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Practical management of different pots

Stocks and Shares ISA , Choosing funds for ISA's, risk factors for funds etc
Investment strategy discussions not dealt with elsewhere.
scrumpyjack
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Re: Practical management of different pots

#352422

Postby scrumpyjack » November 1st, 2020, 11:27 am

A few more points that have not been raised.

ETF's vs Investment Trusts: ITs can have gearing and many do have about 10 - 15% gearing. You may or may not want that but if equity markets rise, other things being equal, the geared IT will do better than the ungeared ETF. The converse is also obviously true.

ISA vs SIPP: IMO pensions are in the long term politically likely to be more favoured by governments than ISAs, and in the past when there have been higher taxes on 'unearned' rather than 'earned' income, pensions were classified as earned. I can easily see a future government scrapping the tax breaks for ISAs.

Investment policy: My current intention is that my SIPP goes to my children, so I am happy to take a longer term, and possibly higher, risk profile than if it were to provide me with a retirement income.

vagrantbrain
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Re: Practical management of different pots

#352428

Postby vagrantbrain » November 1st, 2020, 12:00 pm

scrumpyjack wrote:A few more points that have not been raised.

ETF's vs Investment Trusts: ITs can have gearing and many do have about 10 - 15% gearing. You may or may not want that but if equity markets rise, other things being equal, the geared IT will do better than the ungeared ETF. The converse is also obviously true.

ISA vs SIPP: IMO pensions are in the long term politically likely to be more favoured by governments than ISAs, and in the past when there have been higher taxes on 'unearned' rather than 'earned' income, pensions were classified as earned. I can easily see a future government scrapping the tax breaks for ISAs.

Investment policy: My current intention is that my SIPP goes to my children, so I am happy to take a longer term, and possibly higher, risk profile than if it were to provide me with a retirement income.


I've wondered about this myself, but I can see it being self-defeating as a lot of the wealth would simply get transferred to pensions thus defeating the aim of increasing the tax take in the short-medium term. What extra was raised would be offset by the increase in the workload for HMRC, plus a decrease in savings rates leaving even more future funding problems for the government.

richfool
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Re: Practical management of different pots

#352467

Postby richfool » November 1st, 2020, 1:56 pm

monabri wrote:Avoid the small uns like TJH suggested...I learned that the hard way. :(

Would you consider Jarvis IM - X-O a small one? Established 30 years. £86 million market capitalisation. Listed on the AIM index!

https://find-and-update.company-informa ... ng-history

https://www.hl.co.uk/shares/shares-sear ... -gbp0.0025

http://www.jarvisinvest.co.uk/

https://www.jarvisim.co.uk/#/

monabri
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Re: Practical management of different pots

#352486

Postby monabri » November 1st, 2020, 4:06 pm

It is not a case of whether I think it is "small" ...at 86m it is pretty small.

PrefInvestor
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Re: Practical management of different pots

#352598

Postby PrefInvestor » November 2nd, 2020, 10:35 am

richfool wrote:Would you consider Jarvis IM - X-O a small one? Established 30 years. £86 million market capitalisation. Listed on the AIM index!


Well richfool, when it comes to brokers I personally think that you have to consider the following key points:-

1. If you only have one broker, could you manage if they went into administration ?. bearing in mind that would mean no dividend payments until the issue was resolved and inability to access your money or trade possibly for an extended period ?. Could you survive in that scenario ?.
2. If you have more than the FSCS compensation limit of £85,000 with one broker, could you survive if you lost anything in excess of that ?. That’s probably an unlikely scenario in any broker failure, but NOT an impossible one.
3. You can find out a lot about your broker by looking at their info lodged at companies house, including their profitability, number of people they employ etc. Take a good look at all that stuff as it might just affect your confidence in terms of their stability / durability etc..

These are just my personal views, but I would endorse the views expressed by others in this thread that it is much better to stick with large brokers who are far less likely to encounter significant problems. But it is a personal choice. IMV choosing a broker just to obtain lower trading costs is a false economy.

But DYOR etc. !

ATB

Pref

scrumpyjack
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Re: Practical management of different pots

#352599

Postby scrumpyjack » November 2nd, 2020, 10:41 am

monabri wrote:It is not a case of whether I think it is "small" ...at 86m it is pretty small.


Compared with HL's market cap of 6.5 billion, 86m is tiny.
I know which I would feel safer having my money with.


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