Is a Capital Gain Capital at Risk
Posted: January 17th, 2017, 5:19 pm
I have a lot of PIBS and most are showing a good profit. A year or two ago I could not envisage selling any of them as the spread was so bad, I thought bought for life. The income was good and gross in the Sipps and ISA. Recently I have been badly burned by Manchester 8% and may have to wait years if at all for the interest to start again. The last time this happened I bought Northern Rock Pibs for buttons and made a good profit when they were redeemed. At the weekend I noticed a comment about Skipton Building Society messing about with clients investments and decided to take that as a bad sign, so I have sold off some of my stock.
This has now made me consider the others. It is a fact that the good profits will disappear when the interest rates start rising. Most governments want this to help wipe out their massive debts, so I think 2018 will be the year both in the UK and USA. So I will sell more but still hold on to some.
There is no Capital Gains tax on Pibs in the taxable account so that is good. I ran a screen today and found 36 shares and IT's that have a dividend of
over 6%. I will aim for 6.5% which should replace the income lost due to the sale of the PIBS. I may buy some new shares and top up existing shares to replace the PIBS. Spread the load.
As in the heading a capital gain is capital at risk.
Bob
This has now made me consider the others. It is a fact that the good profits will disappear when the interest rates start rising. Most governments want this to help wipe out their massive debts, so I think 2018 will be the year both in the UK and USA. So I will sell more but still hold on to some.
There is no Capital Gains tax on Pibs in the taxable account so that is good. I ran a screen today and found 36 shares and IT's that have a dividend of
over 6%. I will aim for 6.5% which should replace the income lost due to the sale of the PIBS. I may buy some new shares and top up existing shares to replace the PIBS. Spread the load.
As in the heading a capital gain is capital at risk.
Bob