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A serious portfolio question

General discussions about equity high-yield income strategies
colin
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Re: A serious portfolio question

#138455

Postby colin » May 11th, 2018, 11:30 pm

Thanks for your comments TJH, though I think if I were in Minerjoes situation I would be making use of Occam's razor.

Muddywaters
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Re: A serious portfolio question

#138630

Postby Muddywaters » May 12th, 2018, 9:04 pm

I have a 3 and 1 year old. Both lifestrategy 100 acc for me. Fire and forget monthly contributions into jisas

OhNoNotimAgain
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Re: A serious portfolio question

#139123

Postby OhNoNotimAgain » May 15th, 2018, 9:16 am

tjh290633 wrote:
colin wrote:
On that point I am thinking of setting aside £4k to start the pot off.


work out how much it will cost you to reinvest dividends , it's not really worth buying individual shares unless you have a portfolio value of 100K or more,the transaction costs as a percentage of the portfolio is just too high. So go for some kind of fund that accumulates dividends.

If you are adding to your pot from time to time, then just add the accumulated dividends to the sum available to buy new shares. If you are in a platform which charges a percentage to reinvest dividends, then you can choose that route, otherwise let them build up until you have enough to make an economic purchase.

Funds suffer from the level of ongoing charges, or from initial charges if applied.

TJH


and brokers charge you an inactivity fee.

Anyone holding your shares for you incurs custodian costs and you have to pay that one way or another.

toofast2live
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Re: A serious portfolio question

#139179

Postby toofast2live » May 15th, 2018, 12:53 pm

and brokers charge you an inactivity fee.
.


Not my broker, Hargreaves Lansdowne. Pretty low annual charge for holding shares as well. I wouldn’t bother with a broker that charged inactivity fees unless dealing cost was very low.

DiamondEcho
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Re: A serious portfolio question

#139217

Postby DiamondEcho » May 15th, 2018, 5:17 pm

OhNoNotimAgain wrote:and brokers charge you an inactivity fee. Anyone holding your shares for you incurs custodian costs and you have to pay that one way or another.

Not sure which brokers you're talking about, but thought I should highlight that most brokers are earning income from stock-lending your long positions.

OhNoNotimAgain
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Re: A serious portfolio question

#139351

Postby OhNoNotimAgain » May 16th, 2018, 12:08 pm

DiamondEcho wrote:
OhNoNotimAgain wrote:and brokers charge you an inactivity fee. Anyone holding your shares for you incurs custodian costs and you have to pay that one way or another.

Not sure which brokers you're talking about, but thought I should highlight that most brokers are earning income from stock-lending your long positions.


Brokers do not lend stock, or at least they shouldn't, fund managers might.
Everyone involved in holding other people's assets has to pay custodian fees and probably Trustee fees as well. In addition they have to fund Tier 1 capital that just sits there doing nothing. But costs a lot to build up.

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Re: A serious portfolio question

#139399

Postby DiamondEcho » May 16th, 2018, 4:38 pm

OhNoNotimAgain wrote:Brokers do not lend stock, or at least they shouldn't, fund managers might.

Interactive Brokers do, and I get paid part of the income they earn from lending my positions.
'Stock Yield Enhancement Program FAQs https://ibkr.info/node/1838/

OhNoNotimAgain
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Re: A serious portfolio question

#139595

Postby OhNoNotimAgain » May 17th, 2018, 3:32 pm

DiamondEcho wrote:
OhNoNotimAgain wrote:Brokers do not lend stock, or at least they shouldn't, fund managers might.

Interactive Brokers do, and I get paid part of the income they earn from lending my positions.
'Stock Yield Enhancement Program FAQs https://ibkr.info/node/1838/


Oh OK, you learn something new every day. I assume it is a US broker, does it lend out UK stocks and what is the income?

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Re: A serious portfolio question

#139616

Postby DiamondEcho » May 17th, 2018, 4:27 pm

I can't currently say as I'm enrolled but have been ineligible for a few years while I've been on margin. But by July I'll be margin free so will focus on it again. What I can say though is that for UK shares it's [or was] only worthwhile enrolling if you hold some of the more 'mega-cap' shares in the FTSE-100, that's where their stock-lend business seemed focused for the LSE.
I'm sure you cld google on say FTSE-100 stock-lend fees and get a rough idea, then that linked IB-FAQ breaks down how they split the income with clients.

ps. It is a US parent company, but that's effectively transparent to me. As I've moved around for work they've flipped my entity from London to Hong Kong, and currently another subsidiary of theirs. I only notice if I need to call them, I have to re-check the contact number for the applicable regional office.


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