RickyD Posted November 15, 2016 Share Posted November 15, 2016 With the recent massive sell off in government bonds, due to inflation fears, does this make UK Government Bonds look like a good buy? Or do we think they have a long way to drop yet? Quote Link to comment Share on other sites More sharing options...
RickyD Posted November 19, 2016 Author Share Posted November 19, 2016 An interested article about GILTS. http://www.telegraph.co.uk/business/2016/10/17/qa-why-are-yields-on-uk-government-bonds-shooting-up-and-should/ Quote Link to comment Share on other sites More sharing options...
wish I could afford one Posted November 19, 2016 Share Posted November 19, 2016 RickyD, have you started to dip your toe into the investing world by starting to buy as yet? Quote Link to comment Share on other sites More sharing options...
RickyD Posted November 19, 2016 Author Share Posted November 19, 2016 1 hour ago, wish I could afford one said: RickyD, have you started to dip your toe into the investing world by starting to buy as yet? Yes. I already had cash, gold and some tech stocks and some other investments such as maturing whisky in the barrel. I'm now in the process of changing this into a low cost rational portfolio, such as recommended by Hale, Kroijer, etc. One of the biggest revelations for me (excuse my ignorance) was that UK tax payers can add a lump sum into a pension SIPP of up to £40,000 (in most cases) and the government will top this up with the 20% tax that you previously paid. So it's basically FREE MONEY!! Quote Link to comment Share on other sites More sharing options...
wish I could afford one Posted November 19, 2016 Share Posted November 19, 2016 3 hours ago, RickyD said: Yes. I already had cash, gold and some tech stocks and some other investments such as maturing whisky in the barrel. I'm now in the process of changing this into a low cost rational portfolio, such as recommended by Hale, Kroijer, etc. One of the biggest revelations for me (excuse my ignorance) was that UK tax payers can add a lump sum into a pension SIPP of up to £40,000 (in most cases) and the government will top this up with the 20% tax that you previously paid. So it's basically FREE MONEY!! Re your pension comment. Pensions are just a tax deferral scheme (you get full relief now in exchange for paying later, at least for now and tax free lump sum excepted) and in exchange for that the risk you take is the government changes the rules which they've demonstrated they are prepared to do a lot. So if you're a 40% payer now and you'll be a 0%/20% payer later then they're great excepting the tinkering risk. I personally have 44% of my wealth in pensions as I type this. Good luck with your investment journey. I loosely followed the Hale approach and it has certainly worked for me. Quote Link to comment Share on other sites More sharing options...
RickyD Posted November 22, 2016 Author Share Posted November 22, 2016 On 19/11/2016 at 6:33 PM, wish I could afford one said: Pensions are just a tax deferral scheme Ah yes. This brilliant article on Monevator explains this very well indeed. http://monevator.com/pensions-versus-isas/ Quote Link to comment Share on other sites More sharing options...
RickyD Posted November 25, 2016 Author Share Posted November 25, 2016 I should have named this thread 'Is it a bad time to buy bonds?' lol It appears we're seeing a great shift away from Bonds at the moment. Quote Link to comment Share on other sites More sharing options...
VeryMeanReversion Posted December 7, 2016 Share Posted December 7, 2016 On 19/11/2016 at 6:33 PM, wish I could afford one said: Pensions are just a tax deferral scheme Income tax deferral e.g. 40% to effectively 15% if you later become are 20% tax payer and take the tax-free quarter National Insurance avoidance e.g. 12+2% Benefit maximisation e.g. keep child benefit if sacrifice to <£50K. Worth 17% for two kids, more for more..... Quote Link to comment Share on other sites More sharing options...
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