Turning over rocks

He who turns over the most rocks wins. Private investor.

[Turning over rocks @RocksOver]

Just quit my job to become a full time private investor. Reached escape velocity in net wealth finally in my mid-40s. That’s it for the corporate life for me. For anyone interested, a bit about my journey…

[Turning over rocks @RocksOver]

@AltayCapital I haven’t checked. But I’d expect them to renew it in not too long. They’re reliably done so in the past.

[Turning over rocks @RocksOver]

@DerekFranc90653 Foreign investors get to buy small cap Aussie shares on the cheap that Australians can no longer own due to these stupid tax laws too.

[Turning over rocks @RocksOver]

@roberthorrocks @c_s_wallace Yep. This and more relaxed lending standards at banks pretty much explain the whole thing.

[Respeculator @respeculator]

Pretty much my thoughts… when the default reaction to anyone making a profit or having a crack at making a profit (be it property investors, oil and gas / coal industry, business owners) is to tax them harder so the unproductive part of the economy can free load harder… we are in all kinds of a shit sandwich 💩 🥪 ..

[Turning over rocks @RocksOver]

@TAFEdefender There are too many flaws to list in this piece. For example, citing ATO data on how many under-35s realise capital gains is highly misleading. Young Aussies are still in accumulation phase. Typically don’t sell until they are older. Doesn’t mean they don’t own shares.

[Turning over rocks @RocksOver]

@CmonMick @MarkoMatvikov @LambDownUnder Good question! They’re not cutting spending. They’re simply saying spending will only increase more slowly than the insane pace that they previously forecast. Does this help you understand?

[Turning over rocks @RocksOver]

@cjoye What about shares though? I worry that they are going to make an exemption for startups and small business (which they should) but leave other asset classes out to dry.

[Turning over rocks @RocksOver]

@DrCameronMurray @anthonyhf The 50% discount was a reasonable compromise. It is absolutely inconceivable to me that Treasury wouldn’t have done enough modeling to foresee some of these issues. What a mess.

[Turning over rocks @RocksOver]

@BernardKeane @DavidPocock This is a completely meaningless statistic. The gas companies also pay corporate income tax (second largest taxpayer in Australia) and state royalties.

[Turning over rocks @RocksOver]

@OwenRask @TheAusInstitute Exactly. They have a certain ideology and then find “facts” to support that. The pursuit of truth has nothing to do with it.

[Turning over rocks @RocksOver]

@JasonGFalinski @parnellpalme This is similar to a lot of their rhetoric on gas taxes. I haven’t looked into the housing stuff but on gas they are completely divorced from the facts.

[Turning over rocks @RocksOver]

@KurtLass1 This CGT stat is completely meaningless. Capital gains are accrued over multiple years and often realised in a single year. A single year of high income does not make one “wealthy.”

[Turning over rocks @RocksOver]

@TheRealDavey2 It’s not just that. If you’re mid or lower income and register a one-off capital gain on a house or selling shares you might temporarily jump into that top 10% for one tax paying year. And then fall back down. So the statistic is highly misleading.

[Turning over rocks @RocksOver]

No, the tax drag is huge if you have any kind of turnover (most investors). Take example of a value strategy that turns over shares every 3 years. 12% annual returns for 20 years; 2.5% inflation. Start with $100k. Under current system you have $604k at the end. Under new system it’s $443k. Tax drag takes 60% of total gain.

[Turning over rocks @RocksOver]

@jamesmizell1225 @undefinedhandle @profholden Correct, the govt will take an additional 25%. How do you think that will change the willingness to take on risk?

[Turning over rocks @RocksOver]

Yes, and what’s the result? It massively changes the economics of long term investing. Equities are risky. Now if I’m successful the government takes up to half the upside. If I’m not and lose all my money the downside is mostly mine. I wouldn’t be surprised if this pushed people into more speculation and short term trading.

[Turning over rocks @RocksOver]

@TMFScottP @g_zilla_xo I am asking about the impact on the type of person who might read your book. A young aspirational Australian investing in shares and looking to compound their capital, save up for a house etc.

[Turning over rocks @RocksOver]

@g_zilla_xo @TMFScottP Absolutely. The biggest advantage young investors have is time and the ability to compound capital. I wouldn’t be surprised if this had terrible unintended consequences like pushing people to take on more risk (short term trading; crypto etc).