Current Portfolio - Sell?
Discussion
Bit of a newb to this type of thing so please bear with my ignorance. I have had a recent inheritance, 400K of which is in a portfolio of what I believe is Cat 2 & Cat 3 shares. My sister has already asked for her 400K, to be liquidated and she intends to invest elsewhere, she already has gold and intends to buy more plus other investments. She is urging me at the very least to liquidate my half as she is convinced that I am going to lose a large proportion of it. What do I do? She suggested that rather than leave ir as capital sitting in a std bank account I should buy other currency, Is this a good idea and can it be done through my HSBC premier account?
This is all totally alien to me so all help gratefully received.
This is all totally alien to me so all help gratefully received.
Bad day to sell
At that level you can skip the High St IFA and get good assistance from a bank, they will assign someone to help you.
First thing to do would be to look at the shares, if your relative amassed a multi million portfolio (I'm assuming you and your sister were not the only benificiaries) then he/she was doing something right. The shares are probably better than you think.
No disrepect to you Sister, but gold is a tad expensive at present.
Also your cost basis for taxation will that prepared by the executor (his valuation), no doubt if you sold today you would have a loss and nowhere to offset it. If you reinvested again (today) you would establish a new cost basis of perhaps 375K or less and open yourself up to uness taxation in the future.
Do get help, no rush.
At that level you can skip the High St IFA and get good assistance from a bank, they will assign someone to help you.
First thing to do would be to look at the shares, if your relative amassed a multi million portfolio (I'm assuming you and your sister were not the only benificiaries) then he/she was doing something right. The shares are probably better than you think.
No disrepect to you Sister, but gold is a tad expensive at present.
Also your cost basis for taxation will that prepared by the executor (his valuation), no doubt if you sold today you would have a loss and nowhere to offset it. If you reinvested again (today) you would establish a new cost basis of perhaps 375K or less and open yourself up to uness taxation in the future.
Do get help, no rush.
Just a bit of clarity Jeff, and I am assuming we are talking about the UK, ignore me if not:
The only "High Street" IFAs that exist today are with Banks, and they most certainly are not the people to go to unless you want to be shoe-horned in to a one size fits all solution.
The CGT base cost for these would be the date of death of the deceased, so its unlikely (although possible) that there are large accrued capitals gains, so I would not see a great need to sell to re-base for CGT purposes.
The only "High Street" IFAs that exist today are with Banks, and they most certainly are not the people to go to unless you want to be shoe-horned in to a one size fits all solution.
The CGT base cost for these would be the date of death of the deceased, so its unlikely (although possible) that there are large accrued capitals gains, so I would not see a great need to sell to re-base for CGT purposes.
TFP said:
Just a bit of clarity Jeff, and I am assuming we are talking about the UK, ignore me if not:
The only "High Street" IFAs that exist today are with Banks, and they most certainly are not the people to go to unless you want to be shoe-horned in to a one size fits all solution.
The CGT base cost for these would be the date of death of the deceased, so its unlikely (although possible) that there are large accrued capitals gains, so I would not see a great need to sell to re-base for CGT purposes.
I think we are on the same page, I was assuming there would be loss not a gain from valuation. Therefore he could create a lower cost basis.(by an untimely sale) Not good.The only "High Street" IFAs that exist today are with Banks, and they most certainly are not the people to go to unless you want to be shoe-horned in to a one size fits all solution.
The CGT base cost for these would be the date of death of the deceased, so its unlikely (although possible) that there are large accrued capitals gains, so I would not see a great need to sell to re-base for CGT purposes.
I'm a Brit in the US, I didn't realise the only High St IFA were with the banks now. I was thinking along the lines of the Wealth Management Depts of some banks. He could just squeak in. Not sure of limits in UK anymore.
Speak to more than one advisor...ask them what they would recommend and ask them for their fundamental reasoning for doing so. Also ask to see records of how either their model portfolio's or their recommended funds have performed over say the last year and five years both outright and against benchmarks.
I wouldn't go to a High St Bank simply because their products are generally not competitive....with so many lazy/captive customers they simply don't have to either offer the best advice or be the cheapest.
The advice needs to be based on your circumstances....none of us know that so maybe your sister is right be advising you to sell. I assume by Cat 2 and 3 you mean small or mid-cap shares ? These are obviously higher risk but also potentially higher reward.
My only advice is that doing nothing is bad and should act with the utmost haste. £400k is a lot of money to have invested in something you don't know very much about.
I wouldn't go to a High St Bank simply because their products are generally not competitive....with so many lazy/captive customers they simply don't have to either offer the best advice or be the cheapest.
The advice needs to be based on your circumstances....none of us know that so maybe your sister is right be advising you to sell. I assume by Cat 2 and 3 you mean small or mid-cap shares ? These are obviously higher risk but also potentially higher reward.
My only advice is that doing nothing is bad and should act with the utmost haste. £400k is a lot of money to have invested in something you don't know very much about.
S1_RS said:
Bit of a newb to this type of thing so please bear with my ignorance. I have had a recent inheritance, 400K of which is in a portfolio of what I believe is Cat 2 & Cat 3 shares. My sister has already asked for her 400K, to be liquidated and she intends to invest elsewhere, she already has gold and intends to buy more plus other investments. She is urging me at the very least to liquidate my half as she is convinced that I am going to lose a large proportion of it. What do I do? She suggested that rather than leave ir as capital sitting in a std bank account I should buy other currency, Is this a good idea and can it be done through my HSBC premier account?
This is all totally alien to me so all help gratefully received.
400k of which - so we are assuming this isn't all of your inheritance. Hence thee may be other assets to offset losses against.This is all totally alien to me so all help gratefully received.
As for what to do with it based on what you are saying above:
1. Gold etc ae at all time highs, arguably as a result of people's flight to perceived safety. Happens every time. What also happens is that once the crisis passes, the underlying prices come back down and so do the stocks. So long term, you are buying at the high point and selling at the low point in the future.
2. The GBP (assuming this is your inheritance) is close to all tie lows also. Swapping into other currency is arguably going to give you a loss also in the longer term, and still leaves you with the question of what to do with the money. you're no better off, you've just added a layer of complexity for no real gain.
To do it properly, you'll need to go through individual stocks and look at recent performance and reasons behind this. You can then decide whether to sell them individually or hold onto them. If they've all been hammered recently for no other reason than everything else is going downhill too, then why would you sell now and crystalise a loss??
Arguably, with everything going downhill, you should be selling the ones that are holding up and reinvesting into others that are at all-time lows simply due to market sentiment....
All comes down to doing your homework.
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