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RickyD

Is it a good time to buy bonds?

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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?

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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!! 

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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.

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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.....

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