Intelligent Money - your investment questions answered

[mikeiow]

JulianPH said:

Hi Mike

Zero difference in costs for you which ever way you do it, as we absorb the dealing costs ourselves within the 0.67% fee, rather than pass these onto our clients.

Of course this means it costs us more in dealing costs!

Thanks! I'll try to avoid £10 a day for 1,000 days then

[JulianPH]

uk66fastback said:

So does this apply to all PHers? My situation is that I've got a dormant Aviva pension which is just going up by a few % a year - it sits there, I do nothing with it as it's my old company scheme that the company stopped paying into when they set up the new one we've all got - which is with Standard Life.

I'm quite happy to just leave the Aviva one as it is for now.

But I want to do something with my old Equitable Life one which I took out in 1983 - and ran when I was self-employed until all the trouble circa 1998 - and since when has laid dormant again. Being a lazy SoB I paid scant attention to it over the years but knew the pot was creeping up slowly. Now EL have sold the with-profits policies to Utmost Life & Pensions and there's been a huge uplift in the fund's value. I want to take advantage of this and take out the 25% tax-free part of the new figure - lots of things to do with it house/garden/family/car wise etc - and am aware I have to have some kind of financial product with the rest, I can't leave it with Utmost.

Do I sound like the kind of situation you can assist with? Again, not looking for HUGE risk - aim to retire in 10 years or so more or less - aged 57 now. Have had recent discussions with an annuity company but the returns look pretty dire (albeit 100% safe)*

Any help appreciated ...

• Unless Trump or his North Korean mate push the Red Button

Yes, it applies to all PHers!

We can certainly assist you in all of this and a good starting point would be to have a look at our website (www.intelligentmoney.com) and drop Nik an email ([e-mail]) to arrange a chat.

You can go over things with his over email, the phone, face-to-face or a mixture, it is entirely up to you.

There is no charge or obligation for this either.

Just give me a shout if there is anything further you would like to know.

Cheers

Julian

[JulianPH]

mikeiow said:

JulianPH said:

Hi Mike

Zero difference in costs for you which ever way you do it, as we absorb the dealing costs ourselves within the 0.67% fee, rather than pass these onto our clients.

Of course this means it costs us more in dealing costs!

Thanks! I'll try to avoid £10 a day for 1,000 days then

That would be incredibly kind of you Mike!

[uk66fastback]

Thanks Julian - I'll have a look at the IM website and come back to you or Nik with any queries ...

[Kingdom35]

JulianPH said:

Their long term performance has been impressive though, so don't beat yourself up to much!

The issue is they have taken far higher levels of volatility for lower returns than PH Equity.

You may be best not to read the reply I am about to post to Superlightr though!

Too late :-/

Time in the market and all that....il hang tight. Stick to my plan. I will be coming over to IM on the 6th April to see what the fun is all about :-)

[chip*]

JulianPH said:

Kingdom35 said:

This is panful for me as I have Fundsmith and LT in my portfolio.... il be speaking to Nik shortly about moving across :-)

Their long term performance has been impressive though, so don't beat yourself up to much!

The issue is they have taken far higher levels of volatility for lower returns than PH Equity .

You may be best not to read the reply I am about to post to Superlightr though!

Interesting. Can you share the metrics/findings to show this point?

[jshell]

Got a question on pensions, if anyone can answer. Around 1/3 of my previous company DB scheme is overseas. Is there any way I can take all of that out and invest in a UK fund without being hit for tax? Maybe that's a cheeky ask...

[JulianPH]

chip* said:

JulianPH said:

Kingdom35 said:

This is panful for me as I have Fundsmith and LT in my portfolio.... il be speaking to Nik shortly about moving across :-)

Their long term performance has been impressive though, so don't beat yourself up to much!

The issue is they have taken far higher levels of volatility for lower returns than PH Equity .

You may be best not to read the reply I am about to post to Superlightr though!

Interesting. Can you share the metrics/findings to show this point?

This is what I have been posting over the last few page.

The charts show exactly this.

[JulianPH]

jshell said:

Got a question on pensions, if anyone can answer. Around 1/3 of my previous company DB scheme is overseas. Is there any way I can take all of that out and invest in a UK fund without being hit for tax? Maybe that's a cheeky ask...

Overseas can mean a lot of different things!

Let me know more (here or privately) and I will assist.

Cheers

Julian

[jshell]

JulianPH said:

jshell said:

Got a question on pensions, if anyone can answer. Around 1/3 of my previous company DB scheme is overseas. Is there any way I can take all of that out and invest in a UK fund without being hit for tax? Maybe that's a cheeky ask...

Overseas can mean a lot of different things!

Let me know more (here or privately) and I will assist.

Cheers

Julian

Thankyou. Very large company, stated as not HMRC registered. From their factsheet:

The fund is registered in Bermuda and as such the Trustee Directors responsible for administering the Fund do so according to the fund's Trust Deed and Regulations and Bermudian law.The fund is not governed by UK law nor is it a registered scheme in the UK with Her Majesty’s Revenue & Customs (HMRC). This means that benefits built up in the fund do not count towards HMRC limits on the Annual or Life TimeAllowance. (Name changed to 'fund')

If paid in UK it'll be subject to UK tax, if paid overseas then local tax. Prob about £1.2million in transfer value.

I haven't started really, seriously looking into it, but I can take it in 12 months time. Obvs want to avoid as much tax as

Cheers!

[JulianPH]

jshell said:

JulianPH said:

jshell said:

Got a question on pensions, if anyone can answer. Around 1/3 of my previous company DB scheme is overseas. Is there any way I can take all of that out and invest in a UK fund without being hit for tax? Maybe that's a cheeky ask...

Overseas can mean a lot of different things!

Let me know more (here or privately) and I will assist.

Cheers

Julian

Thankyou. Very large company, stated as not HMRC registered. From their factsheet:

The fund is registered in Bermuda and as such the Trustee Directors responsible for administering the Fund do so according to the fund's Trust Deed and Regulations and Bermudian law.The fund is not governed by UK law nor is it a registered scheme in the UK with Her Majesty’s Revenue & Customs (HMRC). This means that benefits built up in the fund do not count towards HMRC limits on the Annual or Life TimeAllowance. (Name changed to 'fund')

If paid in UK it'll be subject to UK tax, if paid overseas then local tax. Prob about £1.2million in transfer value.

I haven't started really, seriously looking into it, but I can take it in 12 months time. Obvs want to avoid as much tax as

Cheers!

If it is not HMRC registered you could not have had income tax relief on your contributions, meaning there was no point in using any form of pension in the first place.

Possibly best for you to PM me with more detail. The investments may be fine (though expensive), but the use of a pension wrapper appears to make no sense whatsoever.

Cheers

Julian

[jshell]

JulianPH said:

If it is not HMRC registered you could not have had income tax relief on your contributions, meaning there was no point in using any form of pension in the first place.

Possibly best for you to PM me with more detail. The investments may be fine (though expensive), but the use of a pension wrapper appears to make no sense whatsoever.

Cheers

Julian

Thanks, will do, but sometime in the next few days. Got a year, no rush!

[JulianPH]

jshell said:

JulianPH said:

If it is not HMRC registered you could not have had income tax relief on your contributions, meaning there was no point in using any form of pension in the first place.

Possibly best for you to PM me with more detail. The investments may be fine (though expensive), but the use of a pension wrapper appears to make no sense whatsoever.

Cheers

Julian

Thanks, will do, but sometime in the next few days. Got a year, no rush!

Whenever suits you, we will be here.

Cheers

Julian

[chomer75]

Just curious to hear if IM have made any significant changes to the holdings in the IM Optimum portfolios due to the recent falls in the global stock markets?

[JulianPH]

chomer75 said:

Just curious to hear if IM have made any significant changes to the holdings in the IM Optimum portfolios due to the recent falls in the global stock markets?

Nothing hugely significant, which is a sign we are very happy with our positions.

Prior to markets opening on Monday we did slightly reduce our exposure to Japan. This was more to do with Japan increasing its purchase tax from 8% to 10% though (and the knock on effect this will have on their economy, rather than Coronavirus itself).

Before this we made a slight reduction in EU exposure, to take into account its reduction in funds with the UK departing.

Our US exposure remains the same, as does our UK exposure.

Gold has remained important for us (c. 5%) and is at a relative high. Our exposure to this asset class (together with bonds, gilts, property and cash) enables us to hedge against equities to deliver optimum returns.

Of course there will be falls, this is part and parcel of the nature of investing, but I think we are well positioned for the future (which is why so much of my own money is invested there!).

If I can be more specific then just let me know.

Cheers

Julian

[chomer75]

JulianPH said:

chomer75 said:

Just curious to hear if IM have made any significant changes to the holdings in the IM Optimum portfolios due to the recent falls in the global stock markets?

Nothing hugely significant, which is a sign we are very happy with our positions.

Prior to markets opening on Monday we did slightly reduce our exposure to Japan. This was more to do with Japan increasing its purchase tax from 8% to 10% though (and the knock on effect this will have on their economy, rather than Coronavirus itself).

Before this we made a slight reduction in EU exposure, to take into account its reduction in funds with the UK departing.

Our US exposure remains the same, as does our UK exposure.

Gold has remained important for us (c. 5%) and is at a relative high. Our exposure to this asset class (together with bonds, gilts, property and cash) enables us to hedge against equities to deliver optimum returns.

Of course there will be falls, this is part and parcel of the nature of investing, but I think we are well positioned for the future (which is why so much of my own money is invested there!).

If I can be more specific then just let me know.

Cheers

Julian

Thanks Julian. Very interesting.

Having recently transferred my ISA and SIPP to IM, knowing I'm invested in the same products as the people looking after my cash is quite reassuring.

[Groat]

What do the Dow/Ftse have to fall to before the window-jumping starts?

[mikeiow]

Groat said:

What do the Dow/Ftse have to fall to before the window-jumping starts?

Not sure what you’re really asking, but as someone who had colleagues at 1 Poultry when there was literally someone jumping off to their death during a prior crash, I’d perhaps chose my words more carefully.
Just saying. Not a laughing matter for some

[bitchstewie]

mikeiow said:

Not sure what you’re really asking, but as someone who had colleagues at 1 Poultry when there was literally someone jumping off to their death during a prior crash, I’d perhaps chose my words more carefully.
Just saying. Not a laughing matter for some

Jesus I'd heard of that during the great depression but I thought that was a bit of a trope in modern financial life

[JulianPH]

Groat said:

What do the Dow/Ftse have to fall to before the window-jumping starts?

Hi Groat

Whilst I understand this was intended as banter, some of us do know people who were affected by people actually doing this.

To address your point though, whilst not nice to ride through, this is a blip in the grand scheme of things. We focus on long term investing, not short term trading.

Much of these falls are due to knee jerk reactions to headlines. To put Coronavirus into perspective, it is estimated that up to 600.000 people die from flu related respiratory conditions every year.

Another thing to remember is that whilst you will regularly see headlines shouting markets have fallen by x billion, you never see headlines saying markets have grown by y billion.

I often think the days when you got an annual statement in the post each year were better for long term investors than seeing daily price movements!

Edited by JulianPH on Friday 28th February 09:43