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what does Tax protected Vehicle mean?

Discussion in 'Investing Strategies' started by Triu, 5th Dec, 2006.

  1. Triu

    Triu Well-Known Member

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    Quote from Peter Span!

    "Take the $2,600,000 and invest it in a diversified portfolio of higher yield investments like shares, managed funds, commercial property trusts and so on through a tax protected vehicle. Let’s say all that averages 9% yield (higher during the share and cash cycles, a bit lower during the property cycles). That’s $234,000 in cash rolling in PA. Tax on that would be 30% in today’s laws, so you’d have $163,800 net, so we are in front of our target."

    Can anyone tell me what he means by a tax protected vehicle?


    thanks


     
  2. JoannaK

    JoannaK Member

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    Based on the quotation you've used i assume that it means a vehicle with a flat tax structre (ie, tax doesn't fluctuate depending on earnings), such as a company, which has a flat 30% tax. I could be wrong though...
     
  3. Balboa

    Balboa Member

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    MMah maybe he means summit like my son's gorgeous new Lotus that he bought from after tax earnings-Yes I did the sums and he can afford it-- [​IMG]
     
  4. NickM

    NickM Co-founder Staff Member

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    I think you should ask him !
     
  5. Smartypants

    Smartypants Well-Known Member

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    Hi Triu.

    Curious as to where this quote came from, i.e, what was Peter Spann referring to at the time of quote by saying "take the $2,600,000 and invest it in.................".

    Where was that sort of money coming from?

    Was he talking about selling down I/P's or maybe getting the equity out of an existing portfolio?
     
  6. Triu

    Triu Well-Known Member

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    I got this quote from his propertyinvesting.com.au site he was not to specific about where the money came from but i assume it was selling down his property portfolio.

    I heard him speak at the Freeman fox updates in Perth in November 2006. He said if he started again he would not buy alot of residential real estate. He also said he has sold alot of his residential real estate and invested in other areas but did not say where.