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by Hariseldon58
September 15th, 2019, 5:12 pm
Forum: Investment Strategies
Topic: Emergency Fund in Lifestratehy 60?
Replies: 6
Views: 582

Re: Emergency Fund in Lifestratehy 60?

Emergency Fund=NS&I Income Bond’s is my choice. Instant access effectively, zero capital risk and 1.16% Don’t confuse cash with corporate bonds, long gilts etc. You can get a return on risk assets and the lack of a great return on NS&I income bonds is the “insurance premium” you pay for tota...
by Hariseldon58
September 10th, 2019, 12:58 pm
Forum: Retirement Investing (inc FIRE)
Topic: BIG decision to make!
Replies: 34
Views: 1592

Re: BIG decision to make!

An interesting question that has drawn a lot of sensible responses. I noted the remark about investing the 650k and growing to a £1m over 11 years. My situation was a similar sum in late 2007 ( about £800k) and 12 years on , it has supported a comfortable life style since and has grown to about £2m ...
by Hariseldon58
September 4th, 2019, 9:37 pm
Forum: Portfolio Management & Review
Topic: OLTB's Passive, IT and Small Cap Portolio - 2nd anniversary
Replies: 4
Views: 770

Re: OLTB's Passive, IT and Small Cap Portolio - 2nd anniversary

I would not be too despondent, you have a lot of years to go. I’m not too sure I would over emphasise the IT part of the portfolio. The IT portfolio is very reminiscent of a John Baron portfolio mix and I used many of these last year when I took a more active role when I thought that the Brexit mess...
by Hariseldon58
August 30th, 2019, 1:20 pm
Forum: Retirement Investing (inc FIRE)
Topic: "Keep two years' expenditure in cash"
Replies: 18
Views: 2198

Re: "Keep two years' expenditure in cash"

It’s a good question of how much cash to have... I retired in November 2007 with a very heavy equity bias to my portfolio, not a lot of cash and some property income. We know what happened next and the maximum drawdown I experienced was close to 50%.... As previously mentioned dividend income held u...
by Hariseldon58
August 29th, 2019, 6:08 pm
Forum: Investment Strategies
Topic: US defensive exposure: BRK-B?
Replies: 5
Views: 668

Re: US defensive exposure: BRK-B?

I previously held Berkshire and would agree with he comments by salvor Hardin. I have decided that the bulk of my US exposure is via an S&P500 tracker and UC07 , a US large value ETF from UBD. It’s a low cost way of holding the larger US corporations minus the expensive ones, this may or may not...
by Hariseldon58
August 16th, 2019, 1:44 pm
Forum: Investment Strategies
Topic: Bond funds for reduced volatility
Replies: 6
Views: 1236

Re: Bond funds for reduced volatility

Good luck !!! Seriously it’s not going to be easy....NS&I are secure and rates are not that different from short corporate bonds and better than gilts with no volatility over capital values. Used to hold IS15 but YTM of portfolio is a shade over 1.5% , deduct the .2% management fee and it’s hard...
by Hariseldon58
August 13th, 2019, 10:41 am
Forum: Passive Investing
Topic: ETF suggestions
Replies: 6
Views: 1599

Re: ETF suggestions

The life strategy from Vanguard is good but without changing platforms then how about a similar underlying portfolio, Vanguard VUKE for the FTSE, Vanguard VEVE for developed world and VFEM for emerging markets. The ratio would be something like 2 parts VUKE, 7 parts VEVE and 1 part VFEM You could us...
by Hariseldon58
August 12th, 2019, 6:41 pm
Forum: Retirement Investing (inc FIRE)
Topic: Considering early retirement
Replies: 71
Views: 5193

Re: Considering early retirement

At 60, having retired 12 years ago on a similar sum taking into account inflation, it worked and the pot has grown substantially. The tax advice etc should be separated from the financial advice. (See an accountant, who specialises in taxation) The idea of an income of about 4% of capital, give or t...
by Hariseldon58
August 12th, 2019, 6:19 pm
Forum: Investment Strategies
Topic: ETFs outside of wrappers - "excess reportable income"
Replies: 19
Views: 1325

Re: ETFs outside of wrappers - "excess reportable income"

Uh? Are you saying the the amount of the ERI in, say, this year will be distribute d by being added onto a dividend the next year? My understanding is that the fund has an amount of income in a fund tax year and if that exceeds the distribution then that income is reported. I suspect that the exces...
by Hariseldon58
August 12th, 2019, 3:45 pm
Forum: Investment Strategies
Topic: ETFs outside of wrappers - "excess reportable income"
Replies: 19
Views: 1325

Re: ETFs outside of wrappers - "excess reportable income"

On the size of ERI for an ETF that distributes income in a taxable account, I took a look at my tax info for last year and my largest amount of ERI was £45 on a £90k holding that distributes about £2,000 in regular dividends, so about 0.05% or around 2% of the actual dividend. The accumulation ETFs ...
by Hariseldon58
August 12th, 2019, 3:16 pm
Forum: Investment Strategies
Topic: ETFs outside of wrappers - "excess reportable income"
Replies: 19
Views: 1325

Re: ETFs outside of wrappers - "excess reportable income"

The income arises in a period of 12 months, income is distributed over a 12 month period but there is a question of monies coming in from potentially thousands of holdings, these accumulate and will sent out as dividends every 6 months, 3 months and even monthly, there will be taxes paid, fee expens...
by Hariseldon58
August 11th, 2019, 10:32 pm
Forum: Investment Strategies
Topic: ETFs outside of wrappers - "excess reportable income"
Replies: 19
Views: 1325

Re: ETFs outside of wrappers - "excess reportable income"

In taxable accounts ensure the ETF has reportable status, if not gains are taxed as income. ( Holding these in a tax sheltered account is sensible) Some ETFs do not distribute income and are thus like accumulation units in an OEIC/unit trust. The regular distributions/dividends are taxed as foreign ...
by Hariseldon58
August 9th, 2019, 11:01 pm
Forum: Investment Trusts and Unit Trusts
Topic: ZDPs
Replies: 13
Views: 1545

Re: ZDPs

Going back to the problems with Splits in the early 2000’s , I had lots of investment trusts then. Around 6 months before the problem came to public notice, I bought a soft back A4 sized Guide to Investing published by the FT , it had some useful stuff and a couple of pages on Split Capital Trusts ,...
by Hariseldon58
August 9th, 2019, 10:46 pm
Forum: Property Investment Discussions
Topic: Holiday Homes - Lodges/Static Caravans
Replies: 13
Views: 1255

Re: Holiday Homes - Lodges/Static Caravans

Living in Dorset close to the coast, I have visited several of the sites photographing lodges for owners renting. Some locally can fetch up to £500,000 ....for a 30 year licence with a fabulous location, annual site fees are around £6,000 , there is an active rental market. If you sell, you can gene...
by Hariseldon58
August 9th, 2019, 8:34 am
Forum: Retirement Investing (inc FIRE)
Topic: Returning expats seeking advice.
Replies: 20
Views: 2206

Re: Returning expats seeking advice.

I’d second the excellent advice from TheRIT Re tax advice and investing etc. Given you have 3 or 4 years notice, subject to tax advice would you be able to start the process of buying UK listed investments now ? It eases the big question of market timing from Aus $ to £. The £30k pa sounds about rig...
by Hariseldon58
August 7th, 2019, 10:03 am
Forum: Passive Investing
Topic: Can someone explain currency risk/impact switching between UK shares to US shares?
Replies: 2
Views: 450

Re: Can someone explain currency risk/impact switching between UK shares to US shares?

If I could add that the diversification away from the UK if you are largely exposed to the UK is generally considered a good idea. The present situation is rather exceptional, the outlook for the uk is .....uncertain. I mistakenly tried some market timing around this time last year and moved a very ...
by Hariseldon58
July 31st, 2019, 11:10 pm
Forum: Investment Strategies
Topic: ETF's v Unit Trusts(or OEIC's) v Investment Trusts
Replies: 22
Views: 1610

Re: ETF's v Unit Trusts(or OEIC's) v Investment Trusts

As I have recently experienced, an ETF can suddenly close and liquidate, if it fails to gain sufficient size to be profitable.... Might be prudent to ensure your ETF is of a reasonable size and think about the provider. Given that the ETF concerned contained a subset of FTSE companies with a record ...
by Hariseldon58
June 27th, 2019, 9:31 pm
Forum: Investment Strategies
Topic: What return are you targeting?
Replies: 91
Views: 7214

Re: What return are you targeting?

@jaizen My target is to optimise the portfolio to get >10% real return. However, the requirement & expectation is to do RPI + 3% A real rate of return of 10% would be ..challenging :) 29 years and I have achieved around 10% nominal pa, but I am far less optimistic going forward, I rather think w...
by Hariseldon58
June 26th, 2019, 11:16 am
Forum: Passive Investing
Topic: Any suggestions for an ETF based portfolio (income & growth)?
Replies: 5
Views: 4809

Re: Any suggestions for an ETF based portfolio (income & growth)?

@genou

Any decision re overseas / UK exposure is overshadowed by the currency factor, it seems likely is either undervalued/over valued by a fair margin and the market ( nobody ?) really knows ! It's hard to make any rational change in currency allocation when we have so much uncertainty.
by Hariseldon58
June 18th, 2019, 10:52 pm
Forum: Investment Trusts and Unit Trusts
Topic: Popularity of Unit Trusts?
Replies: 26
Views: 1793

Re: Popularity of Unit Trusts?

I like IT’s but for a novice investor they must contend with additional volatility from the discount and the effect of gearing. An advisor has more work to do when explaining Investment Trusts and might feel the benefits are not sufficient to justify his efforts. Some Unit Trusts are low cost and so...

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