Bonus $50 When You Invest $100+ @ Ratesetter (New Customers)

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Earn a $50 bonus if you invest $100+ by 31 August 2019.

Terms & Conditions Link

Referral Links

Referral: random (68)

$75 for referrer and referee.

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Comments

  • +17 votes

    What capital return isnt taxable?

    • +7 votes

      All on black?

      •  

        I'm pretty sure life insurance bonds are tax free after ten years. Returns are often not great though.

        • +2 votes

          Insurance Bonds are taxed internally at a rate of 30% for income and capital gains. Note you also do not receive a 50% discount for CGT.

          Also, returns can be great. A few providers provide access to index funds which can perform exceptionally well over a 10+ year period.

    • -1 vote

      Owning shares mean you don't realise the capital gain immediately. I can hold the gains until I retire and sell $18k a year tax free. Only thing taxable is dividends, which aren't as much.

      And.. ratesetter is also more risky than some shares/ETFs.

      • +6 votes

        Because share price going up isn't a return to you until you cash it out it's just a meaningless number.
        The returns are still taxable. All returns are taxable unless you're doing something dodgy. I think they're just saying that pulling money out because the returns are taxable is a stupid reason.
        Being riskier or getting a lower return is a much better reason to pull money out or not invest.

        Also, a bit odd that you're posting a deal to something you don't seem to have great things to say about…

        • -1 vote

          I think they're just saying that pulling money out because the returns are taxable is a stupid reason.

          And why is that? Why would I want to lock in a return now with a high tax bracket when I could have a lower one in the future?

          Let's say I buy a share and in 10 years from now, I don't pay any cent on capital gain and at the end if it's in profit, I pay gains. If it's in loss, I sell it at market value for my money back and take a tax deduction on the loss. If profit, I'l sell andl also pay less tax if I am retired or semi-retired because I am in low bracket.

          If I am with ratesetter, I pay tax every year for all gains along the way, potentially at maximum tax bracket. If ratesetter goes bankrupt before the 10 years, I lose 100% of my capital and have paid tax on gains I don't even have (if I reinvested). If I profit, then yes i've already locked in gains over the years and nothing left is outstanding.

          Being riskier or getting a lower return is a much better reason to pull money out or not invest.

          Sure. You can think however you like if it makes you feel better.

          Also, a bit odd that you're posting a deal to something you don't seem to have great things to say about…

          Some people will find value. You're welcome.

          • -2 votes

            @watwatwat:

            Why would I want to lock in a return now with a high tax bracket when I could have a lower one in the future?

            You would do that if you want to use the money to invest in something better… Ask Warren Buffett…

            • -1 vote

              @jv: I haven't really considered it but perhaps delaying payment of tax frees up more capital to invest due to the time value of money. Pay tax now and money goes to the government instead of being in your pocket. Time value of money.

              • -1 vote

                @watwatwat:

                I haven't really considered it but perhaps delaying payment of tax frees up more capital to invest due to the time value of money.

                Amateur vs Professional investor…

          • -1 vote

            @watwatwat:

            If ratesetter goes bankrupt before the 10 years, I lose 100% of my capital and have paid tax on gains I don't even have

            You'd also have a big tax write-off (potentially at maximum tax bracket).

            Same could have with your shares by the way…

    •  

      What capital return isnt taxable?

      capital return isn't taxable;
      however, the interest received is taxable at your marginal tax rate.

      disclosure: ratesetter investor for the past 4 years.

      • -2 votes

        capital return isn't taxable

        What do you mean? Are you just playing with semantics?
        The interest in this case is the return on your invested capital, just as the interest in a savings account, or term deposit is the return on that capital. Just like dividends from shares makes up part of the return on capital invested in shares.

        • +1 vote

          there's a difference between capital return and return on capital;
          i'm talking about the former, and you're talking about the latter.

  •  

    Get Bonus $50 When You Invest $100

    Where does it say this?

    •  

      if you click on his ozbargain link it does. Maybe because it's a referral

      •  

        It's not a referral link and they also don't have any referral offer active right now. Link is ratesetter.com.au/50

        I also agree it doesn't say it so I don't know why they are handing out flyers with this offer. Contact them if you have any issues redeeming, I guess.

        •  

          thanks
          If I hover to link thats the correct url

        •  

          Pic of flyer? Where was it handed out?

        •  

          Hey mate it also says your referral link, is that the $75 if they invest $2k? Been trying to get a mate into it and can't find myself a referral link other than the $75/$2000 from my account and can't see this $50 for $100 in the account setting either.

  • +1 vote

    I don't like the fact all returns are taxable.

    So you prefer losses, which are tax deductible ?

  •  

    Is it safe to invest ?

  •  

    Be wary of anything that offers up to 8 per cent. I can draw down my home loans which is currently 3.5 per cent and possibly get up to 8 per cent? Something seems not right.

  •  

    I invested $1000 for 1 year while they had the $100 bonus promo going on. No issues at the time and have since withdrawn all my money

  •  

    Let me guess, you're gonna invest in the sharemarket now at the top of the cycle?

    • +6 votes

      I didn't realise that the share market cycles were so easy to predict and identify. Given debt is so cheap at the moment, I wouldn't be surprised if it keeps rising for a while yet…

  •  

    Perhaps a description would help some members here decide if it's worth it or not, for example:

    If we invest $100, do we automatically get $50 added to that investment? If so, is there a cooling off period until the full investment can be withdrawn?

  •  

    You all DO realise that the bonus is taxable as well as the interest, even if it is reinvested. Same as dividend reinvestment plans (DRP) for share divs. ALL income is taxable in the financial year in which it is realised/earned. If someone knows a (legal) way to defer paying this tax please tell us all.

    Ps. I have an investment with Ratesetter and am very happy with it.

    • +1 vote

      If someone knows a (legal) way to defer paying this tax please tell us all.

      DSSP

      Not many companies offer it though, AFI and WHF are the only ones that come to mind.

      •  

        Thanks for your feedback. Not quite suited to my circumstances (SFR) though, due to loss of franking credits and my low tax rate. Would be great for someone in high tax bracket though. Good tip.

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