Intelligent Money - your investment questions answered

[JulianPH]

King David said:

Just a quick hello from an IM newbie. The PH Recovery band wagon got me interested and after a quick call with Nik on Thursday I was promised it's the quickest way to a brand new lambo short of Forex

Seriously though, thanks to Nik for taking the time to chat through my options. Looking forward to getting going!

Hi David

Welcome to the club!

I'm glad to hear Nik has been helpful and we always remain on hand whenever you require anything.

We will do our best with your Lambo investment and I hope it doesn't turn out to be a Fiat!

Cheers

Julian

[JulianPH]

Phooey said:

JulianPH said:

Phooey, I only had the security system installed when I found out you lived down the road!

You should have popped in for a cuppa!

I was unnerved by the array of naked manakins peering out the upstairs windows

Ah, they must have been my concubines!

(Hoping Mrs PH isn't reading this )

[GR_TVR]

JulianPH said:

It was just a coincidence in the numbers (bar the decimal point) over a few days.

Figured as much!

Here's to the decimal point continuing to move to the right!

[JulianPH]

GR_TVR said:

JulianPH said:

It was just a coincidence in the numbers (bar the decimal point) over a few days.

Figured as much!

Here's to the decimal point continuing to move to the right!

Absolutely. Those pesky decimal points!

[JulianPH]

Whilst I am aware that there is a lot of focus on PH Recovery right now, I thought I would just highlight that our most popular investment here, PH Equity, is now up 19.32% since it launched to retail clients mid November.

This return includes the market crashes resulting from CV19.

Obviously I need to say that past performance is not an indication of future returns, and with all investments your capital is at risk, but it does just keep doing what it was designed to do and we will all do our very best to continue this.

Have a great weekend, I am going to have a cheeky lunchtime beer and chill out!

[Burwood]

mate we need to get you one of these on days like this.

[Burwood]

mate we need to get you one of these on days like this. I opted for the one without a beer holder-would send the wrong message completely

[JulianPH]

Burwood said:

mate we need to get you one of these on days like this. I opted for the one without a beer holder-would send the wrong message completely

Absolute genius mate!

[Gallons Per Mile]

Burwood, your Photoshop skills are superb. The alterations are almost imperceptible...

[Mrkevuk]

Hi Guys

Im a newish customer. I have a DD set up for monthly contributions all working fine. I want to put £6000 in as a one off DD. When I do this and get to the final page showing me the summary the DD shows as £6.00. I have tried 3 times. Any help or should I just do a bank transfer , but not sure how.
Thanks

[Gallons Per Mile]

You need to do a bank transfer for a one-off contribution. When you go to add contributions you should see the option to do a one-off by bank transfer. Follow the instructions from IM, then log in to your online banking and make the transfer using the details provided.

[PorkInsider]

It is possible to do a one-off DD - I funded my IM ISA that way initially - but maybe you can only to do that for the start up?

[anonymous-user]

Have a general question about investing in funds outside of ISA wrapper if I may?

Recently sold a property I was renting out. Proceeds have been divided into various pots, being "pay down current mortgage", "top up ISA" and "cash reserve", but I find myself with a surplus I'm not entirely sure what to do with. I have the level of cash reserves I'm comfortable with (irrespective of interest rate), and ISA allowance is fully used up, so I'm musing on whether to invest in funds outside the ISA as a means of (hopefully) pre-building a lump sum to form next year's allowance. ISA contributions to this point have been 50:50 cash and shares, but given savings rates, looking to pivot more towards shares from now on.

Weighing up whether to invest in equity or bond funds (or mixture of both), and just trying to make sure I have a good understanding of things to consider, specifically from tax point of view. Not asking for advice on which choice to make or on specific funds!

My understanding of tax implications:-

Interest from bond funds count as income and taxed at prevailing rate
Dividends from equity funds tax free up to annual allowance of £2000
Gain on sale of either fund subject to CGT
Considerations around fund domicile - would only be UK domiciled funds
Not quite sure how accumulation units are treated, so would likely be income funds

Have used 2020/21 CGT allowance on sale of property, so any funds built wouldn't be swept to ISA until new tax year to avoid any gains generating a liability.

Obviously lots of other things to consider, not least risk appetite, coronavirus impact and Brexit, but does that at least capture the basic tax implications I need to be aware of? Thanks!

[JulianPH]

Mrkevuk said:

Hi Guys

Im a newish customer. I have a DD set up for monthly contributions all working fine. I want to put £6000 in as a one off DD. When I do this and get to the final page showing me the summary the DD shows as £6.00. I have tried 3 times. Any help or should I just do a bank transfer , but not sure how.
Thanks

Hi Kevin

Welcome to IM Private Clients and I hope you enjoy being part of our club here!

There must be a glitch in the software and I will have the team fix this first thing this morning. Thanks for letting me know.

If you want to get into your selected investments(s) more quickly then a bank transfer is the fastest way.

For any assistance please contact Nik ([e-mail]) or Rosie ([e-mail])

Cheers

Julian

[JulianPH]

Gallons Per Mile said:

You need to do a bank transfer for a one-off contribution. When you go to add contributions you should see the option to do a one-off by bank transfer. Follow the instructions from IM, then log in to your online banking and make the transfer using the details provided.

Morning mate, you can also do it via a one-off DD, but it not as efficient.

Thanks for your response, this is the quickest way of doing it.

Cheers

[JulianPH]

PorkInsider said:

It is possible to do a one-off DD - I funded my IM ISA that way initially - but maybe you can only to do that for the start up?

Morning mate

Yes - and you can do it whenever you like, not just at start up.

Obviously some sort of software glitch is removing the zeros though. It will be fixed this morning.

Cheers

[JulianPH]

Lentilist said:

Have a general question about investing in funds outside of ISA wrapper if I may?

Recently sold a property I was renting out. Proceeds have been divided into various pots, being "pay down current mortgage", "top up ISA" and "cash reserve", but I find myself with a surplus I'm not entirely sure what to do with. I have the level of cash reserves I'm comfortable with (irrespective of interest rate), and ISA allowance is fully used up, so I'm musing on whether to invest in funds outside the ISA as a means of (hopefully) pre-building a lump sum to form next year's allowance. ISA contributions to this point have been 50:50 cash and shares, but given savings rates, looking to pivot more towards shares from now on.

Weighing up whether to invest in equity or bond funds (or mixture of both), and just trying to make sure I have a good understanding of things to consider, specifically from tax point of view. Not asking for advice on which choice to make or on specific funds!

My understanding of tax implications:-

Interest from bond funds count as income and taxed at prevailing rate
Dividends from equity funds tax free up to annual allowance of £2000
Gain on sale of either fund subject to CGT
Considerations around fund domicile - would only be UK domiciled funds
Not quite sure how accumulation units are treated, so would likely be income funds

Have used 2020/21 CGT allowance on sale of property, so any funds built wouldn't be swept to ISA until new tax year to avoid any gains generating a liability.

Obviously lots of other things to consider, not least risk appetite, coronavirus impact and Brexit, but does that at least capture the basic tax implications I need to be aware of? Thanks!

Morning Lentilist

You have pretty much summed it all up in your post.

The income on accumulation units is treated in exactly the same way as income units (it is classed as a notional distribution).

You will receive a tax certificate at the end of the financial year showing you this so you can report it to HMRC properly.

Whilst you have already used your 2020/2021 CGT allowance, if you move this money into next year's ISA allowance then your sale will, by definition, be in the 2021/2022 tax year and therefore you will have a new CGT allowance for that year.

Also remember that any reinvested dividends need to be deducted from any growth when it come to CGT.

You have covered all of the other major options, but a pension contribution might be something you may/may not want to look at as not only will this grow free of income tax and CGT, you will also get a return of any income tax on such an investment.

You seem to have a very good handle on this but if you would like to chat things through with someone please feel free to contact Nik ([e-mail]) and he will be happy to help, or post anything further here.

Cheers

Julian

[911pleb]

JulianPH said:

Obviously some sort of software glitch is removing the zeros though.

Can you create a glitch that adds them instead?

[JulianPH]

911pleb said:

JulianPH said:

Obviously some sort of software glitch is removing the zeros though.

Can you create a glitch that adds them instead?

[Gallons Per Mile]

JulianPH said:

Morning mate, you can also do it via a one-off DD, but it not as efficient.

Thanks for your response, this is the quickest way of doing it.

Cheers

Thanks Julian, I didn't know you could do a one -off DD too.

Speaking on behalf of everyone else on here, pleeeease create that glitch to add zeros instead, but stick in on our plan values