Intelligent Money - your investment questions answered
Discussion
Mazinbrum said:
Simpo Two said:
Mazinbrum said:
Simpo Two said:
Simpo Investments' new Guatemalan Trouser Fund is ideally poised for growth... and you get a free Parker Pen just for joining. Discount for cash.
Can we invest in red trousers?
Simpo Two said:
pingu393 said:
As the number of funds in PHR get lower, these "blips" will get bigger. Get the sick bags ready - a bumpy ride ahead. I'm still confident that it will be net gains, though.
I think it means that the finger over the 'sell' button will just have to be very quick. Perhaps it can be set up to auto-sell if the target price is reached? That would save JPH having to hunch over his PC 24/7 
If I sold tonight, it might not be until Wednesday/Thursday that the sale went through. A lot can happen in three or four days!!
renmure said:
Carbon Sasquatch said:
I must be doing they IM thing all wrong......
I thought the whole point was to give them your money and not give it another thought for a few years.
I hadn't realised that I was supposed to behave like a day trader and second guess every decision they make.
No, but you've possibly not quite got the idea of PHR where you actually do have to decide what to do with your own money when stocks are sold down because nobody else is going to do it for you, Unless you want it sitting as cash I suppose.I thought the whole point was to give them your money and not give it another thought for a few years.
I hadn't realised that I was supposed to behave like a day trader and second guess every decision they make.
Carbon Sasquatch said:
renmure said:
Carbon Sasquatch said:
I must be doing they IM thing all wrong......
I thought the whole point was to give them your money and not give it another thought for a few years.
I hadn't realised that I was supposed to behave like a day trader and second guess every decision they make.
No, but you've possibly not quite got the idea of PHR where you actually do have to decide what to do with your own money when stocks are sold down because nobody else is going to do it for you, Unless you want it sitting as cash I suppose.I thought the whole point was to give them your money and not give it another thought for a few years.
I hadn't realised that I was supposed to behave like a day trader and second guess every decision they make.
Carbon Sasquatch said:
You're quite right, I hadn't appreciated that. I'm relatively late to the IM party and only just opened a SIPP & ISA a couple of weeks ago. Some of it is headed for PHR & I hadn't realised that wasn't a fully managed fund. My fault for being typically lazy & just opening online & transferring money in I suppose.
PHR is a typical in that unlike all of the other IM funds it was created to take advantage of a very specific situation where, due to the CV situation, specifically selected stocks were seen to be undervalued when purchased & had a good scope for recovering well in a reasonably short time frame. The aim was that each would be sold off when it was felt they had gained a sensible amount & then the proceeds returned as cash which each investor could do with as they wish, be it reinvest or move it elsewhere. None of the other funds operate like this.It's a short lived fund & will probably be gone in a few months so all the excitement will be over, at least until JPH opens the Capitalist Let's Do Evil fund or the Technology one.
pingu393 said:
The "flash-to-bang" of JPH's "sell instruction" is much quicker than ours, so I'm leaving the selling to him.
If I sold tonight, it might not be until Wednesday/Thursday that the sale went through. A lot can happen in three or four days!!
Oh indeed, I've been caught like that before. I meant JPH's sell button not ours If I sold tonight, it might not be until Wednesday/Thursday that the sale went through. A lot can happen in three or four days!!
Carbon Sasquatch said:
I must be doing they IM thing all wrong......
I thought the whole point was to give them your money and not give it another thought for a few years.
I hadn't realised that I was supposed to behave like a day trader and second guess every decision they make.
That is certainly the case with everything else we offer (fire and forget), but PHR is very different and all about taking advantage of the current opportunity we have found ourselves in with CV19 stock falls.I thought the whole point was to give them your money and not give it another thought for a few years.
I hadn't realised that I was supposed to behave like a day trader and second guess every decision they make.
When each stock hits its target level we sell and return the the money to your cash account and then you can place it where you like. As far as I am aware we are the only provider to offer this (as obviously we stop earning our annual fee on anything we sell down, and the investment industry is not very keen on this sort of thing!).
So PHR is very different our other investments.
Cheers
Julian
Carbon Sasquatch said:
You're quite right, I hadn't appreciated that. I'm relatively late to the IM party and only just opened a SIPP & ISA a couple of weeks ago. Some of it is headed for PHR & I hadn't realised that wasn't a fully managed fund. My fault for being typically lazy & just opening online & transferring money in I suppose.
Sorry, I should have read all of the other answers before posting my response above.It is as fully managed as it can be, but (as other have said) it is aiming for a shorter term advantage from the current situation and when hitting this returning your cash to you for you to decide where to invest this increased pot of money.
Phooey said:
Q. What are the rules around putting commercial property into a SIPP?
Cheers
A. It has to purchased at market value and your SIPP can borrow up to 50% of the SIPP value towards the purchase price.Cheers
It is a sale (the current owner gets the proceeds of the sale price - whether that is you personally or your business) and so your SIPP (the buyer) will have to pay the normal costs involved with any property.
After that you will have to pay market rent directly into your SIPP, which can be offset against tax.
All growth and income resulting from the property are also now tax free.
Give me a shout if you would like to chat over it!
Cheers mate
JulianPH said:
A. It has to purchased at market value and your SIPP can borrow up to 50% of the SIPP value towards the purchase price.
It is a sale (the current owner gets the proceeds of the sale price - whether that is you personally or your business) and so your SIPP (the buyer) will have to pay the normal costs involved with any property.
After that you will have to pay market rent directly into your SIPP, which can be offset against tax.
All growth and income resulting from the property are also now tax free.
Give me a shout if you would like to chat over it!
Cheers mate
Thanks mate for the answer It is a sale (the current owner gets the proceeds of the sale price - whether that is you personally or your business) and so your SIPP (the buyer) will have to pay the normal costs involved with any property.
After that you will have to pay market rent directly into your SIPP, which can be offset against tax.
All growth and income resulting from the property are also now tax free.
Give me a shout if you would like to chat over it!
Cheers mate
So, for example - if a commercial property was for sale for 500k+ VAT, how much would you need in a SIPP to be able to purchase the property, is it relatively easy to get a mortgage via a SIPP, and how does the VAT element work - I assume you'd also need to initially fund this bit too and then reclaim it?
I can't find a good (easy) enough explanation online hence all the questions
Hi Guys, very long time lurker here. I have dropped in and out over the years observing many times but haven't had the need for advice on anything or the knowledge to offer it , but need a little now regarding pensions.
I have recently taken a kind of voluntary redundancy, because of the timing my income and the taxable amount over £30k is likely to be in the region of £55,000. To minimise the taxation I want to bring this below £50k and realise a way of doing this is to invest into a SIPP.
Am I right in thinking if I invest £5000 of my cash it takes my earnings below the 40% threshold and my investment will somehow be worth £6000 through the tax man adding £1000 and my tax paid through self assessment will drop by £1000?
I have never intended to have a personal pension as I was working for the NHS so have 20 odd years in the 95 scheme plus nearly 6 in the new scheme. I also have some BTL's so I don't intend to pay anymore into it, I am looking to take it out when I reach the allowable age which I think for me maybe 58 as I am currently 47.
Discussed this with a neighbour I see dog walking who is a financial advisor and he suggested Pension B but there seems to be better options. Is this amount too little to invest in intelligent money?
Thanks in advance for any advice.
I have recently taken a kind of voluntary redundancy, because of the timing my income and the taxable amount over £30k is likely to be in the region of £55,000. To minimise the taxation I want to bring this below £50k and realise a way of doing this is to invest into a SIPP.
Am I right in thinking if I invest £5000 of my cash it takes my earnings below the 40% threshold and my investment will somehow be worth £6000 through the tax man adding £1000 and my tax paid through self assessment will drop by £1000?
I have never intended to have a personal pension as I was working for the NHS so have 20 odd years in the 95 scheme plus nearly 6 in the new scheme. I also have some BTL's so I don't intend to pay anymore into it, I am looking to take it out when I reach the allowable age which I think for me maybe 58 as I am currently 47.
Discussed this with a neighbour I see dog walking who is a financial advisor and he suggested Pension B but there seems to be better options. Is this amount too little to invest in intelligent money?
Thanks in advance for any advice.
Phooey said:
Thanks mate for the answer
So, for example - if a commercial property was for sale for 500k+ VAT, how much would you need in a SIPP to be able to purchase the property, is it relatively easy to get a mortgage via a SIPP, and how does the VAT element work - I assume you'd also need to initially fund this bit too and then reclaim it?
I can't find a good (easy) enough explanation online hence all the questions
Hi mateSo, for example - if a commercial property was for sale for 500k+ VAT, how much would you need in a SIPP to be able to purchase the property, is it relatively easy to get a mortgage via a SIPP, and how does the VAT element work - I assume you'd also need to initially fund this bit too and then reclaim it?
I can't find a good (easy) enough explanation online hence all the questions
I'll get Mel onto the VAT side tomorrow (her area, not mine), but assuming the total price is £600k then you would need £400k in your SIPP to get the £200k mortgage. I believe your SIPP can reclaim the VAT back, but will leave this to one of our experts in property transactions (headed up by Mel and Leanne).
As the trustee we do all the mortgage work for you and have a panel we work with all the time, but you can always put forward your own preference and we can use them.
It can be complex, but our job is to make is straightforward for you.
Just ask away, that is what we are here for!
JulianPH said:
Hi mate
I'll get Mel onto the VAT side tomorrow (her area, not mine), but assuming the total price is £600k then you would need £400k in your SIPP to get the £200k mortgage. I believe your SIPP can reclaim the VAT back, but will leave this to one of our experts in property transactions (headed up by Mel and Leanne).
As the trustee we do all the mortgage work for you and have a panel we work with all the time, but you can always put forward your own preference and we can use them.
It can be complex, but our job is to make is straightforward for you.
Just ask away, that is what we are here for!
Cheers. At this point in time it's just for my own understanding - it's something I may look into in the future so just need to know how it more or less works. Ta mateI'll get Mel onto the VAT side tomorrow (her area, not mine), but assuming the total price is £600k then you would need £400k in your SIPP to get the £200k mortgage. I believe your SIPP can reclaim the VAT back, but will leave this to one of our experts in property transactions (headed up by Mel and Leanne).
As the trustee we do all the mortgage work for you and have a panel we work with all the time, but you can always put forward your own preference and we can use them.
It can be complex, but our job is to make is straightforward for you.
Just ask away, that is what we are here for!
Muck Dodge said:
Hi Guys, very long time lurker here. I have dropped in and out over the years observing many times but haven't had the need for advice on anything or the knowledge to offer it , but need a little now regarding pensions.
I have recently taken a kind of voluntary redundancy, because of the timing my income and the taxable amount over £30k is likely to be in the region of £55,000. To minimise the taxation I want to bring this below £50k and realise a way of doing this is to invest into a SIPP.
Am I right in thinking if I invest £5000 of my cash it takes my earnings below the 40% threshold and my investment will somehow be worth £6000 through the tax man adding £1000 and my tax paid through self assessment will drop by £1000?
I have never intended to have a personal pension as I was working for the NHS so have 20 odd years in the 95 scheme plus nearly 6 in the new scheme. I also have some BTL's so I don't intend to pay anymore into it, I am looking to take it out when I reach the allowable age which I think for me maybe 58 as I am currently 47.
Discussed this with a neighbour I see dog walking who is a financial advisor and he suggested Pension B but there seems to be better options. Is this amount too little to invest in intelligent money?
Thanks in advance for any advice.
Hi Muck DodgeI have recently taken a kind of voluntary redundancy, because of the timing my income and the taxable amount over £30k is likely to be in the region of £55,000. To minimise the taxation I want to bring this below £50k and realise a way of doing this is to invest into a SIPP.
Am I right in thinking if I invest £5000 of my cash it takes my earnings below the 40% threshold and my investment will somehow be worth £6000 through the tax man adding £1000 and my tax paid through self assessment will drop by £1000?
I have never intended to have a personal pension as I was working for the NHS so have 20 odd years in the 95 scheme plus nearly 6 in the new scheme. I also have some BTL's so I don't intend to pay anymore into it, I am looking to take it out when I reach the allowable age which I think for me maybe 58 as I am currently 47.
Discussed this with a neighbour I see dog walking who is a financial advisor and he suggested Pension B but there seems to be better options. Is this amount too little to invest in intelligent money?
Thanks in advance for any advice.
Over 90% of our clients here a lurkers, the other 10% (including myself) enjoy the banter side of things!
Yes, you are correct, a SIPP/Pension contribution of £5,000 would not be taxable at the higher rate going in, but after your 25% tax free allowance would be taxed at your marginal rate(s) on the way out.
If the cash is already in your hands you would make a £4,000 contribution that would automatically be grossed up to £5,000 and then reclaim a further £1,000 from HMRC through your self assessment.
It is worth you having a chat with Nik (nik.burrows@intelligentmoney.com) as in a previous life he was an optician and works with many NHS practitioners on exactly this.
There is no minimum for PHers.
Cheers
Julian
Carbon Sasquatch said:
I must be doing they IM thing all wrong......
I thought the whole point was to give them your money and not give it another thought for a few years.
I hadn't realised that I was supposed to behave like a day trader and second guess every decision they make.
Not sure what you mean on “second guess every decision they make”I thought the whole point was to give them your money and not give it another thought for a few years.
I hadn't realised that I was supposed to behave like a day trader and second guess every decision they make.
As IM and others have said, PHR is a unique fund and on investing in the fund it was clear that shares were purchased and would be sold down once reaching a certain % increase.
Have been in since day one and can say that there has been no requirement to “second guess anything”, an e mail is sent advising you that IM are selling a specific share and when the cash will be in your fund accounts.
You can then either, leave in cash, reinvest in PHR or any other IM fund or remove the cash (obviously pensions would be an exception depending the individuals circumstances)
It has been pretty easy and has been an enjoyable & different investment experience for me.
No need to behave like a day trader whatsoever, IM manage and deal with everything regarding the purchase / selling of the shares.
tighnamara said:
Not sure what you mean on “second guess every decision they make”
As IM and others have said, PHR is a unique fund and on investing in the fund it was clear that shares were purchased and would be sold down once reaching a certain % increase.
Have been in since day one and can say that there has been no requirement to “second guess anything”, an e mail is sent advising you that IM are selling a specific share and when the cash will be in your fund accounts.
You can then either, leave in cash, reinvest in PHR or any other IM fund or remove the cash (obviously pensions would be an exception depending the individuals circumstances)
It has been pretty easy and has been an enjoyable & different investment experience for me.
No need to behave like a day trader whatsoever, IM manage and deal with everything regarding the purchase / selling of the shares.
Cheers mate, that sums it up very well!As IM and others have said, PHR is a unique fund and on investing in the fund it was clear that shares were purchased and would be sold down once reaching a certain % increase.
Have been in since day one and can say that there has been no requirement to “second guess anything”, an e mail is sent advising you that IM are selling a specific share and when the cash will be in your fund accounts.
You can then either, leave in cash, reinvest in PHR or any other IM fund or remove the cash (obviously pensions would be an exception depending the individuals circumstances)
It has been pretty easy and has been an enjoyable & different investment experience for me.
No need to behave like a day trader whatsoever, IM manage and deal with everything regarding the purchase / selling of the shares.
Hi all, I am considering transferring a junior sipp to IM after having a problem with my current provider and I just want to check that this problem will be resolved by using IM.
I set up the junior sipp around 5 years ago shortly after the birth my son and pay in £240 net per month so it gets grossed up to £300 by the £60 from the taxman. I wanted to just set this up and forget about it so I chose the cheapest global equity tracker they had for the contributions.
I then did forget about it until recently. I logged on recently and there was a large chuck of the funds left in cash. After querying it, it was explained to me that despite my instructions, only the net amounts have been invested each month, with the tax rebates all being left in cash. Apparently the only way I could have invested these funds each month would have been to log on each month and set up a trade which isn't very practical for the sake of £60.
I am going to raise a complaint with them about this as this wasn't explained at outset and I expect I have lost out on some investment returns. But my question for IM is, if I set up an instruction for the gross contribution to be invested in a certain fund or funds, do IM invest both the net amount and the tax rebate without me having to do anything further?
Thanks for your help.
Phil
I set up the junior sipp around 5 years ago shortly after the birth my son and pay in £240 net per month so it gets grossed up to £300 by the £60 from the taxman. I wanted to just set this up and forget about it so I chose the cheapest global equity tracker they had for the contributions.
I then did forget about it until recently. I logged on recently and there was a large chuck of the funds left in cash. After querying it, it was explained to me that despite my instructions, only the net amounts have been invested each month, with the tax rebates all being left in cash. Apparently the only way I could have invested these funds each month would have been to log on each month and set up a trade which isn't very practical for the sake of £60.
I am going to raise a complaint with them about this as this wasn't explained at outset and I expect I have lost out on some investment returns. But my question for IM is, if I set up an instruction for the gross contribution to be invested in a certain fund or funds, do IM invest both the net amount and the tax rebate without me having to do anything further?
Thanks for your help.
Phil
Muck Dodge said:
Hi Guys, very long time lurker here. I have dropped in and out over the years observing many times but haven't had the need for advice on anything or the knowledge to offer it , but need a little now regarding pensions.
<snip>
Discussed this with a neighbour I see dog walking who is a financial advisor and he suggested Pension B but there seems to be better options. Is this amount too little to invest in intelligent money?
Thanks in advance for any advice.
Over 13 years, first post - that is a cracking example of patience <snip>
Discussed this with a neighbour I see dog walking who is a financial advisor and he suggested Pension B but there seems to be better options. Is this amount too little to invest in intelligent money?
Thanks in advance for any advice.
Short answer from me, as a happy client: defo not too small, MrsMikeIOW currently has a sub-10k amount in a pension with IM, just to try to take advantage of the "put £2,880 in, Govt take it up to £3,600" for a non-wage-earner like her
Phooey said:
JulianPH said:
Hi mate
I'll get Mel onto the VAT side tomorrow (her area, not mine), but assuming the total price is £600k then you would need £400k in your SIPP to get the £200k mortgage. I believe your SIPP can reclaim the VAT back, but will leave this to one of our experts in property transactions (headed up by Mel and Leanne).
As the trustee we do all the mortgage work for you and have a panel we work with all the time, but you can always put forward your own preference and we can use them.
It can be complex, but our job is to make is straightforward for you.
Just ask away, that is what we are here for!
Cheers. At this point in time it's just for my own understanding - it's something I may look into in the future so just need to know how it more or less works. Ta mateI'll get Mel onto the VAT side tomorrow (her area, not mine), but assuming the total price is £600k then you would need £400k in your SIPP to get the £200k mortgage. I believe your SIPP can reclaim the VAT back, but will leave this to one of our experts in property transactions (headed up by Mel and Leanne).
As the trustee we do all the mortgage work for you and have a panel we work with all the time, but you can always put forward your own preference and we can use them.
It can be complex, but our job is to make is straightforward for you.
Just ask away, that is what we are here for!
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