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Savings and Investments thread

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  • Ignoring your own house, 1/3rd property, shares, cash. 
    Hmmmm......not sure I would go with that. Obviously all depends on your attitude to risk but even then Property shouldn't really be anymore than 10% of a portfolio.

    But then again, what do I know... 
    it’s a conservative approach and works for me in retirement. 
    What is the I/3rd property invested into ?? Physical Property like a BTL ?  Property funds ? 
  • Direct property with rental income. The shares element is in pensions/ISAs and the cash is in ISAs where possible. 
  • Direct property with rental income. The shares element is in pensions/ISAs and the cash is in ISAs where possible. 
    Whilst it may not be the recommended asset diversification, you are by no means alone, and if you are comfortable then that's all that matters even if technically it isn't the greatest investment. I'd watch what's coming down the line though, can only think BTL will remain an easy target for any incoming government. You could see rent controls and potentially an even worsening tax position.

    The friendly society where I am as a Trustee have done very very well out of property, far exceeded any other share investment by some margin due to in the main capital gain, but we aren't subject to tax (bar stamp duty if buying) which makes a big difference.

    I still have found over the past x number of years that my pension is and has been far and away the best investment, on day 1 I'm up 66% compared to any other investment simply due to the tax relief.  So every £60 in immediately becomes £100, in fact since I changed job a few years back I'm in effect getting 62% tax relief on most of my contributions so £38 in of my net money becomes £100! It's simply impossible to beat that return.
  • Direct property with rental income. The shares element is in pensions/ISAs and the cash is in ISAs where possible. 
    As I said above, not very tax efficient & very illiquid. Then you add in the factor of bad tenants and more & more government legislation around EPC's etc. But each to their own I suppose. 
  • And I suppose landlords can set their own return by increasing the rental income every few years.
  • Everyone takes a different approach. I live comfortably off the rents and not needed to touch the pension. Only issue is the residential houses have been owned for some years. They are not in a Limited Company or in a trust so CGT is an issue if I sell. 
  • edited January 30
    Rob7Lee said:
    Direct property with rental income. The shares element is in pensions/ISAs and the cash is in ISAs where possible. 
    Whilst it may not be the recommended asset diversification, you are by no means alone, and if you are comfortable then that's all that matters even if technically it isn't the greatest investment. I'd watch what's coming down the line though, can only think BTL will remain an easy target for any incoming government. You could see rent controls and potentially an even worsening tax position.

    The friendly society where I am as a Trustee have done very very well out of property, far exceeded any other share investment by some margin due to in the main capital gain, but we aren't subject to tax (bar stamp duty if buying) which makes a big difference.

    I still have found over the past x number of years that my pension is and has been far and away the best investment, on day 1 I'm up 66% compared to any other investment simply due to the tax relief.  So every £60 in immediately becomes £100, in fact since I changed job a few years back I'm in effect getting 62% tax relief on most of my contributions so £38 in of my net money becomes £100! It's simply impossible to beat that return.
    I think the thing that people forget when talking about returns, and doesn't tally with people's everyday experience, is that property is often leveraged in a way that most people can't realistically achieve in a securities portfolio.  In that situation, comparing a total return on an index to an annualised increase in house prices is comparing apples and oranges.  

    5, 10 or even 20x leverage is easily possible in property exposure whereas a securities portfolio would require either counterproductive costs (options) or a huge amount of risk (futures).  No-one marks you to market in a house, unless you can't pay the interest.  And a total loss put option is extremely cheap (buildings insurance).

    If it's a cash investment, I agree, property is lousy on a lot of dimensions: liquidity, cost of carry, yield, tax and the increasing regulatory risk.

    But it is also a verdict on the financial services industry's long and ignoble track record in conning people that a physical asset seems much more secure to a lot of people.
  • Everyone takes a different approach. I live comfortably off the rents and not needed to touch the pension. Only issue is the residential houses have been owned for some years. They are not in a Limited Company or in a trust so CGT is an issue if I sell. 
    Please tell me that you've at least taken the  Tax-free element from your pension ?  
  • Rob7Lee said:
    Direct property with rental income. The shares element is in pensions/ISAs and the cash is in ISAs where possible. 
    Whilst it may not be the recommended asset diversification, you are by no means alone, and if you are comfortable then that's all that matters even if technically it isn't the greatest investment. I'd watch what's coming down the line though, can only think BTL will remain an easy target for any incoming government. You could see rent controls and potentially an even worsening tax position.

    The friendly society where I am as a Trustee have done very very well out of property, far exceeded any other share investment by some margin due to in the main capital gain, but we aren't subject to tax (bar stamp duty if buying) which makes a big difference.

    I still have found over the past x number of years that my pension is and has been far and away the best investment, on day 1 I'm up 66% compared to any other investment simply due to the tax relief.  So every £60 in immediately becomes £100, in fact since I changed job a few years back I'm in effect getting 62% tax relief on most of my contributions so £38 in of my net money becomes £100! It's simply impossible to beat that return.

    But it is also a verdict on the financial services industry's long and ignoble track record in conning people that a physical asset seems much more secure to a lot of people.
    I dont think you can blame the financial services industry for that. Maybe blame them for various mis-selling scandals that have made the public wary of the different schemes that are available. Funny thing is,  since I first bought my first property in 1988 I've seen 3 periods of negative equity in the housing market but still the general public think that property is "as safe as houses". 

    Just look at the different tax efficient schemes out there -

    Pensions
    ISA's
    Investment Bonds 
    VCT's
    EIS
  • Everyone takes a different approach. I live comfortably off the rents and not needed to touch the pension. Only issue is the residential houses have been owned for some years. They are not in a Limited Company or in a trust so CGT is an issue if I sell. 
    Please tell me that you've at least taken the  Tax-free element from your pension ?  
    Got a drawdown pension set up. Can draw when I want.
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  • Everyone takes a different approach. I live comfortably off the rents and not needed to touch the pension. Only issue is the residential houses have been owned for some years. They are not in a Limited Company or in a trust so CGT is an issue if I sell. 
    Please tell me that you've at least taken the  Tax-free element from your pension ?  
    Got a drawdown pension set up. Can draw when I want.
    Good. But if you've not taken the 25% tax-free allowance then you are receiving rental income that is taxable compared to pension income that could be tax free (or at least 25% could be) 
  • Rob7Lee said:
    Direct property with rental income. The shares element is in pensions/ISAs and the cash is in ISAs where possible. 
    Whilst it may not be the recommended asset diversification, you are by no means alone, and if you are comfortable then that's all that matters even if technically it isn't the greatest investment. I'd watch what's coming down the line though, can only think BTL will remain an easy target for any incoming government. You could see rent controls and potentially an even worsening tax position.

    The friendly society where I am as a Trustee have done very very well out of property, far exceeded any other share investment by some margin due to in the main capital gain, but we aren't subject to tax (bar stamp duty if buying) which makes a big difference.

    I still have found over the past x number of years that my pension is and has been far and away the best investment, on day 1 I'm up 66% compared to any other investment simply due to the tax relief.  So every £60 in immediately becomes £100, in fact since I changed job a few years back I'm in effect getting 62% tax relief on most of my contributions so £38 in of my net money becomes £100! It's simply impossible to beat that return.

    But it is also a verdict on the financial services industry's long and ignoble track record in conning people that a physical asset seems much more secure to a lot of people.
    I dont think you can blame the financial services industry for that. Maybe blame them for various mis-selling scandals that have made the public wary of the different schemes that are available. Funny thing is,  since I first bought my first property in 1988 I've seen 3 periods of negative equity in the housing market but still the general public think that property is "as safe as houses". 

    Just look at the different tax efficient schemes out there -

    Pensions
    ISA's
    Investment Bonds 
    VCT's
    EIS
    I use all of those bar the investment bonds but I also work in the financial services industry, understand the risks and know how to spot the scams.  But I understand why people are wary of financial services.
  • 7830 for me Thanks. 
  • Thanks everyone, and good luck! 


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  • edited February 1
    Rob7Lee said:
    Direct property with rental income. The shares element is in pensions/ISAs and the cash is in ISAs where possible. 
    Whilst it may not be the recommended asset diversification, you are by no means alone, and if you are comfortable then that's all that matters even if technically it isn't the greatest investment. I'd watch what's coming down the line though, can only think BTL will remain an easy target for any incoming government. You could see rent controls and potentially an even worsening tax position.

    The friendly society where I am as a Trustee have done very very well out of property, far exceeded any other share investment by some margin due to in the main capital gain, but we aren't subject to tax (bar stamp duty if buying) which makes a big difference.

    I still have found over the past x number of years that my pension is and has been far and away the best investment, on day 1 I'm up 66% compared to any other investment simply due to the tax relief.  So every £60 in immediately becomes £100, in fact since I changed job a few years back I'm in effect getting 62% tax relief on most of my contributions so £38 in of my net money becomes £100! It's simply impossible to beat that return.

    But it is also a verdict on the financial services industry's long and ignoble track record in conning people that a physical asset seems much more secure to a lot of people.
    I dont think you can blame the financial services industry for that. Maybe blame them for various mis-selling scandals that have made the public wary of the different schemes that are available. Funny thing is,  since I first bought my first property in 1988 I've seen 3 periods of negative equity in the housing market but still the general public think that property is "as safe as houses". 

    Just look at the different tax efficient schemes out there -

    Pensions
    ISA's
    Investment Bonds 
    VCT's
    EIS
    I use all of those bar the investment bonds but I also work in the financial services industry, understand the risks and know how to spot the scams.  But I understand why people are wary of financial services.
    I'm looking at getting a bit more involved in EIS, what sort of things have you invested in (and how?) if you don't mind me asking? 
  • edited February 1
    Be nice if Fed Chief Powell kept his gob shut now and again. 
    (I know he's doing his job but it seems every word he says costs a trillion dollars. I know also that's the market, not him. But still)
  • £50 for me, £200 for the missus, £25 for my Mum.
  • A big fat zero for me.
  • £200 for me and £250 for Margaret
  • edited February 2
    £75 for me £275 for Mrs R7L and £50 for daughter, Father in law to follow!

    edit, £100 for father in law
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  • Bugger all for me, the wife or son  :/
  • £250 each for me and my squeeze
  • Nothing for me  :(
  • Two max holdings and the square root of f*ck all!
  • bobmunro said:
    Two max holdings and the square root of f*ck all!
    Have a word with CAFCTOM 😂 think he stole yours.
  • edited February 2
    £50 again here. £150 for partner
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