Political risk

[L555BAT]

The world feels to be getting a riskier place, where it's increasingly likely that political factors arising from both the masses and politicians, can have a negative affect on personal and business finances.

What political risks have you previously or currently identified and dealt with, and how?

Here's a few that come to mind:

1. Buy to let - it was clear a few years that it was too good to last; too attractive to the taxman, possibility of politically popular ideas such as rent control. I chose not to get in.
2. Nationalisation/price caps of utility companies - affecting your direct/indirect investment therein. Openly talked about by Labour, immediately affected the share price of some companies. I don't directly invest in individual stocks anyway.
3. Environmental law changes relating to motoring - affecting resale value of cars e.g. ULEZ, diesel. Already happening. I'll be paying attention when choosing my next car, and how this is planned for major cities outside London.
4. Pensions - taxation changes, redistribution, means testing of state pension. That cash you have stashed away will be too attractive for future politicians and the masses behind them to ignore. I think I should ideally do something about this but not sure what, perhaps diversification.
5. International relations and trade tariffs (including Brexit) - affecting your company/employer and the wider country. Nor sure there's much I can do.
6. Currency movements - political acts which reduce the international buying power of your assets and your income. I'm not doing anything, but wish I'd converted a few years' worth of holiday money before the Brexit referendum.
7. Immigration and outsourcing - more/less with consequences such as access to skilled staff from abroad for your company, or devaluing your skills. Outsourcing is definitely a worry for me.
8. Independence movements such as Scotland, causing instability with all that goes with it. Remember I had some money in one of the Edinburgh registered banks when the referendum was coming up, I was relieved that they moved the registration to London.
9. Inequality - much talk of it being a problem, and a two-tier society opening up. Those people without much to lose could do things that are damaging to you, physically or with their votes.

[98elise]

BTL - Been in for about 10 years refurbishing run down family homes and letting them locally . Exiting due to Tory punitive taxes and the likelihood of Labour making things dramatically worse. Just about to make a profoundly deaf single mother to 3 kids homeless. I feel like an utter , but can't take the risk.

Contracting - been contracting for about 7 years. Likely to retire next April when it looks like blanket inside IR35 decisions will be made. Been pumping cash into pension for the last few years in preparation.

Pensions - Aiming to drain as much out of my pension as possible before Corbyn gets in and redistributes in the name of fairness.

Buying property abroad - looking to move the proceeds from BTL sales to foreign property, both as a property let, and possible new home. Learning Spanish as that's where we will probably end up.

[Derek Chevalier]

L555BAT said:

The world feels to be getting a riskier place, where it's increasingly likely that political factors arising from both the masses and politicians, can have a negative affect on personal and business finances.

What political risks have you previously or currently identified and dealt with, and how?

Here's a few that come to mind:

1. Buy to let - it was clear a few years that it was too good to last; too attractive to the taxman, possibility of politically popular ideas such as rent control. I chose not to get in.
2. Nationalisation/price caps of utility companies - affecting your direct/indirect investment therein. Openly talked about by Labour, immediately affected the share price of some companies. I don't directly invest in individual stocks anyway.
3. Environmental law changes relating to motoring - affecting resale value of cars e.g. ULEZ, diesel. Already happening. I'll be paying attention when choosing my next car, and how this is planned for major cities outside London.
4. Pensions - taxation changes, redistribution, means testing of state pension. That cash you have stashed away will be too attractive for future politicians and the masses behind them to ignore. I think I should ideally do something about this but not sure what, perhaps diversification.
5. International relations and trade tariffs (including Brexit) - affecting your company/employer and the wider country. Nor sure there's much I can do.
6. Currency movements - political acts which reduce the international buying power of your assets and your income. I'm not doing anything, but wish I'd converted a few years' worth of holiday money before the Brexit referendum.
7. Immigration and outsourcing - more/less with consequences such as access to skilled staff from abroad for your company, or devaluing your skills. Outsourcing is definitely a worry for me.
8. Independence movements such as Scotland, causing instability with all that goes with it. Remember I had some money in one of the Edinburgh registered banks when the referendum was coming up, I was relieved that they moved the registration to London.
9. Inequality - much talk of it being a problem, and a two-tier society opening up. Those people without much to lose could do things that are damaging to you, physically or with their votes.

https://www.amazon.co.uk/dp/B06XRXM6CV/ref=dp-kindle-redirect?_encoding=UTF8&btkr=1

" In the face of fear-mongering, darkness and division, the facts are unequivocal: the golden age is now."

[L555BAT]

98elise said:

Buying property abroad - looking to move the proceeds from BTL sales to foreign property, both as a property let, and possible new home. Learning Spanish as that's where we will probably end up.

In doing that are you in effect exchanging current risks for a) similar BTL changes abroad, b) political sentiment abroad to foreign BTLers, and c) exchange rate risk?

Derek Chevalier said:

https://www.amazon.co.uk/dp/B06XRXM6CV/ref=dp-kind...

" In the face of fear-mongering, darkness and division, the facts are unequivocal: the golden age is now."

I expect it's true on a global level, however to counter from a personal selfish or even national level, in jest :

1. Food - I never wanted for any, more food supports population growth which destroys the environment and increases competition for natural resources etc.
2. Sanitation - I never had a problem, better sanitation supports population growth, ...as per previous
3. Life expectancy - I'm already going to life long enough, further increases place burden on the young
4. Poverty - never affected me, as people become richer they consume more and compete for natural resources
5. Violence - never affected me, violence keeps other countries busy and out of our way
6. The environment - improving despite population increase, but population increase is working against progress, also means I can't have a V8
7. Literacy - more literate and educated people devalue our skills
8. Freedom - some people just need to be ruled with an iron fist
9. Equality - eroding my privilege as a white western male

Added to my wish list, I could do with some positivity!

[98elise]

L555BAT said:

98elise said:

Buying property abroad - looking to move the proceeds from BTL sales to foreign property, both as a property let, and possible new home. Learning Spanish as that's where we will probably end up.

In doing that are you in effect exchanging current risks for a) similar BTL changes abroad, b) political sentiment abroad to foreign BTLers, and c) exchange rate risk?

Yields are greater and if I'm based there then exchange rates ate not an issue.

Buying well will mitigate any local problems. One place I'm looking at is a front line beaxh property on a resort in Tenerife. It really can be nothing else than a holiday let (unless the locals like expensive property in a hotel complex).