letters of the Week

A property plan with a twist. A clear guide to personal investing, and where to find fixed interest’s high returns.

Property plan

I liked Robert Gottliebsen's article suggesting a SMSF borrows to buy real estate while the salary earner rents (see A long-term property play). I have a twist. We have an SMSF and adult children about to (FINALLY) graduate and start earning an income. My twist on Robert's plan is to share equity in the investment property between our SMSF and our children's fund. Their fund borrows to negatively gear, and ours fully funds it to enjoy rental income from our 50% share. Then when we finally depart this world we leave our share to the children. Maybe even get them into our super fund?

– K Patterson

Clear guide

For renewing my subscription (which I hope to be able to do until I lose my marbles and don't care about investing), I received Alan's Guide to Personal Investing. Wow! I'm halfway through and I regard this book as the finance equivalent of The Tibetan Book of Living and Dying. No clearer guide have I ever seen to the machinations of investing one's hard-earned dollars. Congratulations to Alan and Barbara Drury! Guess what my two grown-up daughters are getting for their birthdays? Wonderful work, Eureka Report!

L Marsh

Editor’s response: Thanks for your letter, that’s excellent to hear! You might be interested to know that Alan’s book has been so popular it’s now on to its first reprint.

Tapping high interest

Elizabeth Moran's article Where to get 6.5% or better prompted me to enquire how one may go about investing in the products she noted. Is it necessary to go through a broker?

– P Watson

Editor’s response: Thanks for your letter. It is necessary to go through a broker, because while there are some bonds available on the ASX, most (including the ones Elizabeth talks about) are only available via brokers. Most full-service brokers offer fixed interest products, or you could choose a specialist broker such as FIIG.

To read this week’s letters, click here.

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