If, like me, your Disgruntlement with Premium Bonds barometer is running at a high level today, it's more than worth reading Martin Lewis' typically clear-sighted analysis of Premium Bonds and how they work. That said, his calculator on that page currently isn't working (I tried in two browsers); and I slightly take issue with one of his points against, when he rightly addresses the emotional attraction of PBs. He says:
"Many people often think: "I'm likely to get the prize rate (or thereabouts) – and there's a small chance of winning a million", but this isn't correct. You're actually likely to get quite a lot less than the prize rate of 4.15% or 4%, and there's a negligible chance of winning a million."
So he does a good job explaining why we should expect less than the declared interest rate. However while there's obviously a negligible chance of winning a million, the chances of winning £5,000 are a fair bit better, although I have no idea how to calculate the chance. The thing about winning 5k is that on a £50k holding you've got an effective interest rate of at least 10% for that year. If I recall, at least one Lifer has told us they've bagged £5k. I've been subconsciously telling myself this for a while when justifying my continued holding; that and the monthly shared disappointment and occasional joy on this thread.
In February there were 1,626 winners of £5k which is 19,512 a year. There were 426,485,250 bonds in issue, therefore a .0046% chance of winning £5k. So I would say that is a pretty small chance of winning £5k and a negligible chance of winning £1m. When I look at PB's I tend to knock about .5% of the prizefund to assess the likely interest rate. So I expect 4% to return me 3.5%. Probably good if being taxed on interest elsewhere. Not if you aren't eg ISA;s or below the limit!. In effect I someone with max £50k is gambling £250 (.5%) a year to get a bigger prize. That's the way I look at it anyway
Hi. I'm looking for some advise. I will be 65 in March and have two final salery pensions that I will be able to take. I have a third one that I took when the pandemic started.
One of the pensions that I will be able to access gives me the opportunity to take a 25% tax free lump sum c£100,000. I'm not sure if I should sacrifice the reduction in the pension c£6k p/a that I will lose or not. I don't really need the cash as I will have the other two pensions, my state pension in 12 months and also rent out two houses and have a fair amount of savings / investments.
Should I take the cash and spend / Invest some of it or max the pension income?. Any advise gladly welcomed. Cheers.
Realistically if you take it and invest it you’ll need to live past 85/90 to be worse off, even if you have a spouse.
id take it, fairly low risk doing so but many upsides!
We all hope we live to a ripe old age, a director at Legal and General many years ago retired on his 65th birthday, guy was a workaholic (not married, no children). I suspect his DB pension was north of £200k a year even back then, he died within 3 weeks so never saw a penny!!
Thanks for the response. That is my plan. Any suggestions for maximising the investment given that there will be a drop of c £6k by taking the money rather than the pension?.
Partly depends what else you have and your tax situation, but in general always start with the most tax efficient, ISA's and Premium bonds are probably first port of call. That said, you mention 2 houses, other pensions and investments, so dare I say spend some or all of it! The holiday/s you've always wanted, the car, watch, the golf club membership - now is the time to live like you stole it
Hi. I'm looking for some advise. I will be 65 in March and have two final salery pensions that I will be able to take. I have a third one that I took when the pandemic started.
One of the pensions that I will be able to access gives me the opportunity to take a 25% tax free lump sum c£100,000. I'm not sure if I should sacrifice the reduction in the pension c£6k p/a that I will lose or not. I don't really need the cash as I will have the other two pensions, my state pension in 12 months and also rent out two houses and have a fair amount of savings / investments.
Should I take the cash and spend / Invest some of it or max the pension income?. Any advise gladly welcomed. Cheers.
Realistically if you take it and invest it you’ll need to live past 85/90 to be worse off, even if you have a spouse.
id take it, fairly low risk doing so but many upsides!
We all hope we live to a ripe old age, a director at Legal and General many years ago retired on his 65th birthday, guy was a workaholic (not married, no children). I suspect his DB pension was north of £200k a year even back then, he died within 3 weeks so never saw a penny!!
Thanks for the response. That is my plan. Any suggestions for maximising the investment given that there will be a drop of c £6k by taking the money rather than the pension?.
Partly depends what else you have and your tax situation, but in general always start with the most tax efficient, ISA's and Premium bonds are probably first port of call. That said, you mention 2 houses, other pensions and investments, so dare I say spend some or all of it! The holiday/s you've always wanted, the car, watch, the golf club membership - now is the time to live like you stole it
Hi mate. Thanks for the advice it is appreciated. Was thinking of making a donation to the club to put towards a winger but might now just spend it instead 😉😅
Hi. I'm looking for some advise. I will be 65 in March and have two final salery pensions that I will be able to take. I have a third one that I took when the pandemic started.
One of the pensions that I will be able to access gives me the opportunity to take a 25% tax free lump sum c£100,000. I'm not sure if I should sacrifice the reduction in the pension c£6k p/a that I will lose or not. I don't really need the cash as I will have the other two pensions, my state pension in 12 months and also rent out two houses and have a fair amount of savings / investments.
Should I take the cash and spend / Invest some of it or max the pension income?. Any advise gladly welcomed. Cheers.
Realistically if you take it and invest it you’ll need to live past 85/90 to be worse off, even if you have a spouse.
id take it, fairly low risk doing so but many upsides!
We all hope we live to a ripe old age, a director at Legal and General many years ago retired on his 65th birthday, guy was a workaholic (not married, no children). I suspect his DB pension was north of £200k a year even back then, he died within 3 weeks so never saw a penny!!
Thanks for the response. That is my plan. Any suggestions for maximising the investment given that there will be a drop of c £6k by taking the money rather than the pension?.
With sums like that I recommend you speak to a financial adviser. Lesser amounts then it's best to use up your ISA allowances but you indicate that you have other investments so I assume you've already done that. Therefore you might have to look at other investments that could give you an income.
One thing to consider - just make sure that by taking the £100k you will not be approaching the max TFC allowance of £268275. The issue is that if you still have 2 DB schemes to take do these give you TFC as well ? Bearing in mind you've already taken 1 DB scheme already.
Hi. I'm looking for some advise. I will be 65 in March and have two final salery pensions that I will be able to take. I have a third one that I took when the pandemic started.
One of the pensions that I will be able to access gives me the opportunity to take a 25% tax free lump sum c£100,000. I'm not sure if I should sacrifice the reduction in the pension c£6k p/a that I will lose or not. I don't really need the cash as I will have the other two pensions, my state pension in 12 months and also rent out two houses and have a fair amount of savings / investments.
Should I take the cash and spend / Invest some of it or max the pension income?. Any advise gladly welcomed. Cheers.
Realistically if you take it and invest it you’ll need to live past 85/90 to be worse off, even if you have a spouse.
id take it, fairly low risk doing so but many upsides!
We all hope we live to a ripe old age, a director at Legal and General many years ago retired on his 65th birthday, guy was a workaholic (not married, no children). I suspect his DB pension was north of £200k a year even back then, he died within 3 weeks so never saw a penny!!
Thanks for the response. That is my plan. Any suggestions for maximising the investment given that there will be a drop of c £6k by taking the money rather than the pension?.
With sums like that I recommend you speak to a financial adviser. Lesser amounts then it's best to use up your ISA allowances but you indicate that you have other investments so I assume you've already done that. Therefore you might have to look at other investments that could give you an income.
One thing to consider - just make sure that by taking the £100k you will not be approaching the max TFC allowance of £268275. The issue is that if you still have 2 DB schemes to take do these give you TFC as well ? Bearing in mind you've already taken 1 DB scheme already.
I read that the 2 BOE policy members that voted against the 0.25% cut were actually in favour of a 0.5% cut. Good on them. Need to get interst rates down asap.
If, like me, your Disgruntlement with Premium Bonds barometer is running at a high level today, it's more than worth reading Martin Lewis' typically clear-sighted analysis of Premium Bonds and how they work. That said, his calculator on that page currently isn't working (I tried in two browsers); and I slightly take issue with one of his points against, when he rightly addresses the emotional attraction of PBs. He says:
"Many people often think: "I'm likely to get the prize rate (or thereabouts) – and there's a small chance of winning a million", but this isn't correct. You're actually likely to get quite a lot less than the prize rate of 4.15% or 4%, and there's a negligible chance of winning a million."
So he does a good job explaining why we should expect less than the declared interest rate. However while there's obviously a negligible chance of winning a million, the chances of winning £5,000 are a fair bit better, although I have no idea how to calculate the chance. The thing about winning 5k is that on a £50k holding you've got an effective interest rate of at least 10% for that year. If I recall, at least one Lifer has told us they've bagged £5k. I've been subconsciously telling myself this for a while when justifying my continued holding; that and the monthly shared disappointment and occasional joy on this thread.
In February there were 1,626 winners of £5k which is 19,512 a year. There were 426,485,250 bonds in issue, therefore a .0046% chance of winning £5k. So I would say that is a pretty small chance of winning £5k and a negligible chance of winning £1m. When I look at PB's I tend to knock about .5% of the prizefund to assess the likely interest rate. So I expect 4% to return me 3.5%. Probably good if being taxed on interest elsewhere. Not if you aren't eg ISA;s or below the limit!. In effect I someone with max £50k is gambling £250 (.5%) a year to get a bigger prize. That's the way I look at it anyway
That’s well argued (even if, to quibble, i would be adding in the chances of winning above £5k too to get the final %chance.)
Rationally I already accept your case. But there’s emotion at work, and also the issue of where else to put the money. In the case of fixed interest bonds I have the added problem of some of the best solid ones demanding UK tax residenčy. Investec and DS Capital are two I currently have bonds with. Secure Trust, not stated. Charter Savings are perfectly OK with it but I am already near the protection limit with them. NS&I also ok with it but their rates are now less competitive. 6.2% a distant memory. Tedious.
I read that the 2 BOE policy members that voted against the 0.25% cut were actually in favour of a 0.5% cut. Good on them. Need to get interst rates down asap.
It’s a balance.
i don’t think it’ll drop much below 4% this year, if at all, house prices and appreciating assets in general will continue to rise.
same old problem of only so much money in the system that continues to flow in one direction.
I read that the 2 BOE policy members that voted against the 0.25% cut were actually in favour of a 0.5% cut. Good on them. Need to get interst rates down asap.
It’s a balance.
i don’t think it’ll drop much below 4% this year, if at all, house prices and appreciating assets in general will continue to rise.
same old problem of only so much money in the system that continues to flow in one direction.
Forecasters are saying just one more 0.25% cut this year. I think there will be 2 more - one in June & one towards the end of the year.
At the start of 2024 it was forecasted that there would be 5 or 6 between then & the end of this year with the Base Rate closing 2025 at 3.5%.
I read that the 2 BOE policy members that voted against the 0.25% cut were actually in favour of a 0.5% cut. Good on them. Need to get interst rates down asap.
It’s a balance.
i don’t think it’ll drop much below 4% this year, if at all, house prices and appreciating assets in general will continue to rise.
same old problem of only so much money in the system that continues to flow in one direction.
Forecasters are saying just one more 0.25% cut this year. I think there will be 2 more - one in June & one towards the end of the year.
At the start of 2024 it was forecasted that there would be 5 or 6 between then & the end of this year with the Base Rate closing 2025 at 3.5%.
There’s an outside chance it’ll drop to 4% or even 3.75%.
In the meantime property will continue to rise, gold has gone crazy and markets are all but at all time highs…… crazy times.
I read that the 2 BOE policy members that voted against the 0.25% cut were actually in favour of a 0.5% cut. Good on them. Need to get interst rates down asap.
It’s a balance.
i don’t think it’ll drop much below 4% this year, if at all, house prices and appreciating assets in general will continue to rise.
same old problem of only so much money in the system that continues to flow in one direction.
Forecasters are saying just one more 0.25% cut this year. I think there will be 2 more - one in June & one towards the end of the year.
At the start of 2024 it was forecasted that there would be 5 or 6 between then & the end of this year with the Base Rate closing 2025 at 3.5%.
I think we're already in recession. Hearing it a lot from people I know in business and it's starting to show up in the job openings and business confidence stats. That would change the picture for the BoE. Of course, first the governor would have to take his head out of his arse to notice.
If, like me, your Disgruntlement with Premium Bonds barometer is running at a high level today, it's more than worth reading Martin Lewis' typically clear-sighted analysis of Premium Bonds and how they work. That said, his calculator on that page currently isn't working (I tried in two browsers); and I slightly take issue with one of his points against, when he rightly addresses the emotional attraction of PBs. He says:
"Many people often think: "I'm likely to get the prize rate (or thereabouts) – and there's a small chance of winning a million", but this isn't correct. You're actually likely to get quite a lot less than the prize rate of 4.15% or 4%, and there's a negligible chance of winning a million."
So he does a good job explaining why we should expect less than the declared interest rate. However while there's obviously a negligible chance of winning a million, the chances of winning £5,000 are a fair bit better, although I have no idea how to calculate the chance. The thing about winning 5k is that on a £50k holding you've got an effective interest rate of at least 10% for that year. If I recall, at least one Lifer has told us they've bagged £5k. I've been subconsciously telling myself this for a while when justifying my continued holding; that and the monthly shared disappointment and occasional joy on this thread.
In February there were 1,626 winners of £5k which is 19,512 a year. There were 426,485,250 bonds in issue, therefore a .0046% chance of winning £5k. So I would say that is a pretty small chance of winning £5k and a negligible chance of winning £1m. When I look at PB's I tend to knock about .5% of the prizefund to assess the likely interest rate. So I expect 4% to return me 3.5%. Probably good if being taxed on interest elsewhere. Not if you aren't eg ISA;s or below the limit!. In effect I someone with max £50k is gambling £250 (.5%) a year to get a bigger prize. That's the way I look at it anyway
That’s well argued (even if, to quibble, i would be adding in the chances of winning above £5k too to get the final %chance.)
Rationally I already accept your case. But there’s emotion at work, and also the issue of where else to put the money. In the case of fixed interest bonds I have the added problem of some of the best solid ones demanding UK tax residenčy. Investec and DS Capital are two I currently have bonds with. Secure Trust, not stated. Charter Savings are perfectly OK with it but I am already near the protection limit with them. NS&I also ok with it but their rates are now less competitive. 6.2% a distant memory. Tedious.
I've felt a bit left out on the premium bonds discussions as I haven't held any for about 25 years. (Not counting the ones that my mum holds on my behalf that (a) were priced in shillings, (b) add up to about 6 quid and (c) have never won a bean.)
Then in the last draw a friend of mine won 25 grand. He'd sold some bonds to pay his tax bill last January and then bought them back in April with his bonus. That winning ticket was in that 11k batch.
Curious if anyone here has experience in gold. Personally I feel a tad nervous about everything going on at the moment and my exposure. To put it frankly, the returns can't keep being at this level and I'm a tad nervous we are in a bubble, in US markets in particular (please feel free to persuade me otherwise!)
I'm looking at potentially diversifying a bit into gold, which has actually outperformed the S&P 500 over the past year and I'm considering how best to do it.
Chards (associated with the royal mint) sell gold britannias etc at very close to spot price. These are exempt from CGT. (Are britannias the best vehicle, or are bars etc better? Britannias seem to have the tightest spread on buy/sell on Chards)
I am a bit concerned about potential CGT exposure which leads to me considering buying some physical gold. I'm not really inclined to go down the storage route, as there would be something cool about physically holding them...
If this were not the case, I would be tempted to buy gold through an ETF.
Just looking for people's experiences to stop me making any foolish errors!
Curious if anyone here has experience in gold. Personally I feel a tad nervous about everything going on at the moment and my exposure. To put it frankly, the returns can't keep being at this level and I'm a tad nervous we are in a bubble, in US markets in particular (please feel free to persuade me otherwise!)
I'm looking at potentially diversifying a bit into gold, which has actually outperformed the S&P 500 over the past year and I'm considering how best to do it.
Chards (associated with the royal mint) sell gold britannias etc at very close to spot price. These are exempt from CGT. (Are britannias the best vehicle, or are bars etc better? Britannias seem to have the tightest spread on buy/sell on Chards)
I am a bit concerned about potential CGT exposure which leads to me considering buying some physical gold. I'm not really inclined to go down the storage route, as there would be something cool about physically holding them...
If this were not the case, I would be tempted to buy gold through an ETF.
Just looking for people's experiences to stop me making any foolish errors!
I'm relatively heavy in gold but bought over the last 8-10 years and some inherited. 80% is in gold Sovereigns, legal tender so no CGT. Can't believe they are nearly £580 now, when I first stared they were a little bit under £200. I keep mine in the bank (I have a fair amount).
Curious if anyone here has experience in gold. Personally I feel a tad nervous about everything going on at the moment and my exposure. To put it frankly, the returns can't keep being at this level and I'm a tad nervous we are in a bubble, in US markets in particular (please feel free to persuade me otherwise!)
I'm looking at potentially diversifying a bit into gold, which has actually outperformed the S&P 500 over the past year and I'm considering how best to do it.
Chards (associated with the royal mint) sell gold britannias etc at very close to spot price. These are exempt from CGT. (Are britannias the best vehicle, or are bars etc better? Britannias seem to have the tightest spread on buy/sell on Chards)
I am a bit concerned about potential CGT exposure which leads to me considering buying some physical gold. I'm not really inclined to go down the storage route, as there would be something cool about physically holding them...
If this were not the case, I would be tempted to buy gold through an ETF.
Just looking for people's experiences to stop me making any foolish errors!
I'm relatively heavy in gold but bought over the last 8-10 years and some inherited. 80% is in gold Sovereigns, legal tender so no CGT. Can't believe they are nearly £580 now, when I first stared they were a little bit under £200. I keep mine in the bank (I have a fair amount).
Thanks for that.
And just to ask, what is your reason to buy gold? Is it basically as a store of wealth that avoids CGT?
Where I am at the moment is that it feels a) like a tax efficient store for wealth and b) a product that is counter volatility. The whole "flight to quality" etc during very "interesting times"
Another question about buying gold: I’m thinking of putting £100k into gold from my forthcoming retirement cash with the aim of seeing annual growth/profit and relative ease of ‘cashing out’ when I want to. Do those ITK have a view on whether the best option for me would be (a) UK gold sovereigns (CGT free), (b) pure gold bars (I’ve got a Dubai trip looming so maybe could buy more cheaply there plus it’s said they sell the best quality too) or invest in gold via an ETF. Thoughts appreciated especially as this bloody government seems bent on taxing those who have worked their socks off to grow any wealth. Thanks.
Another question about buying gold: I’m thinking of putting £100k into gold from my forthcoming retirement cash with the aim of seeing annual growth/profit and relative ease of ‘cashing out’ when I want to. Do those ITK have a view on whether the best option for me would be (a) UK gold sovereigns (CGT free), (b) pure gold bars (I’ve got a Dubai trip looming so maybe could buy more cheaply there plus it’s said they sell the best quality too) or invest in gold via an ETF. Thoughts appreciated especially as this bloody government seems bent on taxing those who have worked their socks off to grow any wealth. Thanks.
If I was doing £100k and this is with the knowledge from research rather than lived experience, I would focus on physical britannias in order to avoid CGT vs an ETF. Price of gold is £2,333.84/oz now, Chards have britannias for £2,380.98, so a pretty tight spread.
Id obviously then be looking at storing them.
Gold bars for example will not be CGT free, so the amount that you might save out in Dubai, you will lose many times over on selling them.
Personally, if I buy gold I will use them to store wealth in a tax efficient manner, and then sell them down in order to fill an ISA each year.
For me, 34, wanting to buy a bigger house in the next 10 years, I invest in this order:
1) Stocks and Shares ISA - £40k annually across a couple. 2) General investment account (to where my wife and I probably won't make more than CGT allowance of £6k a year combined) - £50k total across a couple approx assuming 10-12% growth 3) Gold, enough to ensure I can fill next couple year's ISA allowance, so about £80k 4) Pension
If I was in my "forever house" pension would switch to #1 once I had enough cash to cover any issues.
Another question about buying gold: I’m thinking of putting £100k into gold from my forthcoming retirement cash with the aim of seeing annual growth/profit and relative ease of ‘cashing out’ when I want to. Do those ITK have a view on whether the best option for me would be (a) UK gold sovereigns (CGT free), (b) pure gold bars (I’ve got a Dubai trip looming so maybe could buy more cheaply there plus it’s said they sell the best quality too) or invest in gold via an ETF. Thoughts appreciated especially as this bloody government seems bent on taxing those who have worked their socks off to grow any wealth. Thanks.
I’d personally not buy in Dubai (or anywhere overseas ).
I am risk averse and wouldn’t know if I was buying genuine quality or not and fear I had been duped upon trying to realise the cash further down the line!
My simple logic says if the price differential is so favourable everyone would do it and then it wouldn’t be such a deal after all.
Curious if anyone here has experience in gold. Personally I feel a tad nervous about everything going on at the moment and my exposure. To put it frankly, the returns can't keep being at this level and I'm a tad nervous we are in a bubble, in US markets in particular (please feel free to persuade me otherwise!)
I'm looking at potentially diversifying a bit into gold, which has actually outperformed the S&P 500 over the past year and I'm considering how best to do it.
Chards (associated with the royal mint) sell gold britannias etc at very close to spot price. These are exempt from CGT. (Are britannias the best vehicle, or are bars etc better? Britannias seem to have the tightest spread on buy/sell on Chards)
I am a bit concerned about potential CGT exposure which leads to me considering buying some physical gold. I'm not really inclined to go down the storage route, as there would be something cool about physically holding them...
If this were not the case, I would be tempted to buy gold through an ETF.
Just looking for people's experiences to stop me making any foolish errors!
I'm relatively heavy in gold but bought over the last 8-10 years and some inherited. 80% is in gold Sovereigns, legal tender so no CGT. Can't believe they are nearly £580 now, when I first stared they were a little bit under £200. I keep mine in the bank (I have a fair amount).
Thanks for that.
And just to ask, what is your reason to buy gold? Is it basically as a store of wealth that avoids CGT?
Where I am at the moment is that it feels a) like a tax efficient store for wealth and b) a product that is counter volatility. The whole "flight to quality" etc during very "interesting times"
10-15 years ago, much like now, I was quite heavy in the stock market, didn’t like the non liquid property investment, so gold seemed a good idea as a bit of diversification (add to that a few watches and cars along the way).
dare I also say the tax efficiency and the fact I can cash in literally in minutes.
all of that said, not sure I’ll be buying anymore right now, price is high, if anything I may sell some. I have quite a bit of gold by way of chains and the like and may just scrap that in.
Curious if anyone here has experience in gold. Personally I feel a tad nervous about everything going on at the moment and my exposure. To put it frankly, the returns can't keep being at this level and I'm a tad nervous we are in a bubble, in US markets in particular (please feel free to persuade me otherwise!)
I'm looking at potentially diversifying a bit into gold, which has actually outperformed the S&P 500 over the past year and I'm considering how best to do it.
Chards (associated with the royal mint) sell gold britannias etc at very close to spot price. These are exempt from CGT. (Are britannias the best vehicle, or are bars etc better? Britannias seem to have the tightest spread on buy/sell on Chards)
I am a bit concerned about potential CGT exposure which leads to me considering buying some physical gold. I'm not really inclined to go down the storage route, as there would be something cool about physically holding them...
If this were not the case, I would be tempted to buy gold through an ETF.
Just looking for people's experiences to stop me making any foolish errors!
I'm relatively heavy in gold but bought over the last 8-10 years and some inherited. 80% is in gold Sovereigns, legal tender so no CGT. Can't believe they are nearly £580 now, when I first stared they were a little bit under £200. I keep mine in the bank (I have a fair amount).
Thanks for that.
And just to ask, what is your reason to buy gold? Is it basically as a store of wealth that avoids CGT?
Where I am at the moment is that it feels a) like a tax efficient store for wealth and b) a product that is counter volatility. The whole "flight to quality" etc during very "interesting times"
10-15 years ago, much like now, I was quite heavy in the stock market, didn’t like the non liquid property investment, so gold seemed a good idea as a bit of diversification (add to that a few watches and cars along the way).
dare I also say the tax efficiency and the fact I can cash in literally in minutes.
all of that said, not sure I’ll be buying anymore right now, price is high, if anything I may sell some. I have quite a bit of gold by way of chains and the like and may just scrap that in.
....point taken about the price being at an all time high but I just wish I'd bought $30,000 worth @ $230 per oz 25 years ago; would be worth $380,000 today!
Curious if anyone here has experience in gold. Personally I feel a tad nervous about everything going on at the moment and my exposure. To put it frankly, the returns can't keep being at this level and I'm a tad nervous we are in a bubble, in US markets in particular (please feel free to persuade me otherwise!)
I'm looking at potentially diversifying a bit into gold, which has actually outperformed the S&P 500 over the past year and I'm considering how best to do it.
Chards (associated with the royal mint) sell gold britannias etc at very close to spot price. These are exempt from CGT. (Are britannias the best vehicle, or are bars etc better? Britannias seem to have the tightest spread on buy/sell on Chards)
I am a bit concerned about potential CGT exposure which leads to me considering buying some physical gold. I'm not really inclined to go down the storage route, as there would be something cool about physically holding them...
If this were not the case, I would be tempted to buy gold through an ETF.
Just looking for people's experiences to stop me making any foolish errors!
I'm relatively heavy in gold but bought over the last 8-10 years and some inherited. 80% is in gold Sovereigns, legal tender so no CGT. Can't believe they are nearly £580 now, when I first stared they were a little bit under £200. I keep mine in the bank (I have a fair amount).
Thanks for that.
And just to ask, what is your reason to buy gold? Is it basically as a store of wealth that avoids CGT?
Where I am at the moment is that it feels a) like a tax efficient store for wealth and b) a product that is counter volatility. The whole "flight to quality" etc during very "interesting times"
10-15 years ago, much like now, I was quite heavy in the stock market, didn’t like the non liquid property investment, so gold seemed a good idea as a bit of diversification (add to that a few watches and cars along the way).
dare I also say the tax efficiency and the fact I can cash in literally in minutes.
all of that said, not sure I’ll be buying anymore right now, price is high, if anything I may sell some. I have quite a bit of gold by way of chains and the like and may just scrap that in.
....point taken about the price being at an all time high but I just wish I'd bought $30,000 worth @ $230 per oz 25 years ago; would be worth $380,000 today!
But you would have had a similar return on any decent property you’d bought in the London area over the same time period.
Curious if anyone here has experience in gold. Personally I feel a tad nervous about everything going on at the moment and my exposure. To put it frankly, the returns can't keep being at this level and I'm a tad nervous we are in a bubble, in US markets in particular (please feel free to persuade me otherwise!)
I'm looking at potentially diversifying a bit into gold, which has actually outperformed the S&P 500 over the past year and I'm considering how best to do it.
Chards (associated with the royal mint) sell gold britannias etc at very close to spot price. These are exempt from CGT. (Are britannias the best vehicle, or are bars etc better? Britannias seem to have the tightest spread on buy/sell on Chards)
I am a bit concerned about potential CGT exposure which leads to me considering buying some physical gold. I'm not really inclined to go down the storage route, as there would be something cool about physically holding them...
If this were not the case, I would be tempted to buy gold through an ETF.
Just looking for people's experiences to stop me making any foolish errors!
I'm relatively heavy in gold but bought over the last 8-10 years and some inherited. 80% is in gold Sovereigns, legal tender so no CGT. Can't believe they are nearly £580 now, when I first stared they were a little bit under £200. I keep mine in the bank (I have a fair amount).
Thanks for that.
And just to ask, what is your reason to buy gold? Is it basically as a store of wealth that avoids CGT?
Where I am at the moment is that it feels a) like a tax efficient store for wealth and b) a product that is counter volatility. The whole "flight to quality" etc during very "interesting times"
10-15 years ago, much like now, I was quite heavy in the stock market, didn’t like the non liquid property investment, so gold seemed a good idea as a bit of diversification (add to that a few watches and cars along the way).
dare I also say the tax efficiency and the fact I can cash in literally in minutes.
all of that said, not sure I’ll be buying anymore right now, price is high, if anything I may sell some. I have quite a bit of gold by way of chains and the like and may just scrap that in.
....point taken about the price being at an all time high but I just wish I'd bought $30,000 worth @ $230 per oz 25 years ago; would be worth $380,000 today!
Hindsight is a wonderful thing!!
by all means buy some, but maybe start a bit smaller than a £100k!
Curious if anyone here has experience in gold. Personally I feel a tad nervous about everything going on at the moment and my exposure. To put it frankly, the returns can't keep being at this level and I'm a tad nervous we are in a bubble, in US markets in particular (please feel free to persuade me otherwise!)
I'm looking at potentially diversifying a bit into gold, which has actually outperformed the S&P 500 over the past year and I'm considering how best to do it.
Chards (associated with the royal mint) sell gold britannias etc at very close to spot price. These are exempt from CGT. (Are britannias the best vehicle, or are bars etc better? Britannias seem to have the tightest spread on buy/sell on Chards)
I am a bit concerned about potential CGT exposure which leads to me considering buying some physical gold. I'm not really inclined to go down the storage route, as there would be something cool about physically holding them...
If this were not the case, I would be tempted to buy gold through an ETF.
Just looking for people's experiences to stop me making any foolish errors!
I'm relatively heavy in gold but bought over the last 8-10 years and some inherited. 80% is in gold Sovereigns, legal tender so no CGT. Can't believe they are nearly £580 now, when I first stared they were a little bit under £200. I keep mine in the bank (I have a fair amount).
Thanks for that.
And just to ask, what is your reason to buy gold? Is it basically as a store of wealth that avoids CGT?
Where I am at the moment is that it feels a) like a tax efficient store for wealth and b) a product that is counter volatility. The whole "flight to quality" etc during very "interesting times"
10-15 years ago, much like now, I was quite heavy in the stock market, didn’t like the non liquid property investment, so gold seemed a good idea as a bit of diversification (add to that a few watches and cars along the way).
dare I also say the tax efficiency and the fact I can cash in literally in minutes.
all of that said, not sure I’ll be buying anymore right now, price is high, if anything I may sell some. I have quite a bit of gold by way of chains and the like and may just scrap that in.
....point taken about the price being at an all time high but I just wish I'd bought $30,000 worth @ $230 per oz 25 years ago; would be worth $380,000 today!
But you would have had a similar return on any decent property you’d bought in the London area over the same time period.
I get your point but relatively small sums like $30k were in bank accounts back then and clearly not enough to buy a property with so going for gold would have been the best investment at that lower level is my point.
Curious if anyone here has experience in gold. Personally I feel a tad nervous about everything going on at the moment and my exposure. To put it frankly, the returns can't keep being at this level and I'm a tad nervous we are in a bubble, in US markets in particular (please feel free to persuade me otherwise!)
I'm looking at potentially diversifying a bit into gold, which has actually outperformed the S&P 500 over the past year and I'm considering how best to do it.
Chards (associated with the royal mint) sell gold britannias etc at very close to spot price. These are exempt from CGT. (Are britannias the best vehicle, or are bars etc better? Britannias seem to have the tightest spread on buy/sell on Chards)
I am a bit concerned about potential CGT exposure which leads to me considering buying some physical gold. I'm not really inclined to go down the storage route, as there would be something cool about physically holding them...
If this were not the case, I would be tempted to buy gold through an ETF.
Just looking for people's experiences to stop me making any foolish errors!
I'm relatively heavy in gold but bought over the last 8-10 years and some inherited. 80% is in gold Sovereigns, legal tender so no CGT. Can't believe they are nearly £580 now, when I first stared they were a little bit under £200. I keep mine in the bank (I have a fair amount).
Thanks for that.
And just to ask, what is your reason to buy gold? Is it basically as a store of wealth that avoids CGT?
Where I am at the moment is that it feels a) like a tax efficient store for wealth and b) a product that is counter volatility. The whole "flight to quality" etc during very "interesting times"
10-15 years ago, much like now, I was quite heavy in the stock market, didn’t like the non liquid property investment, so gold seemed a good idea as a bit of diversification (add to that a few watches and cars along the way).
dare I also say the tax efficiency and the fact I can cash in literally in minutes.
all of that said, not sure I’ll be buying anymore right now, price is high, if anything I may sell some. I have quite a bit of gold by way of chains and the like and may just scrap that in.
....point taken about the price being at an all time high but I just wish I'd bought $30,000 worth @ $230 per oz 25 years ago; would be worth $380,000 today!
But you would have had a similar return on any decent property you’d bought in the London area over the same time period.
You wouldn’t once you take off costs of maintaining and CGT……… none of those for gold (unless you pay to keep it somewhere)
Curious if anyone here has experience in gold. Personally I feel a tad nervous about everything going on at the moment and my exposure. To put it frankly, the returns can't keep being at this level and I'm a tad nervous we are in a bubble, in US markets in particular (please feel free to persuade me otherwise!)
I'm looking at potentially diversifying a bit into gold, which has actually outperformed the S&P 500 over the past year and I'm considering how best to do it.
Chards (associated with the royal mint) sell gold britannias etc at very close to spot price. These are exempt from CGT. (Are britannias the best vehicle, or are bars etc better? Britannias seem to have the tightest spread on buy/sell on Chards)
I am a bit concerned about potential CGT exposure which leads to me considering buying some physical gold. I'm not really inclined to go down the storage route, as there would be something cool about physically holding them...
If this were not the case, I would be tempted to buy gold through an ETF.
Just looking for people's experiences to stop me making any foolish errors!
I'm relatively heavy in gold but bought over the last 8-10 years and some inherited. 80% is in gold Sovereigns, legal tender so no CGT. Can't believe they are nearly £580 now, when I first stared they were a little bit under £200. I keep mine in the bank (I have a fair amount).
Thanks for that.
And just to ask, what is your reason to buy gold? Is it basically as a store of wealth that avoids CGT?
Where I am at the moment is that it feels a) like a tax efficient store for wealth and b) a product that is counter volatility. The whole "flight to quality" etc during very "interesting times"
10-15 years ago, much like now, I was quite heavy in the stock market, didn’t like the non liquid property investment, so gold seemed a good idea as a bit of diversification (add to that a few watches and cars along the way).
dare I also say the tax efficiency and the fact I can cash in literally in minutes.
all of that said, not sure I’ll be buying anymore right now, price is high, if anything I may sell some. I have quite a bit of gold by way of chains and the like and may just scrap that in.
....point taken about the price being at an all time high but I just wish I'd bought $30,000 worth @ $230 per oz 25 years ago; would be worth $380,000 today!
Curious if anyone here has experience in gold. Personally I feel a tad nervous about everything going on at the moment and my exposure. To put it frankly, the returns can't keep being at this level and I'm a tad nervous we are in a bubble, in US markets in particular (please feel free to persuade me otherwise!)
I'm looking at potentially diversifying a bit into gold, which has actually outperformed the S&P 500 over the past year and I'm considering how best to do it.
Chards (associated with the royal mint) sell gold britannias etc at very close to spot price. These are exempt from CGT. (Are britannias the best vehicle, or are bars etc better? Britannias seem to have the tightest spread on buy/sell on Chards)
I am a bit concerned about potential CGT exposure which leads to me considering buying some physical gold. I'm not really inclined to go down the storage route, as there would be something cool about physically holding them...
If this were not the case, I would be tempted to buy gold through an ETF.
Just looking for people's experiences to stop me making any foolish errors!
I'm relatively heavy in gold but bought over the last 8-10 years and some inherited. 80% is in gold Sovereigns, legal tender so no CGT. Can't believe they are nearly £580 now, when I first stared they were a little bit under £200. I keep mine in the bank (I have a fair amount).
Thanks for that.
And just to ask, what is your reason to buy gold? Is it basically as a store of wealth that avoids CGT?
Where I am at the moment is that it feels a) like a tax efficient store for wealth and b) a product that is counter volatility. The whole "flight to quality" etc during very "interesting times"
10-15 years ago, much like now, I was quite heavy in the stock market, didn’t like the non liquid property investment, so gold seemed a good idea as a bit of diversification (add to that a few watches and cars along the way).
dare I also say the tax efficiency and the fact I can cash in literally in minutes.
all of that said, not sure I’ll be buying anymore right now, price is high, if anything I may sell some. I have quite a bit of gold by way of chains and the like and may just scrap that in.
....point taken about the price being at an all time high but I just wish I'd bought $30,000 worth @ $230 per oz 25 years ago; would be worth $380,000 today!
But you would have had a similar return on any decent property you’d bought in the London area over the same time period.
You wouldn’t once you take off costs of maintaining and CGT……… none of those for gold (unless you pay to keep it somewhere)
Well, depending on when you sold it you'd have minimised CGT thanks to Osborne's tax change in 2016. And of course if you rented it out too, you more than covered the costs and deducted the costs from your taxable income.
Curious if anyone here has experience in gold. Personally I feel a tad nervous about everything going on at the moment and my exposure. To put it frankly, the returns can't keep being at this level and I'm a tad nervous we are in a bubble, in US markets in particular (please feel free to persuade me otherwise!)
I'm looking at potentially diversifying a bit into gold, which has actually outperformed the S&P 500 over the past year and I'm considering how best to do it.
Chards (associated with the royal mint) sell gold britannias etc at very close to spot price. These are exempt from CGT. (Are britannias the best vehicle, or are bars etc better? Britannias seem to have the tightest spread on buy/sell on Chards)
I am a bit concerned about potential CGT exposure which leads to me considering buying some physical gold. I'm not really inclined to go down the storage route, as there would be something cool about physically holding them...
If this were not the case, I would be tempted to buy gold through an ETF.
Just looking for people's experiences to stop me making any foolish errors!
I'm relatively heavy in gold but bought over the last 8-10 years and some inherited. 80% is in gold Sovereigns, legal tender so no CGT. Can't believe they are nearly £580 now, when I first stared they were a little bit under £200. I keep mine in the bank (I have a fair amount).
Thanks for that.
And just to ask, what is your reason to buy gold? Is it basically as a store of wealth that avoids CGT?
Where I am at the moment is that it feels a) like a tax efficient store for wealth and b) a product that is counter volatility. The whole "flight to quality" etc during very "interesting times"
10-15 years ago, much like now, I was quite heavy in the stock market, didn’t like the non liquid property investment, so gold seemed a good idea as a bit of diversification (add to that a few watches and cars along the way).
dare I also say the tax efficiency and the fact I can cash in literally in minutes.
all of that said, not sure I’ll be buying anymore right now, price is high, if anything I may sell some. I have quite a bit of gold by way of chains and the like and may just scrap that in.
....point taken about the price being at an all time high but I just wish I'd bought $30,000 worth @ $230 per oz 25 years ago; would be worth $380,000 today!
But you would have had a similar return on any decent property you’d bought in the London area over the same time period.
You wouldn’t once you take off costs of maintaining and CGT……… none of those for gold (unless you pay to keep it somewhere)
Well, depending on when you sold it you'd have minimised CGT thanks to Osborne's tax change in 2016. And of course if you rented it out too, you more than covered the costs and deducted the costs from your taxable income.
What property could I have bought in 2000 for $30k?
Comments
Partly depends what else you have and your tax situation, but in general always start with the most tax efficient, ISA's and Premium bonds are probably first port of call. That said, you mention 2 houses, other pensions and investments, so dare I say spend some or all of it! The holiday/s you've always wanted, the car, watch, the golf club membership - now is the time to live like you stole it
One thing to consider - just make sure that by taking the £100k you will not be approaching the max TFC allowance of £268275. The issue is that if you still have 2 DB schemes to take do these give you TFC as well ? Bearing in mind you've already taken 1 DB scheme already.
Just a point to consider.
Range Rovers and bitches it is then 😅
Rationally I already accept your case. But there’s emotion at work, and also the issue of where else to put the money. In the case of fixed interest bonds I have the added problem of some of the best solid ones demanding UK tax residenčy. Investec and DS Capital are two I currently have bonds with. Secure Trust, not stated. Charter Savings are perfectly OK with it but I am already near the protection limit with them. NS&I also ok with it but their rates are now less competitive. 6.2% a distant memory. Tedious.
i don’t think it’ll drop much below 4% this year, if at all, house prices and appreciating assets in general will continue to rise.
same old problem of only so much money in the system that continues to flow in one direction.
At the start of 2024 it was forecasted that there would be 5 or 6 between then & the end of this year with the Base Rate closing 2025 at 3.5%.
Then in the last draw a friend of mine won 25 grand. He'd sold some bonds to pay his tax bill last January and then bought them back in April with his bonus. That winning ticket was in that 11k batch.
Curious if anyone here has experience in gold. Personally I feel a tad nervous about everything going on at the moment and my exposure. To put it frankly, the returns can't keep being at this level and I'm a tad nervous we are in a bubble, in US markets in particular (please feel free to persuade me otherwise!)
I'm looking at potentially diversifying a bit into gold, which has actually outperformed the S&P 500 over the past year and I'm considering how best to do it.
Chards (associated with the royal mint) sell gold britannias etc at very close to spot price. These are exempt from CGT. (Are britannias the best vehicle, or are bars etc better? Britannias seem to have the tightest spread on buy/sell on Chards)
I am a bit concerned about potential CGT exposure which leads to me considering buying some physical gold. I'm not really inclined to go down the storage route, as there would be something cool about physically holding them...
If this were not the case, I would be tempted to buy gold through an ETF.
Just looking for people's experiences to stop me making any foolish errors!
And just to ask, what is your reason to buy gold? Is it basically as a store of wealth that avoids CGT?
Where I am at the moment is that it feels a) like a tax efficient store for wealth and b) a product that is counter volatility. The whole "flight to quality" etc during very "interesting times"
Id obviously then be looking at storing them.
Gold bars for example will not be CGT free, so the amount that you might save out in Dubai, you will lose many times over on selling them.
Personally, if I buy gold I will use them to store wealth in a tax efficient manner, and then sell them down in order to fill an ISA each year.
For me, 34, wanting to buy a bigger house in the next 10 years, I invest in this order:
1) Stocks and Shares ISA - £40k annually across a couple.
2) General investment account (to where my wife and I probably won't make more than CGT allowance of £6k a year combined) - £50k total across a couple approx assuming 10-12% growth
3) Gold, enough to ensure I can fill next couple year's ISA allowance, so about £80k
4) Pension
If I was in my "forever house" pension would switch to #1 once I had enough cash to cover any issues.
My simple logic says if the price differential is so favourable everyone would do it and then it wouldn’t be such a deal after all.
dare I also say the tax efficiency and the fact I can cash in literally in minutes.
all of that said, not sure I’ll be buying anymore right now, price is high, if anything I may sell some. I have quite a bit of gold by way of chains and the like and may just scrap that in.
by all means buy some, but maybe start a bit smaller than a £100k!