Buying Shares

[Notafettler]

Err, index-linked gilts?
https://moneyterms.co.uk/gilts/index-linked/

I was talking about bonds not gilts although they work the same gilts are backed by the government bonds are not.
Feel free to point out how these are good value

https://www.hl.co.uk/shares/corporate-bonds-gilts/bond-prices/uk-index-linked-gilts

Note the starting yields and the prices. The redemption price is £100.

Treasury 0.125% 2068 GBP | GB00BDX8CX86 | BDX8CX8

0.125

22 March 2068

287.150

Return in 2068 is £100. To buy now £287.150

 

[shirokazan]

Gilts are bonds. Bonds can either be issued by governments (UK gilts, US Treasuries) or companies (corporate bonds). Your text didn't distinguish.

 

[Brads]

Far easier putting money into a SIPP with someone like Intelligent Money.

You can move investments about to expand or reduce exposure to equities, but you are doing it in a safer SIPP wrapper which also attracts tax relief on the money you fire into it.

How it was best put to me is , "It's better to have time in the market rather than trying to time the market"

 

[Profpointy]

A neighbour is florist the dutch have literally bined all there tulips. The "recovery " is a long way off!!

Sounds like there'll be a shortage of tulips so the price is bound to go up

 

[Notafettler]

Far easier putting money into a SIPP with someone like Intelligent Money.

You can move investments about to expand or reduce exposure to equities, but you are doing it in a safer SIPP wrapper which also attracts tax relief on the money you fire into it.

How it was best put to me is , "It's better to have time in the market rather than trying to time the market"

Good point....BUT..I just bought in as the market fell, at the bottom and as the market rose again. Example I bought Smithson investment Trust It was on a ridiculous 19% discount to NAV(roughly). It is never been on a discount before.
I bought perpetual income and growth on 26% discount (it was on an average of 16% discount for last 12 months). And 8% dividend.
Dividend bias investment trusts have a dividend reserve. They will all have enough to increase there dividend for at least one year. Emphasis on at least.

I am up 55% on Smithson (no dividend payments)
I am up 16% on perpetual with an 8% dividend
A discount means I am buying below its actual worth. In the case of perpetual I paid 74p for every £1 worth of assets (the underlying shares they own).
The latter is not possible with funds including etfs.
I bought 4 other investment trusts roughly I am up 12% with an average dividend of 7%. Just what I need for retirement.
Roughly you will pay .4% year on all investment in your ISA. On a fund and share account there are no ongoing fees.

You have a £12,500 income tax allowance
A starter £5,000 savings tax allowance which includes the income from bonds, investment trusts and funds.
A £2,000 dividend tax allowance.
A Ordinary savings tax allowance of £1,000 (bank savings)
Capital gains tax allowance of £12,300.
I have an income (prior to any dividends) of £120.
Even when I get my state pension, (3 years) there is virtually no chance of me paying tax.
ISA equals shite....for me.

 

[Notafettler]

Sounds like there'll be a shortage of tulips so the price is bound to go up

They cut the tulip flowers not the bulbs. At the end of covid19 there will be more tulips not less. The bulbs "replicate " not the right word.

 

[Notafettler]

You can move investments about to expand or reduce exposure to equities,

By the way your first statement is contradicted by your second statement:-

"It's better to have time in the market rather than trying to time the market"

Your first statement involves trying to time the markets.

 

[Notafettler]

PS I might have timed the market correctly or I might not. My crystal ball is always fogged up unlike some market pundits.
BUT I know when the market is cheap.....relative to the past.

 

[Notafettler]

Gilts are bonds. Bonds can either be issued by governments (UK gilts, US Treasuries) or companies (corporate bonds). Your text didn't distinguish.

I shouldn't need to. £268 to buy with a redemption price of £100 in 2068.
Starting dividend 0.125%.
Do you really think you will beat inflation? You will loose £168 in 48 years time. Plus you have started on dire interest rate. You will in fact continue getting .125 % interest for the whole of that 48 years as inflation rises your income will remain the same (your buying power)
All of the latter assume you buy the bonds at the issue price of £100 assuming that is what they sold at, it doesn't have to have been, as the £100 is the redemption price.
Of course if the latter is true you could sell for capital gain of £168....sweet !!!!
I have lost interest now.
There are more things to consider. I can't be arsed explaining them!

 

[Profpointy]

They cut the tulip flowers not the bulbs. At the end of covid19 there will be more tulips not less. The bulbs "replicate " not the right word.

Oh, in that case, I'll go for that South Seas investment then instead...

 

[Notafettler]

Now your talking!!

 

[Notafettler]

SIPP and ISA Hargreaves Lansdowne 0.45% a year on all investments (no charge for cash). Fund and share account nil ongoing charges.
Many many moons ago you used to be able to "bed and breakfast" shares.
To create an capital gain below the allowance you could sell your shares and the market maker would sell them you back the next day at the same price for fee. Not allowed anymore but you can bed an ISA shares. No idea of the fees but if I was lucky enough to need to, I would.

 

[Brads]

By the way your first statement is contradicted by your second statement:-



Your first statement involves trying to time the markets.

No it doesn't. What I meant , and said , was that you can change portfolios to various equity percentages. You can change you're risk factor. You are not trading.

 

[Notafettler]

Far easier putting money into a SIPP with someone like Intelligent Money.

You can move investments about to expand or reduce exposure to equities, but you are doing it in a safer SIPP wrapper which also attracts tax relief on the money you fire into it.

How it was best put to me is , "It's better to have time in the market rather than trying to time the market"

No it doesn't. What I meant , and said , was that you can change portfolios to various equity percentages. You can change you're risk factor. You are not trading.

I said nothing about trading. You are changing your portfolio, that's timing the market. Why else would you change it if your not trying to time the markets.
What are you changing it to? Maybe a better way of putting it is what other assets are there to put your money in when you lower your equity percentage?
I don't understand what is "safer" about a SIPP wrapper? Great for tax relief...even if you don't pay tax!!
I have no knowledge of intelligent money.

 

[Brads]

Timing the market is trading.
Changing a portfolio is changing your risk strategy, not trading, or indeed timing the markets.

Portfolios are made up of equity plus gilts, bonds, gold cash etc etc. You can choose your mix.

As for the rest, google it.