General guidance - Intelligent Money Private Clients

[dingg]

No not the Cameron dies method.


Simple percentage increase over the past 52 weeks, no additions or debits, might get confusing from now on as starting to draw from the pension element :-0

[Simpo Two]

dingg said:

No not the Cameron dies method.


Simple percentage increase over the past 52 weeks, no additions or debits, might get confusing from now on as starting to draw from the pension element :-0

You have to be careful; the performance figures shown by my main platform includes new money coming in and also withdrawals, though they're nothing to do with the actual (ie investment) performance.

[PabloEscortCar]

I have asked this on another thread, but assuming it is allowed:

I have recently sold a house and have ended up with a lot of money (by our standards) sitting in the bank, around £800k.

I am retired (65) but my wife still wants to work, we don’t owe anyone any money, have a nice roof over our heads, have the cars I want and we don’t have any kids/grandkids to worry about. We can afford to pay our bills with the bits and pieces that come in and I dare say with some careful planning we could probably live the rest of our lives well just by eating up all the capital, but I would rather not do that.

So what I am looking for is an investment plan that makes a reasonable return for a reasonable risk. I would like reasonable access to at least half the money in case we come across a bargain bolt hole somewhere nice, unlikely to happen but just in case something turned up.

Had I wanted to put it into property and do the renting thing I could have just kept the house I had and done that, I don’t want to do that. As much as I like cars I have no space for any extras so not looking to invest in classics.

The simplest/safest thing would obviously be to split it up and stick it in banks and get whatever I can in the way of interest, but even with interest rates almost certainly creeping up in the near future the returns would still be grim. Not interested in Crypto, don't get it, not doing it.

Any suggestions welcomed.

[Intelligent Money]

PabloEscortCar said:

I have asked this on another thread, but assuming it is allowed:

I have recently sold a house and have ended up with a lot of money (by our standards) sitting in the bank, around £800k.

I am retired (65) but my wife still wants to work, we don’t owe anyone any money, have a nice roof over our heads, have the cars I want and we don’t have any kids/grandkids to worry about. We can afford to pay our bills with the bits and pieces that come in and I dare say with some careful planning we could probably live the rest of our lives well just by eating up all the capital, but I would rather not do that.

So what I am looking for is an investment plan that makes a reasonable return for a reasonable risk. I would like reasonable access to at least half the money in case we come across a bargain bolt hole somewhere nice, unlikely to happen but just in case something turned up.

Had I wanted to put it into property and do the renting thing I could have just kept the house I had and done that, I don’t want to do that. As much as I like cars I have no space for any extras so not looking to invest in classics.

The simplest/safest thing would obviously be to split it up and stick it in banks and get whatever I can in the way of interest, but even with interest rates almost certainly creeping up in the near future the returns would still be grim. Not interested in Crypto, don't get it, not doing it.

Any suggestions welcomed.

Hi PabloEscortCar

The difficulty is that one mans reasonable risk is another mans too safe and the other mans big punt!

The first consideration is usually "what do you want the money to do for you?" i.e. do you need some income from it? If so how much and when?
Is it a lump of money to be used "adhoc" over the coming years to fund one offs? Things such as a bolthole as you mention, or holidays, presents for family, home improvements etc.

Then you need to consider the "tax wrapper" i.e. use of ISA allowances both now and in future years, use of a General Investment Account
(GIA) to make use of your CGT allowance and any Pension options that may be available to you.

Then it is down to the investment options themselves.

The risk you are happy to take is often driven by two things, your fear of either losing some of the value of your investment or losing out on potential growth, and the level of understanding you have about the investment you make. Something you don't understand will often feel higher risk than something you do.

Having some flexibility about when you need to access the funds is also a good way to reduce the risk with stocks and shares based investments. Often if you are able to chose when you exit you can pick a time when your valuation is good.

With so many variables a conversation is often easier than e-mail or forum posts, I'm very happy to set up a call, no charge or obligation, to chat through the things you may want to consider. Just drop me an e-mail at [e-mail] if a call would be useful.

Regards

Nik

[PabloEscortCar]

Intelligent Money said:

With so many variables a conversation is often easier than e-mail or forum posts, I'm very happy to set up a call, no charge or obligation, to chat through the things you may want to consider. Just drop me an e-mail at [e-mail] if a call would be useful.

Regards

Nik

YHM

[Consigliere]

General question about tax.

Tax free threshold is £12,570, then upto £50,270 is 20%.

If my tax code is £1k more allowance, so 1357 (as aopposed to 1257) does that mean i pay 20% tax upto £50,270 or £51,270?

[bogie]

Consigliere said:

General question about tax.

Tax free threshold is 12,570, then upto 50,270 is 20%.

If my tax code is 1k more allowance, so 1357 (as aopposed to 1257) does that mean i pay 20% tax upto 50,270 or 51,270?

you pay 20% up to £50270, you get £13570 tax free

[twokcc]

ISA rules. Can I transfer a cash from an old stocks and shares ISA to a new cash ISA.
Details hers
https://www.pistonheads.com/gassing/topic.asp?h=0&...

Transfer info seems to say yes I can but as this would require opening a second cash ISA (to be funded by cash from old S& S Isa) from existing others say cannot due this.

IF - any advise appreciated.

[markiii]

most ISA providers word it very badly. You can only open one Cash ISA per year for brand new funding. If its coming from an existing ISA have as many as you want

[Intelligent Money]

twokcc said:

ISA rules. Can I transfer a cash from an old stocks and shares ISA to a new cash ISA.
Details hers
https://www.pistonheads.com/gassing/topic.asp?h=0&...

Transfer info seems to say yes I can but as this would require opening a second cash ISA (to be funded by cash from old S& S Isa) from existing others say cannot due this.

IF - any advise appreciated.

Hi twokcc

I have copied this answer to your question in another thread below, so you have both answers in one place.

For this tax year 23/24 you can only contribute to one S&S ISA and one Cash ISA per tax year, so if you have made contributions to a Cash ISA already this year you won't be able to open another one until April 6th 2024. Ironically from that point the new ISA rules will be in-place which will allow multiple ISA to be contributed to in a tax year.

Your current provide may have a money market option within the S&S ISA that may offer you an option that is similar to cash in the meantime.

To answer this question, if you haven't contributed to a Cash ISA this tax year then you should still be able to open a Cash ISA and transfer funds over from a S&S ISA. This will be subject to the provider allowing you to do so, but nothing in legislation prevents it.

Hope that helps

Cheers

Nik

[twokcc]

Intelligent Money said:

To answer this question, if you haven't contributed to a Cash ISA this tax year then you should still be able to open a Cash ISA and transfer funds over from a S&S ISA. This will be subject to the provider allowing you to do so, but nothing in legislation prevents it.

Hope that helps

Cheers

Nik

Yes i does Nik thanks for responding.
As other poster has said the information given by the actual providers is not clear. This years cash ISA is with Virgin money , I contacted them regarding this and their reply was that they couldn't advise me re clarification of ISA rules and referred me to its investment arm.

I will ask my current S&S ISA about money market options
Thanks

[JulianPH]

PabloEscortCar said:

I have asked this on another thread, but assuming it is allowed:

Not interested in Crypto, don't get it, not doing it.

I know Nik has already answered and you've pinged him an email, but I just wanted to say how happy I am every time someone says this.

I have worked in investments most of my life and Crypto has absolutely no logical reason to invest in it.

I am not saying it isn't possible to make a lot of money from it (many people have) and we know it is certainly possible to loose a lot of money from it, I am just talking about the investment logic - the fundamentals just are not there.

Carry on!