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These 78 comments are related to the topic:
Stockmarkets crash
Stockmarkets crash
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Sounds sensible to split the share holding 1st time poster. Don't worry too much about dividends drying up, it is unlikely with big companies but if it does happen, vote with your feet. That s the beauty of controlling your own finances. If you go for capital growth rather than a dividend, you can take a bit of profit when you need it, it amounts to the same thing.
I don't see much risk in the BTL business as long as Housing Benefit underpins the market, but it is not a living I would countenance myself. Plenty of options for you. Have you looked at your historical pension pot figures, BTW? |
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I don't see much risk in the BTL business
Like lambs to the slaughter. |
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With respect, Dr Crippen, your last post was very negative. The crash of 2007/08 did not happen overnight, it was a drawn out slide. There was ample to time to decide on what to do. And that's the difference, if your money is tied up you can't decide anything, you just have to sit and suffer through it.
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I refer above to Dr Crippen's post before last, "too risky."
"Lambs to the slaughter,"? - you certainly would be if I had my way, Doctor. |
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What's the point in retiring at all if you're going to carry on working with BTL, or managing stocks and shares.
And you haven't even mentioned corporate bonds which are a much safer option for income than shares. You might as well carry on at work until you die. You'll probably end up being the richest man in the cemetery. |
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I'll tell you what will happen to you unitedbiscuits.
They'll put your ashes in an egg timer. Then you can work when you're dead as well. |
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Lets have a quick chuckle at Dr Crippen's definition of "work" and not hijack 1sttimeposter's concerns.
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1st time poster
“cant see the point in taking the 25% cash free to put in an isa paying next to no interest” The point of taking the 25% cash free Let’s say you were retiring in 2018 and you decided to carry on investing & drawing down 4-5% each year. In 2020, the chancellor decides that those pensioners have been enjoying too much tax relief & tax free cash & decides to abolish the withdrawal of 25% tax free. Now, all of a sudden the withdrawal of some of the pot may be subject to income tax. So you should consider taking 25% tax free at your earliest opportunity, just in case. I certainly will be! Also, when you add the state pension (7.5K) to your pension drawdown, you could easily be facing a tax bill some years. As for interest, with a stocks & shares ISA, the same or comparable investment funds you’d be invested in your pension will also be available in the stocks & shares ISA. “might as well leave it in the pot with the company you’ve trusted for 40 yrs to build it up” The company you said you use, Standard Life, also do ISAs. The same or comparable investment funds you’d be invested in your pension would be available to you in an ISA. There are lots of providers & you should scrutinise the charges. I use Selftrade. You should also have a look at a drawdown calculator to work out how long your pot might last with various monthly withdrawals. https://www.hl.co.uk/pensions/drawdown/calculator |
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You could always whack your money in a tracker and forget about it.
Better results than you will get from the analysts at a fraction of the cost. |
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Yes & there's also lots of Vanguard funds with very low charges. Certainly a lot lower than the sort of funds his pension is currently invested in.
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1st time poster
Your comment about dividends from investment in a certain telephone company reads to me as if you have a high proportion of your wealth invested in a single company. If so, this is very risky. Most suggest you should have no more than 10% of your wealth invested in a single company. There are plenty of companies paying this type of dividend and spreading the risk across a no. of companies would be a less risky way of achieving this aim. A single adverse event in the telephone company could put a big dent in your savings. |
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you would be correct stow all in one company and i dont dabble in stocks and shares[except pension obviously ],there just shares accumalated through the wifes share save scheme,and for a laymen [ ME ],the amount recieved in dividends 4 to 5 grand tax free would far outweigh anything we,d get if we sold them and invested the money in the usual places,the shares are also not in an isa wrapper [ the amount rather crept up on us over the years ]so there would be some capital gains damage to stomach,did look into getting them into an isa wrapper but without paying for the advice was all rather complicated for this layman
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Here's a thought, simply take whatever you can get out of your lump sum and put it in an ISA fixed term for better returns.
Say you raise a pot of £100,000. You retire at 60 you need 25 years of returns £100,000 divided by twenty-five years = £4,000 per year. That's your pension tax-free. You're not taking out your interest so your money will last longer than 25 years. If interest rates rise, you might have the pleasant worry of not spending your money quickly enough! Sorted, now go out and enjoy your retirement. |
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Pay yourself £50 an hour to research using the internet and helpful forums.
Spend that money on some luxuries that you wouldn't normally have. I hope you are using your CGT allowance each year to reduce holdings. |
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Exactly, Jack. You can take 11k PROFIT before April 6th. Then another 11k on that date.
Don't bother putting what you have in a ISA wrapper and definitely don't pay an advisor to tell you otherwise. |
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Warren Buffet disagrees with diversification. If he was advising 1sttimeposter, he would tell him to stick with the stock that he likes, especially if it has served him well.
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Don't bother putting what you have in a ISA wrapper
You can take 11k PROFIT before April 6th What's this? Investment decisions based on tax liabilities? That's no way to trade shares with ISAs around. The trading costs will probably outweigh the ISA charges anyway. Why not hold your shares within an ISA, and pay the ISA providers a paltry amount each year. Then enjoy total flexibility with your trading tax free? And no declarations to make on your tax returns either. |
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You don’t usually need to pay tax if you give shares as a gift to your husband
https://www.gov.uk/tax-sell-shares/what-you-pay-it-on If you transferred half into your name, your annual dividend would be below 4K each. You each have a capital gains tax of 11K each year. Note that this is a tax on gain. So if you paid 10K for some shares and then sold them for 21K some years later, that would be an 11K gain and you'd have no tax to pay. If you have paper certificates, you could transfer them into a share account. I did this with a Halifax share dealing account some years ago. There are no annual charges in these type of share dealing account for just holding your shares electronically. ISA accounts do have some annual charges. The dealing charges in these accounts are normally less than those for dealing with paper certificates. If you wanted to transfer some/all into stocks & shares ISAs. You could sell some shares each year and re-purchase them in the ISAs. (It would cost you two lots of dealing charge + 0.5% stamp duty on purchase) You could both have an ISA account and could each put up to 20K each year into it. |
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You do jump in with both feet, Dr Crippen.
I'm not saying 1sttimeposter should sell those shares, I rather think he should not. But the option is there. I thought he may not know. |
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Even big companies have significant adverse events, so it's not wise to have too much invested in any one company.
BT http://www.telegraph.co.uk/business/2017/01/27/bt-profits-dive-wake-italian-scandal/ GSK http://www.bbc.co.uk/news/business-29274822 |
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And I was suggesting he sell to reduce CGT liability. He could buy back inside an ISA.
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Yes, that's a point. Depends on temperament and what you are comfortable with. Bottom line is, even if you use a pin, you will outperform most pension funds, get dividends and not have to pay their fees. Of course, I would be wrong in 1sttimeposter's case if his pension transfer value is growing at a faster rate than other indices.
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ahhr i get it jack
before your last post i was just going to say lot of advice on using up cgt allowance ,but no mention of what if the holdings share price is not favourable to the price you bought them at,but hacksaws last post sort of covers that,we,re in the process of spiltting the holdings between us before the dividend tax is reduced next year lots of interesting advice on here,probably goes to show how different people [minds] can use a pot to make a big difference on how much you can squeeze out of it |
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Sears only a few years ago America's biggest retailer just announced they are not sure of survival. 140,000 work for them. Some big names over here likely to be in same position.
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Yes, Bed and ISA them.
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standards life fee for me is 1.5%,i no some stakeholder pensions charge alot less ,but what you consider 1.5 as to high, obviously depends on what they do for that 1.5
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heard about bed and isa them but it was explained to the wife who had difficulty in explaining it to me,for example we have share certs bought at a huge range of prices over 25 years,as said above some bought at above the current market price and some bought way below the current market price
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1.5% is obscenely high!
Take a read of this from the Times :- The annual charges you pay on your investment and pension funds may seem like a tiny fraction of the overall total. However, they matter because they will eat heavily into your investment returns. The Department for Work and Pensions (DWP) calculates that people who save throughout their working life into a pension would lose 24 per cent of their accumulated pot if the annual charge was set at 1 per cent. If the charge was raised to 1.5 per cent, the chunk of pension pot that would be lost becomes an eye-watering 34 per cent. However, the DWP’s calculations do not cover the full cost of the fund charges that investors bear. The typical headline charge figure quoted by most investment and pension funds takes no account of other “hidden” charges, such as dealing costs, which are borne by the investor but do not feature in the stated charges. |
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Bottom line is, even if you use a pin, you will outperform most pension funds, get dividends and not have to pay their fees
Again that's not the case at all. How many shares are you going to invest in? You could come a right cropper with selecting up to ten shares if one of them goes bust and others underperform. Even a profits warning from one of them could be enough to turn a general market rise into a loss on your personal portfolio. That's why people invest in unit trusts where they might be invested in a hundred companies. Of course unit trusts do well to beat the market with their charges, but your own shares aren't free of charges either. |
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I'm not up to where we currently are with pension rules but the last thing you want to have to buy is annuity, which certainly was the case. Annuities are friends of the state and the enemy of individuals.
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Pension annuities were designed to lessen the burden on the welfare state.
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Calculating CGT on shares.
http://www.scruttonbland.co.uk/blog-post/calculating-capital-gains-tax-your-share-portfolio |
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Annuities have got to be a good deal for the insurance companies.
They base their annuity rates on the current interest rates of long term gilts. How can they lose? |
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Annuities are a total tip off. Imagine a law where you have no choice but to buy potatoes. You might not even want them, but because you have to buy them, you going to pay too much for them whether you want them or not.
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its for people with your outlook dr
i,m sure when annuties were paying 12,13 grand for a 100 grand pot,it stands to reason doing your own investing you could have got a better return,i,m not out to make a killing or of high expectations,but if i had a pension pot that got me the amount of money i have decide i need ,i,d snap their hands off tomorrow no matter how bad a value in might represent to some people, unfortunately i havnt,  |
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If someone said to me that you get tax exemption on pension contributions, but when you retire you pay tax on 75% of it anyway, and with that 75% you have to buy potatoes, nobody would think twice.
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It would be a whole lot better if pension contributions and annuities were mandatory, and that their raison d'etre was to lower the welfare state bill, rather than dressing it up as being essential to everyone's self interest, when it certainly isn't.
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Dr Crippen 21 Mar 17 18:21
The next support level is 7368 if it dips again tomorrow. 7368 is wrong, should have said around 7302. So it worked out perfectly again. It's remarkable how these support levels can be predicted. It actually bottomed at 7,301.83. Which is about as close as you can get. Then the selling was contained and overcome by buying. Nevertheless the weakness observed last Friday will haunt the market for some time now. Providing a good buying opportunity for the bulls perhaps? It's always interesting when one sees these moves developing what the reports say caused the movements after they have happened. Then when the market changes direction again, the reports are put into the bin where they should have been put in the first place. |
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Talk about false news. e.g.
'The FTSE was down 7.8 points today on fears over the effect of Brexit' The FTSE was up 3.4 points today on increased optimism in Bhutan' |