I'm with Golfie, go for growth and my Structured products currently look healthier than 4% @golfaddick !
Can you have an ISA or do you have an equivalent in your country?
PS £25 for me on the PB's, £100 for Mrs R7Lee and that bl00dy father in law of mine wins again with 2x £25! Nothing for the kids.
Nope, not enough retail investors in this country yet. But the tax regime for investments is relatively benign too. The govt issued some six year retail bonds with an interest rate of inflation plus 0.5%. I did buy some and for a while that looked like nothing more than a patriotic gesture in return for my citizenship, bit for most of this year inflation here has been running at 3%, so suddenly they look OK and I wish I'd bought more. I also have done well with a 2 year property bond recommended by my accountants, 7%, interest paid half yearly - but the borrower was sos successful that it paid back 66% of the debt at the end of the first year. Otherwise not much locally worth getting into. Prague property is experiencing the same sort of bubble that London has seen but I think that ship has already sailed and I just can't be arsed with looking after another property at this stage. There was a time when I was talking about joining with my sister in looking for a place in south-west France, but YouKnowWhat has put paid to that little dream. So boring income investment it is, then...
I certainly wasn't thinking of relying on equity stocks to provide the income I need - after so many years of swerving stocks that would be bizarre at this stage of my life, but I thought that a small portfolio of solid dividend payers might be worth having as part of the overall approach.
I'm with Golfie, go for growth and my Structured products currently look healthier than 4% @golfaddick !
Can you have an ISA or do you have an equivalent in your country?
PS £25 for me on the PB's, £100 for Mrs R7Lee and that bl00dy father in law of mine wins again with 2x £25! Nothing for the kids.
Nope, not enough retail investors in this country yet. But the tax regime for investments is relatively benign too. The govt issued some six year retail bonds with an interest rate of inflation plus 0.5%. I did buy some and for a while that looked like nothing more than a patriotic gesture in return for my citizenship, bit for most of this year inflation here has been running at 3%, so suddenly they look OK and I wish I'd bought more. I also have done well with a 2 year property bond recommended by my accountants, 7%, interest paid half yearly - but the borrower was sos successful that it paid back 66% of the debt at the end of the first year. Otherwise not much locally worth getting into. Prague property is experiencing the same sort of bubble that London has seen but I think that ship has already sailed and I just can't be arsed with looking after another property at this stage. There was a time when I was talking about joining with my sister in looking for a place in south-west France, but YouKnowWhat has put paid to that little dream. So boring income investment it is, then...
I certainly wasn't thinking of relying on equity stocks to provide the income I need - after so many years of swerving stocks that would be bizarre at this stage of my life, but I thought that a small portfolio of solid dividend payers might be worth having as part of the overall approach.
The potential problem with`Solid dividend payers' is the share price is directly linked of course, so if they go bad not only does the dividend disappear or reduce so does your capital value.
I'll leave mine in mostly growth funds when I start to retire/drawdown. Chasing income isn't needed if you continue to, on average, grow your overall pot by at least inflation. Remember you can't take it with you so at some point spending capital is no bad thing.
I also mentioned a while ago that I was looking at moving my DB Pension out to a drawdown and was going through the process of advice to do that. Got the OK on the 23rd June and then took a week to get the funds transferred. Handed in my “resignation with benefits” on the 30th. Still have just under 2 months of work, but the SIPP has almost made back the fee for the advice already and I am really looking forward to closing the work laptop for the last time! 😁
2 x £25 for me, 1 x £25 for mrs ltgtr. 17 wins between us this year albeit just £525 in total but nice to get. I’ve had 3 blank months this year, mrs ltgtr 2 blank months. You just hope it evens up over the year, that and get a big prize one day.
Thought I'd throw this open, as it should be of interest to a fair few older bods. Investing for income.
I'm finally selling my UK house, which means I will no longer have the rental income it provided. We are in no rush to invest in property elsewhere so I would like to re-invest the proceeds mainly in investments that generate income. While I'll be more comfortable with funds - and for this I'm expecting great advice from my newly appointed IFA - a buddy locally who really knows his stuff financially, shared details of his share portfolio which generates decent income..some up to 8% pa.
So on the basis that *nobody is offering advice* I thought I'd share those equities he mentioned, and ask if anyone else cares to share any ideas for reliable income generating equities (or anything else).
He does well out of tobacco, which I'm not going to touch; he has shares in Philip Morris, the Altria parent, and the local Czech operation, Tabak.
He has a couple in the banking sector even though he has misgivings about banks as businesses : Citigroup and Wells Fargo
He invests in two of the actual companies whose business is funds ( I like this idea): Schroders and Jupiter
He's got IBM, typical unfashionable but rock solid tech.
And he has AT&T although he admits he's not sure if this will be a good choice.
Hopefully this is worth a general discussion, and I'll certainly be interested if any other punters have some holdings mainly for income.
Surprised you aren’t seeking advice over on the Crypto thread
Finally £25 for me this month from the PBs. Junior also got £25 but nothing for Mrs Chaz.
Thought I'd throw this open, as it should be of interest to a fair few older bods. Investing for income.
I'm finally selling my UK house, which means I will no longer have the rental income it provided. We are in no rush to invest in property elsewhere so I would like to re-invest the proceeds mainly in investments that generate income. While I'll be more comfortable with funds - and for this I'm expecting great advice from my newly appointed IFA - a buddy locally who really knows his stuff financially, shared details of his share portfolio which generates decent income..some up to 8% pa.
So on the basis that *nobody is offering advice* I thought I'd share those equities he mentioned, and ask if anyone else cares to share any ideas for reliable income generating equities (or anything else).
He does well out of tobacco, which I'm not going to touch; he has shares in Philip Morris, the Altria parent, and the local Czech operation, Tabak.
He has a couple in the banking sector even though he has misgivings about banks as businesses : Citigroup and Wells Fargo
He invests in two of the actual companies whose business is funds ( I like this idea): Schroders and Jupiter
He's got IBM, typical unfashionable but rock solid tech.
And he has AT&T although he admits he's not sure if this will be a good choice.
Hopefully this is worth a general discussion, and I'll certainly be interested if any other punters have some holdings mainly for income.
Surprised you aren’t seeking advice over on the Crypto thread
Finally £25 for me this month from the PBs. Junior also got £25 but nothing for Mrs Chaz.
Oh man, please don't :-) Had a Zoom call with my nephew last week, he wanted to talk to me about cryptos, get my opinion on something. Or so he said. Didnt want my opinion at all, as soon as he realised I'm still a sceptic, just wanted to convert me by suggesting I could "stake" cryptos. Lordie. 90 minutes later it ended, with me feeling very dispirited and hoping I hadn't been too hard on him. Next day my sister told me that after the call he'd been in upbeat mood and told her he'd had a 'good chat" with me. It's a cult, I tell ye..
Thought I'd throw this open, as it should be of interest to a fair few older bods. Investing for income.
I'm finally selling my UK house, which means I will no longer have the rental income it provided. We are in no rush to invest in property elsewhere so I would like to re-invest the proceeds mainly in investments that generate income. While I'll be more comfortable with funds - and for this I'm expecting great advice from my newly appointed IFA - a buddy locally who really knows his stuff financially, shared details of his share portfolio which generates decent income..some up to 8% pa.
So on the basis that *nobody is offering advice* I thought I'd share those equities he mentioned, and ask if anyone else cares to share any ideas for reliable income generating equities (or anything else).
He does well out of tobacco, which I'm not going to touch; he has shares in Philip Morris, the Altria parent, and the local Czech operation, Tabak.
He has a couple in the banking sector even though he has misgivings about banks as businesses : Citigroup and Wells Fargo
He invests in two of the actual companies whose business is funds ( I like this idea): Schroders and Jupiter
He's got IBM, typical unfashionable but rock solid tech.
And he has AT&T although he admits he's not sure if this will be a good choice.
Hopefully this is worth a general discussion, and I'll certainly be interested if any other punters have some holdings mainly for income.
Surprised you aren’t seeking advice over on the Crypto thread
Finally £25 for me this month from the PBs. Junior also got £25 but nothing for Mrs Chaz.
Oh man, please don't :-) Had a Zoom call with my nephew last week, he wanted to talk to me about cryptos, get my opinion on something. Or so he said. Didnt want my opinion at all, as soon as he realised I'm still a sceptic, just wanted to convert me by suggesting I could "stake" cryptos. Lordie. 90 minutes later it ended, with me feeling very dispirited and hoping I hadn't been too hard on him. Next day my sister told me that after the call he'd been in upbeat mood and told her he'd had a 'good chat" with me. It's a cult, I tell ye..
Well the markets continue to perform. My SIPP (and ISA's) continue to increase and hit all time highs. I'm staggered by my SIPP in the last 12 months TBH where the growth has far exceeded my annual net income, in fact I think it's just passing Gross income, If it continued at that pace I'd hit the LTA in under 3 years time, especially as I still pay in to works pension (just to get my companies matching) but don't expect that level of growth every year.
I transferred provider for my SIPP to Interactive Investor on 17th July 2020 for my non work pension from Fidelity and another transfer in January 2021 and my growth overall is now at just under 24%. Staggering really.
I've sold a few more bits in the SIPP to take/bank some profit. Although it's becoming more difficult to then reinvest but have stuck some in both HSBC Global Strategy and Vanguards similar funds (20/60/80/100 ec) funds. Japan seems undervalued but already have about 10% of the total in there.
So anyone got any great tips on funds!?!
EDIT, just looked based on current values, 80% Stocks (mainly because I just sold about 7% so that's in cash and the rest in bonds).
A list of all my funds in my ii SIPP, obviously some are worldwide so will have some UK in there, I've highlighted the pure UK one's, Maitland has been unbelievable, 60% growth.
BAILLIE GIFFORD & CO AMERICAN B NAV ACC
BAILLIE GIFFORD & CO BAILLIE GIFFORD STRATEGIC BOND B ACC
BAILLIE GIFFORD & CO EUROPEAN B NAV ACC
BAILLIE GIFFORD & CO JAPANESE B NAV ACC
BAILLIE GIFFORD & CO PACIFIC B NAV ACC
BAILLIE GIFFORD & CO POSITIVE CHANGE B ACC
BLACKROCK FUND MANAGERS LTD GOLD & GENERAL D ACC
BNY MELLON FUND MANAGERS LIMITED GLOBAL EMERGING MARKETS INST W GBP ACC
BNY MELLON FUND MANAGERS LIMITED LONG TERM GBL EQTY INSTL W
BNY MELLON FUND MANAGERS LIMITED NEWTON GLOBAL BALANCED W GBP ACC
FIL INVESTMENT SERVICES(UK)LIMITED INDEX WORLD P ACC NAV
FUNDROCK PARTNERS LIMITED FP FORESIGHT UK INFRSTR INCOME A GBP ACC
FUNDSMITH LLP EQUITY I INSTL ACC NAV
HSBC GLOBAL ASSET MANAGEMENT UK GLOBAL STGY CAUTIOUS C ACC NAV
HSBC GLOBAL ASSET MANAGEMENT UK GLOBAL STGY DYNAMIC PTFC ACC NAV
HSBC GLOBAL ASSET MANAGEMENT UK GLOBAL STRATEGY ADVENTUROUS PTF C ACC
HSBC GLOBAL ASSET MANAGEMENT UK GLOBAL STRATEGY BALANCED PORTFOLIO C ACC
HSBC GLOBAL ASSET MANAGEMENT UK JAPAN INDEX C ACC NAV
INVESCO MARKETS PLC INVESCO S&P 500 UCITS ETF A GBP
Thats quite a big list, think I need to trim it down a bit!
I'm not a fan of the HSBC Global strategy funds, nor a great fan of the Vanguard ones either. Vanguard have earned their reputation on being cheap - mainly index trackers which means they are likely to be bang average & certainly wont be stellar performing or catch a trend like BG did last year.
Thought I'd throw this open, as it should be of interest to a fair few older bods. Investing for income.
I'm finally selling my UK house, which means I will no longer have the rental income it provided. We are in no rush to invest in property elsewhere so I would like to re-invest the proceeds mainly in investments that generate income. While I'll be more comfortable with funds - and for this I'm expecting great advice from my newly appointed IFA - a buddy locally who really knows his stuff financially, shared details of his share portfolio which generates decent income..some up to 8% pa.
So on the basis that *nobody is offering advice* I thought I'd share those equities he mentioned, and ask if anyone else cares to share any ideas for reliable income generating equities (or anything else).
He does well out of tobacco, which I'm not going to touch; he has shares in Philip Morris, the Altria parent, and the local Czech operation, Tabak.
He has a couple in the banking sector even though he has misgivings about banks as businesses : Citigroup and Wells Fargo
He invests in two of the actual companies whose business is funds ( I like this idea): Schroders and Jupiter
He's got IBM, typical unfashionable but rock solid tech.
And he has AT&T although he admits he's not sure if this will be a good choice.
Hopefully this is worth a general discussion, and I'll certainly be interested if any other punters have some holdings mainly for income.
Surprised you aren’t seeking advice over on the Crypto thread
Finally £25 for me this month from the PBs. Junior also got £25 but nothing for Mrs Chaz.
Oh man, please don't :-) Had a Zoom call with my nephew last week, he wanted to talk to me about cryptos, get my opinion on something. Or so he said. Didnt want my opinion at all, as soon as he realised I'm still a sceptic, just wanted to convert me by suggesting I could "stake" cryptos. Lordie. 90 minutes later it ended, with me feeling very dispirited and hoping I hadn't been too hard on him. Next day my sister told me that after the call he'd been in upbeat mood and told her he'd had a 'good chat" with me. It's a cult, I tell ye..
Staking stable coins/government issued stable coins is literally going to be the future of banking. I own a small amount of equity in a defi bank that will be launching products later this year with interest rates of 3-5%. This will be possible through staking their stable coins on aave (a defi lending protocol) with 100% of deposits insured by Lloyds of London whilst simultaneously be providing immediate liquidity to blue chip companies by purchasing their invoices.
Thats quite a big list, think I need to trim it down a bit!
I'm not a fan of the HSBC Global strategy funds, nor a great fan of the Vanguard ones either. Vanguard have earned their reputation on being cheap - mainly index trackers which means they are likely to be bang average & certainly wont be stellar performing or catch a trend like BG did last year.
I pay in £240 a month at the moment into this one (ii), mainly to cover child benefit tax on my return although that stops in August so will probably stop paying in after that and just continue to pay into my works one. Thats what's been going into the HSBC one's, so only about £6k in all in those.
The Vanguard I did move some into when I sold from other funds, the lowest is up 6.5% (60 fund), the highest 32% (US one, 4th in fund list) so not bad the others range from 10-26%, not market leading but mid to upper quartile in a performance table I guess and gives a bit of spread.
Part of my issue is not wanting too much in one fund or with one fund manager, maybe over cautious. My fund is now pretty big, I used to say no more than £35k in one fund (don't ask me why, think it goes back to 10% when my fund was £350k) and I've stuck to that to date, although BNY is about to go over and about 7 others are now over £30k. So if I stick to that I'm at 17-18 funds so could roughly half what I have. Maybe I should increase to £50k and trim down a little........
Thats quite a big list, think I need to trim it down a bit!
I'm not a fan of the HSBC Global strategy funds, nor a great fan of the Vanguard ones either. Vanguard have earned their reputation on being cheap - mainly index trackers which means they are likely to be bang average & certainly wont be stellar performing or catch a trend like BG did last year.
I pay in £240 a month at the moment into this one (ii), mainly to cover child benefit tax on my return although that stops in August so will probably stop paying in after that and just continue to pay into my works one. Thats what's been going into the HSBC one's, so only about £6k in all in those.
The Vanguard I did move some into when I sold from other funds, the lowest is up 6.5% (60 fund), the highest 32% (US one, 4th in fund list) so not bad the others range from 10-26%, not market leading but mid to upper quartile in a performance table I guess and gives a bit of spread.
Part of my issue is not wanting too much in one fund or with one fund manager, maybe over cautious. My fund is now pretty big, I used to say no more than £35k in one fund (don't ask me why, think it goes back to 10% when my fund was £350k) and I've stuck to that to date, although BNY is about to go over and about 7 others are now over £30k. So if I stick to that I'm at 17-18 funds so could roughly half what I have. Maybe I should increase to £50k and trim down a little........
As you say, its not the amount in £ that you have in a fund it's the % of the whole portfolio that should be your driver. I usually say no more than 8%-9% in any one fund, and not less than 6% (unless it's a bit of a gamble/token amount or it's a Japanese fund where I normally go 3%) and then 5% in Asia (ex Japan).
Thats quite a big list, think I need to trim it down a bit!
I would echo that.
Even with a portfolio size of £500k I usually limit the number to around 14-15 funds
4 bond 3 UK 2 or 3 US 2 European 2 Asian (usually 1 Japanese & one Asia ex Japan) 1 Property
And maybe 1 commodity fund
Which bond funds would you recomend? Ideally so I can invest and forget about for a few years.
The problem is you shouldn't invest & then forget about them as things change & your portfolio needs to change with it.
For example. In 2020 one of the best Bond funds was Allianz Strategic Bond. Stellar performance and miles better than anything else. In 2021 its fallen off its perch & is now one of the worst.
FWIW. Some bond funds I (and my clients) are currently investing in include:
Schroder Sterling Bond Schroder Strategic Bond Man GLG High Yield Opportunities Jupiter Strategic Absolute Return
Any thoughts on AJ Bell and socttish widows funds ?
Can't comment on AJ Bell but there aren't really any Scottish Widows funds that are worth investing in imo. Certainly not single asset funds. I have a few clients in Scottish Widows pensions and I mostly use external funds. There are a couple of SW own funds or ones they have asked other fund houses to manufacture for them that I might use......but generally wouldn't touch them with a barge pole.
What would an IFA charge generally for assessing 2 pensions (ie move, consolidate etc), coming up with report and to then implement?
Depends if they are Final Salary (DB) or Contribution based (DC). DB assessment & transfer is very costly & you now have to pay a fee just for a basic report, for which the FCA say the starting point should be to leave them where they are. The Company I work for charges a minimum £750 for an "Abridged" service, where you are getting a very basic report......or £4k for the whole kit & caboodle.
For DC schemes it's a lot cheaper & easier and the fees are usually % based - somewhere between 3% and 5% of the amount in the schemes, but again depends on the total amount. If it was in excess of £100k I'd probably charge less - say 2%. If it was in excess of £250k then probably 1%. I sometimes charge a flat fee of £750 if it's an easy case (ie, the existing plans & funds are pretty good & there isnt a lot of work involved).
I generally start with a free initial meeting where the idea is to go through what you have & see what is needed. At the end of the meeting we would then agree if it's worth proceeding at which point we would agree the fee.
No idea what others would charge though & I would say that I am cheaper than most - especially for Lifers.
Been meaning to reply to your ask about funds...I noticed you don't mention anything in the Sustainable sector. I've gone looking there in the last year or so and the funds have done well for me, notably (1y/3yr performance%), take a look:
Baillie Gifford Positive Change: 49/142 (!!) Janus Henderson Global Sustainable:28/67 Rathbone Greenbank Global Sustainability 27/62 Eden Tree Resp. &Sustain Equity: 28/37 ASI UK Ethical Equity Ret 38/20
One caveat is that if you look closely at the holdings you might cynically feel that they look a bit like re-branded tech funds, with two of them showing Microsoft as their single biggest holding; however even a mug punter can work out why this sector should see a lot more growth, in which case its all about choosing the right fund manager.
Comments
Can you have an ISA or do you have an equivalent in your country?
PS £25 for me on the PB's, £100 for Mrs R7Lee and that bl00dy father in law of mine wins again with 2x £25! Nothing for the kids.
I certainly wasn't thinking of relying on equity stocks to provide the income I need - after so many years of swerving stocks that would be bizarre at this stage of my life, but I thought that a small portfolio of solid dividend payers might be worth having as part of the overall approach.
I'll leave mine in mostly growth funds when I start to retire/drawdown. Chasing income isn't needed if you continue to, on average, grow your overall pot by at least inflation. Remember you can't take it with you so at some point spending capital is no bad thing.
I also mentioned a while ago that I was looking at moving my DB Pension out to a drawdown and was going through the process of advice to do that. Got the OK on the 23rd June and then took a week to get the funds transferred. Handed in my “resignation with benefits” on the 30th. Still have just under 2 months of work, but the SIPP has almost made back the fee for the advice already and I am really looking forward to closing the work laptop for the last time! 😁
Finally £25 for me this month from the PBs. Junior also got £25 but nothing for Mrs Chaz.
I transferred provider for my SIPP to Interactive Investor on 17th July 2020 for my non work pension from Fidelity and another transfer in January 2021 and my growth overall is now at just under 24%. Staggering really.
I've sold a few more bits in the SIPP to take/bank some profit. Although it's becoming more difficult to then reinvest but have stuck some in both HSBC Global Strategy and Vanguards similar funds (20/60/80/100 ec) funds. Japan seems undervalued but already have about 10% of the total in there.
So anyone got any great tips on funds!?!
EDIT, just looked based on current values, 80% Stocks (mainly because I just sold about 7% so that's in cash and the rest in bonds).
Weighted;
35% Europe (22% UK)
42% Americas
22% Asia
I'm thinking topping up the bonds a little.
Even with a portfolio size of £500k I usually limit the number to around 14-15 funds
4 bond
3 UK
2 or 3 US
2 European
2 Asian (usually 1 Japanese & one Asia ex Japan)
1 Property
And maybe 1 commodity fund
The Vanguard I did move some into when I sold from other funds, the lowest is up 6.5% (60 fund), the highest 32% (US one, 4th in fund list) so not bad the others range from 10-26%, not market leading but mid to upper quartile in a performance table I guess and gives a bit of spread.
Part of my issue is not wanting too much in one fund or with one fund manager, maybe over cautious.
My fund is now pretty big, I used to say no more than £35k in one fund (don't ask me why, think it goes back to 10% when my fund was £350k) and I've stuck to that to date, although BNY is about to go over and about 7 others are now over £30k. So if I stick to that I'm at 17-18 funds so could roughly half what I have. Maybe I should increase to £50k and trim down a little........
For example. In 2020 one of the best Bond funds was Allianz Strategic Bond. Stellar performance and miles better than anything else. In 2021 its fallen off its perch & is now one of the worst.
FWIW. Some bond funds I (and my clients) are currently investing in include:
Schroder Sterling Bond
Schroder Strategic Bond
Man GLG High Yield Opportunities
Jupiter Strategic Absolute Return
For DC schemes it's a lot cheaper & easier and the fees are usually % based - somewhere between 3% and 5% of the amount in the schemes, but again depends on the total amount. If it was in excess of £100k I'd probably charge less - say 2%. If it was in excess of £250k then probably 1%. I sometimes charge a flat fee of £750 if it's an easy case (ie, the existing plans & funds are pretty good & there isnt a lot of work involved).
I generally start with a free initial meeting where the idea is to go through what you have & see what is needed. At the end of the meeting we would then agree if it's worth proceeding at which point we would agree the fee.
No idea what others would charge though & I would say that I am cheaper than most - especially for Lifers.
Been meaning to reply to your ask about funds...I noticed you don't mention anything in the Sustainable sector. I've gone looking there in the last year or so and the funds have done well for me, notably (1y/3yr performance%), take a look:
Baillie Gifford Positive Change: 49/142 (!!)
Janus Henderson Global Sustainable:28/67
Rathbone Greenbank Global Sustainability 27/62
Eden Tree Resp. &Sustain Equity: 28/37
ASI UK Ethical Equity Ret 38/20
One caveat is that if you look closely at the holdings you might cynically feel that they look a bit like re-branded tech funds, with two of them showing Microsoft as their single biggest holding; however even a mug punter can work out why this sector should see a lot more growth, in which case its all about choosing the right fund manager.