FredBloggs wrote: Time to move on.
Changes to the dividend tax rules make a high equity income approach less attractive outside of ISAs and SIPPs. If you have £ 50,000 and are making 4%, you will use up the dividend allowance from the next tax year.
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FredBloggs wrote: Time to move on.
Alaric wrote:Changes to the dividend tax rules make a high equity income approach less attractive outside of ISAs and SIPPs. If you have £ 50,000 and are making 4%, you will use up the dividend allowance from the next tax year.
Wizard wrote:It does somewhat chime with the point raised on one of the threads on the Portfolio Review board, maybe HYP is not so great in a build phase where income is being reinvested and therefore TR is the objective. Maybe better to accumulate by other means and then at the point where the income is required look at HYP as an option.
Terry.
kempiejon wrote:
The HYP is not the "best" strategy but it is suitable for my purposes, I suggest that some times the best strategies cease to be so and there's a "new best" strategy along to replace that; one may as well stick with a "good enough" HYP. Or of course have more than just one strategy.
. Unitised Change
. Ordinary RPI Ordinary RPI
Year to Divs/unit Divs/unit
05-Apr-88 2.83 101.80
05-Apr-89 2.25 114.30 -20.38% 12.28%
05-Apr-90 3.40 125.10 51.11% 9.45%
05-Apr-91 4.67 133.10 37.21% 6.39%
05-Apr-92 5.94 138.80 27.25% 4.28%
05-Apr-93 5.52 140.60 -7.12% 1.30%
05-Apr-94 5.31 144.20 -3.81% 2.56%
05-Apr-95 6.45 149.00 21.55% 3.33%
05-Apr-96 6.27 152.60 -2.85% 2.42%
05-Apr-97 7.13 156.30 13.74% 2.42%
05-Apr-98 7.55 162.60 5.93% 4.03%
05-Apr-99 7.92 165.20 4.93% 1.60%
05-Apr-00 10.79 170.10 36.11% 2.97%
05-Apr-01 11.39 173.10 5.61% 1.76%
05-Apr-02 12.46 175.70 9.36% 1.50%
05-Apr-03 11.68 181.20 -6.22% 3.13%
05-Apr-04 11.13 185.70 -4.70% 2.48%
05-Apr-05 13.03 191.60 17.01% 3.18%
05-Apr-06 14.21 196.50 9.11% 2.56%
05-Apr-07 15.18 205.40 6.78% 4.53%
05-Apr-08 20.19 214.00 33.01% 4.19%
05-Apr-09 21.60 211.50 6.97% -1.17%
05-Apr-10 11.91 222.80 -44.84% 5.34%
05-Apr-11 16.28 234.40 36.67% 5.21%
05-Apr-12 19.15 242.50 17.62% 3.46%
05-Apr-13 20.92 249.50 9.23% 2.89%
05-Apr-14 21.35 254.80 2.07% 2.12%
05-Apr-15 22.43 258.00 5.05% 1.26%
05-Apr-16 22.78 261.40 1.57% 1.32%
05-Apr-17 25.38 270.60 11.42% 3.52%
05-Apr-18 26.61 275.80 4.86% 1.92%
taken2often wrote:Selling stock and using the funds to live off, is the sale of capital and only £3000 per year is IHT free.
kempiejon wrote:Wizard wrote:Well, the evidence seems to be building that over the last six or seven years HYP has not been as good a strategy for accumlation as ITs / OIECs / ETFs.
Terry.
There is some evidence to support that, but only certain IT/ETF/OIECs of course; now what to buy for the next 6 years? Perhaps we are seeing that some HYPers or disillusioned HYPers are really good at picking collectives for accumulation? In my own investing my FTSE250 value strategy is beating my HYP income strategy on a capital and total return basis but the income is lower than my HYP.
Degsy67 wrote:My experience of HYP is that it is a strategy which is higher risk than many strategies based around collective investments involving ITs and ETFs. ...
...
Risk vs reward is a fundamental investment concept. HYP masks some of the risk by expecting investors to turn a blind eye to capital values (share price) ...
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