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Bocman
Posted: 31 May 2012 09:38:08(UTC)
#1

Joined: 29/05/2012(UTC)
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Hi all
i'am thinking of retireing i have a lump sum of £134,000. i will need some for easy accsess but what to do with the rest ? i would like to try and keep most of my collateral safe if poss,but would like a good return
sgjhaghsdg
Posted: 31 May 2012 11:38:05(UTC)
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An IFA would probably steer you towards an investment bond, which can be tax efficient. There are also purchased life annuities.

My plan for my lump sum is to buy a basket of Investment Trusts in my wife's name. There is no more tax on dividend income for basic rate tax payers and she should be able to get over 4%pa, which will rise over time.

We'll then use "Bed and ISA" to get everything into S&S ISAs as fast as we can. Inside those ISAs, we'll go for a mixture of ITs and other high-income equities.

You might get better answers on the Motley Fool's forums, probably the pensions board.
1 user thanked sgjhaghsdg for this post.
Bocman on 01/06/2012(UTC)
malcolm roberts
Posted: 31 May 2012 11:44:27(UTC)
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I have a opportunity which involves property i live on, it will not suit you if you cannot visit me at my home in person.
I am in Berkshire.
If you wish to make contact please do it through citywire.
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Bocman on 01/06/2012(UTC)
Bocman
Posted: 01 June 2012 05:40:48(UTC)
#3

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sgjhaghsdg;15080 wrote:
An IFA would probably steer you towards an investment bond, which can be tax efficient. There are also purchased life annuities.

My plan for my lump sum is to buy a basket of Investment Trusts in my wife's name. There is no more tax on dividend income for basic rate tax payers and she should be able to get over 4%pa, which will rise over time.

We'll then use "Bed and ISA" to get everything into S&S ISAs as fast as we can. Inside those ISAs, we'll go for a mixture of ITs and other high-income equities.

You might get better answers on the Motley Fool's forums, probably the pensions board.

Thanks for your answer but as this is my first time on any site such as this some of the info is a little puzzling ie is Bed and S&S are they both companies. my wife is still working and where is Motley Fool's forums. iam not that up to date with all the jargon
sgjhaghsdg
Posted: 01 June 2012 06:59:01(UTC)
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S&S ISA = Stocks and Shares ISA.

Holdings outside of an ISA are a pain as you have to track capital values, ensure that dividends don't push you into higher tax brackets, and such like. While you might be able to cope with this when younger, it gets harder with age, and the tax situation gets worse once state pensions kick in.

You therefore sell enough of your holdings every year to use up to (but not more than!) your annual capital gains allowance, and put the proceeds into a S&S ISA where you then buy the same or different assets. This is often called "Bed and ISA".

My wife is slowly accumulating unwrapped (not in pension or ISA) holdings in various companies and Investment Trusts. Some of these are designed to provide dividend income whereas others are in areas more likely to provide capital growth. Come retirement, we hang onto the income holdings, but start selling down the growth ones to then buy income ones inside ISAs.

Of course, we're still doing what we can with S&S ISAs now, but the annual subscription is limited.

Google for "motley fool forums" or go to boards.fool.co.uk - the board software sucks but it's worth sticking with as there are lots of smart people there.
TJL
Posted: 01 June 2012 09:18:26(UTC)
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Joined: 14/03/2011(UTC)
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Hello Bocman,
Hope this doesn't sound patronising - just trying to help.
If you want to invest, as opposed to save, your collateral is always going to be at risk, especially in the current climate.
If it is investing you are interested in, start with smallish amounts, don't commit large amounts into anything (unless it is zero risk of course) unless you are confident.
Regular investments are frequently advised, as you benefit from pound cost averaging.
There are lots of thing to consider, like your age, attitude to risk, other commitments etc.
If you don't know where to begin, a way to get the process started could be to divide your money into different pots, ready cash, not so ready cash, lower risk investments, higher risk investments - probably with the smallest amount in higher risk investments.
The most obvious choices will be tracker funds, unit trusts, or investment trusts; investment trusts are more complicated to understand but they generally have lower investment charges.
You will need to decide which investment platform you use - a big discussion topic in itself as they all have different advantages and disadvantages and charges.
You might find the Motley Fool discussion boards quite sophisticated in terms of content (I do).
You will get loads of free advice (opinion probably a better word) on this forum - ask away.
As already mentioned - use your (and your wife's?) Isa allowances first.
It could be argued that this is a good time to invest if you are in it for the long term what with all the worry about the Euro, but things will probably get worse before they get better.
Good luck - hope this helps.
TJL
banjofred
Posted: 02 June 2012 10:09:39(UTC)
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Bocman, ref tjl last comment

I find that no matter how carefully you select funds and shares, as a general rule when the market tanks they all pplumment, and when it slowly clims back, the slowly climb back

My point is that no matter what you do you place your pot at risk, and chances are you will lose some of it.

The % loss seems only to depend on the funds, for example Troy trojan you might lose half a percent whereas at the same time stalwarts like newton.artemis, neil woodford will be losing you say 5 or 6%, and the miners and gold and suchlike los eyou 25% to 30%

So the easiest way to quickly lose you money is to put it in dodgy miners funds

if you want to lose it slowly, put it in the top managers funds

Can anyone see a way we can return to steady growth on the "top" funds anytime soon?

Surley we are just watching for slight bounces before the big fall off the cliff??

I am heavy into cash right now - dont care if inflation erods it. it doesnt erode it as fast as First state global resources in the last year or so. (31%)

If you have hte pot now, the quesiton is have we seen the dip so its time to buy in (no), or is it going to tank completey with spain etc , which iwll be a good time to buy


Alternativley are you going to "miss" the next big rise? (Dont think so)
Hope I have scared you Boosman. that was my intention.

Keep your powder dry take a look at Troy Trojan

banjo



Dan Jones
Posted: 28 January 2013 22:49:44(UTC)
#8

Joined: 28/01/2013(UTC)
Posts: 5

I would suggest you purchase a property and collect rent. You could easily buy 2-3 properties, Put a deposit of around 50k on each property and then collect rent, pay mortgage and whatever is left is for you..

Wjavascript:__doPostBack('forum$ctl03$PostReply','')hilst you collect rent, the property prices will go up hopefully.
Martina
Posted: 29 January 2013 11:16:34(UTC)
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Joined: 28/11/2012(UTC)
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Hello Bocman, just out of interest, did you decide to retire? If so what were your choices of investment with that considerable sum of money?
I came into a similar financial position myself 20 months whereupon I was made redundant from the armed forces. With my lump sum I upped positions into numerous well known large UK equity Income, small caps, medium caps and bond funds that you'll see advertised or commented in the Sunday broad sheet money supps, within Investors Chronicle magazine and on Trustnet. Additionally and so far successfully, I delved into far eastern markets through Newtons Asian Income and First States Asia Pacific Leaders with some of Aberdeen Emerging Market fund for that little bit more spice. All of this though was before I first treated myself to a 4 month back packing break around Australasia
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