I want to start investing and want to make sure I have the best structure. I've heard that a family trust is really only worth the hassle if you are expecting a >$10k ROI p.a
Basically my situation is: wife & 2 kids under 18. Wife payg $30kish & me payg + s/e sole trader $50-70k (day job + small home based online business normally running at a loss)
Currently have ppor in joint names (around 80% lvr) & about $11k share holding in my individual name (owned outright).
My plan is:
- to start a share portfolio using margin lending with my existing shares as security.
- invest in Steve McKnight's US managed fund using home loan redraw funds split separately.
- setup an LLC and buy & hold in several US markets as well as some flips with a team on the ground.
- potentially buy and hold Australian property (funds/equity allowing)
(realistically, initial investments would be $<50k each investment except for Aussie property purchases)
The specific loan structures etc for some of these I will address separately.
My question is, while a family trust may be expensive and somewhat overkill in the early stages, I want to ensure I can start out right. I want to be able to 'go big' without tax & implications etc later.
I understand also that for privacy & liability etc that many investors use a trust or pty ltd to own a US LLC.
The main factors that concern me with any investment structure other than our joint names is the cost, complications and borrowing aspects. Basically the trust will own nothing initially and I would need to lend to the trust. Also I would imagine getting any finance approved will be more painful than in personal names.
Any general advice would be appreciated
Mike :)
Family trust overkill?
Basically my situation is: wife & 2 kids under 18. Wife payg $30kish & me payg + s/e sole trader $50-70k (day job + small home based online business normally running at a loss)
Currently have ppor in joint names (around 80% lvr) & about $11k share holding in my individual name (owned outright).
My plan is:
- to start a share portfolio using margin lending with my existing shares as security.
- invest in Steve McKnight's US managed fund using home loan redraw funds split separately.
- setup an LLC and buy & hold in several US markets as well as some flips with a team on the ground.
- potentially buy and hold Australian property (funds/equity allowing)
(realistically, initial investments would be $<50k each investment except for Aussie property purchases)
The specific loan structures etc for some of these I will address separately.
My question is, while a family trust may be expensive and somewhat overkill in the early stages, I want to ensure I can start out right. I want to be able to 'go big' without tax & implications etc later.
I understand also that for privacy & liability etc that many investors use a trust or pty ltd to own a US LLC.
The main factors that concern me with any investment structure other than our joint names is the cost, complications and borrowing aspects. Basically the trust will own nothing initially and I would need to lend to the trust. Also I would imagine getting any finance approved will be more painful than in personal names.
Any general advice would be appreciated
Mike :)
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