Buying shares and the "sole purpose" test

Discussion in 'Superannuation' started by skipau, Mar 13, 2012.

  1. skipau

    skipau Member Silver Stacker

    Joined:
    Oct 4, 2011
    Messages:
    294
    Likes Received:
    9
    Trophy Points:
    18
    Location:
    Brisbane
    Hi all..

    just asking for some thoughts on this...

    When buying shares for your super fund how does buying shares that return a dividend rate against shares which don't return a dividend but have potential for higher capital growth.?

    What I mean is... if the goal of the super fund is to give money for retirement then would I have to shy away from dividend type shares in more favour for capital growth as that is the aim of the super fund?

    Cheers
     
  2. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

    Joined:
    Feb 26, 2010
    Messages:
    8,809
    Likes Received:
    72
    Trophy Points:
    48
    Location:
    Gone Fishin'
    IMHO, Non-Dividend shares are a 'construct' of the banking industry to rob you of your reward.

    They're for the greedy, gullible and uneducated, Avoid them like monkey stink!
     
  3. Cracka

    Cracka Active Member Silver Stacker

    Joined:
    Jul 27, 2011
    Messages:
    100
    Likes Received:
    34
    Trophy Points:
    28
    Location:
    Melbourne
    You can go both ways, the sole purpose test is just that the reason you are doing it, is for money in retirement. How you get there is up to you. Capital growth is one component as is dividends paid. You would hardly expect that you would not change your mind between buying a stock and when you meet retirement age. At the end of the day, it's how you accumulate and grow the balance that's important.

    Personally, I have a mix of all the above, penny dreadfuls through to dividend paying blue chips and cash and Precious Metals. All because I believe they will give me the best bang for the buck and importantly, they are monitored very closely to try to ensure that I don't lose capital on any of them.
     

Share This Page