How to invest £160k

[scubascuba3]

 
No.  Existing ISAs keep their tax free status if you become non-resident.  However, you are not permitted to open new ISAs.

Finally, I've learnt something from a thread

[Farangdanny]

1 hour ago, suzannegoh said:

He didn't say anything about the fund that you recommended, he commented about IFA's underperforming the S&P500 and other major indices.

Read the last sentence again.

[Farangdanny]

1 hour ago, scubascuba3 said:

2 hours ago, Farangdanny said:

Catman, do you always make false statements without knowing the truth ? You might get sued.  The fund I mentioned is run by private investors for the benefit of private investors. NO monthly fees, or salaried managers. 

So how does it work? Amateur private investors get together and agree on stocks to buy and sell? What was the performance the last 1, 5, 10 years?

Why not look at the website.

[RIC23]

You can invest in my Dive company & have an annual income, for life

 

[12DrinkMore]

5 hours ago, Oxx said:

 

But not from income or capital gains from investments in shares and bonds.  There is no further tax to pay for non-residents.

 

Unfortunately not true.

 

Any income or capital gains made in the UK is subject to tax.

 

But don't believe me, here are the links.

 

https://www.gov.uk/capital-gains-tax

 

https://www.gov.uk/tax-on-dividends

 

 

[scubascuba3]

Why not look at the website.

Its not worth the effort, doesn't sound very good

[simoh1490]

9 minutes ago, 12DrinkMore said:

 

Unfortunately not true.

 

Any income or capital gains made in the UK is subject to tax.

 

But don't believe me, here are the links.

 

https://www.gov.uk/capital-gains-tax

 

https://www.gov.uk/tax-on-dividends

 

 

I'm non-resident UK but I maintain two investment portfolios of funds in the UK on the Transact platform, one is effectively a SIPP, the other general investments comprising 13 funds. Profits on the pension are of course tax free and I don't take a drawdown, I just reinvest the profits with the intention of leaving the pot to my wife tax free. But the second portfolio combines Inc. and Acc funds, all of which are tax free, within the personal allowance. Transact gets a figure from The Revenue each year and posts it online to my trading account so I can see where my tax threshold is, they also claw back all tax deductions made by funds that I trade in, as and when necessary and credit my cash account.

[speedtripler]

On 03/01/2018 at 12:31 PM, Sirbergan said:

Read up on Crytpocurrencies, going more and more mainstream and will keep growing. There have been crazy returns (1000 times your money and more in less than a year) for a lot of coins. XRP, though it has already "popped" and is trading at a bit above 2 dollars, will continue to grow for sure imo.

It's 3.50 today but op should seriously take a look at coinmarketcap.com 

 

Even a small investment in the top handful of coins will do wonders for a portfolio 

[Oxx]

28 minutes ago, 12DrinkMore said:

6 hours ago, Oxx said:

 

But not from income or capital gains from investments in shares and bonds.  There is no further tax to pay for non-residents.

 

Unfortunately not true.

 

Any income or capital gains made in the UK is subject to tax.

 

But don't believe me, here are the links.

 

https://www.gov.uk/capital-gains-tax

 

https://www.gov.uk/tax-on-dividends

 

Please don't question me when you are clearly totally ignorant about the subject.  Those links are for UK residents, not non-residents.

 

There is no further income tax to pay, or any capital gains tax to pay, on equity & bond investments for UK non-residents.

 

See https://www.gov.uk/government/publications/non-residents-and-investment-income-hs300-self-assessment-helpsheet/hs300-non-residents-and-investment-income-2015

 

"With the exception of income from property in the UK and investment income connected to a trade in the UK through a permanent establishment, the tax charge for non-residents on investment income arising in the UK is restricted to the amount of tax, if any, deducted at source."

[simoh1490]

8 minutes ago, Oxx said:

 

Please don't question me when you are clearly totally ignorant about the subject.  Those links are for UK residents, not non-residents.

 

There is no further income tax to pay, or any capital gains tax to pay, on equity & bond investments for UK non-residents.

 

See https://www.gov.uk/government/publications/non-residents-and-investment-income-hs300-self-assessment-helpsheet/hs300-non-residents-and-investment-income-2015

 

"With the exception of income from property in the UK and investment income connected to a trade in the UK through a permanent establishment, the tax charge for non-residents on investment income arising in the UK is restricted to the amount of tax, if any, deducted at source."

I can't recall how it works exactly, perhaps you know, but profit from Accumulation units of funds would normally attract capital gains upon sale, assuming thresholds exceeded etc, this for residents. But for non-residents, the capital gains equivalent is converted to income tax which is then subject to the PA limits. Fletchsmile did explain it to me and I have his PM somewhere but I thought that aspect might be worth mentioning. You I think thus far have dwelled on the tax witheld at source whereas with traded funds, EFT's OIECS etc there is no tax at source.

[suzannegoh]

Read the last sentence again.

In his last sentence he recommends that people who don't want to take the time to research individual stocks buy index funds instead. That is hardly libelous, that's common advice.

 

 

 

[simoh1490]

People like to talk about trackers beating managed funds the greater percentage of the time (more than 51% of the time). What they fail to understand however is that trackers, by their very nature, don't often beat the index and if they do, not by very much. Managed funds however, when they do beat the index they tend to beat it by a substantial margin. My jury is out whether trackers do actually beat the index more times than managed funds but that's an aside. 

[suzannegoh]

People like to talk about trackers beating managed funds the greater percentage of the time (more than 51% of the time). What they fail to understand however is that trackers, by their very nature, don't often beat the index and if they do, not by very much. Managed funds however, when they do beat the index they tend to beat it by a substantial margin. My jury is out whether trackers do actually beat the index more times than managed funds but that's an aside. 

 

By the same token, when managed funds fail to beat the indices they often fail to do so by a substantial margin. And as far as your last sentence goes, there is no need to research that because what you are calling trackers are designed to match the performance of its respective index less expenses, not to beat the index.

 

[simoh1490]

1 minute ago, suzannegoh said:

 

By the same token, when managed funds fail to beat the indices they often fail to do so by a substantial margin.

 

Indeed that's possible. The point I was making, however, is that tracker funds can be very limiting, by buying them you are committing to a profit no greater than the growth of the index. And with a managed fund that is diverse, there is at least an opportunity for the fund manager to get out of a non-performing asset type and into other types, mixed assets funds spring to mind or perhaps global equities - with a tracker there's no such option and there's no options but to take the ride.

[scubascuba3]

I can't recall how it works exactly, perhaps you know, but profit from Accumulation units of funds would normally attract capital gains upon sale, assuming thresholds exceeded etc, this for residents. But for non-residents, the capital gains equivalent is converted to income tax which is then subject to the PA limits. Fletchsmile did explain it to me and I have his PM somewhere but I thought that aspect might be worth mentioning. You I think thus far have dwelled on the tax witheld at source whereas with traded funds, EFT's OIECS etc there is no tax at source.

That doesn't sound right. Acc units are the same as Inc units for Income and CGT purposes. If there is equalisation that needs to be factored in.

[simoh1490]

1 minute ago, scubascuba3 said:

 

 

That doesn't sound right. Acc units are the same as Inc units for Income and CGT purposes. If there is equalisation that needs to be factored in.

 

As said, I can't recall the mechanics of it all, bottom line is there is no effective CG if non-resident.

[Rimmer]

A baiting post and a post with messed up quote has been removed

[lkn]

3 hours ago, simoh1490 said:

Indeed that's possible. The point I was making, however, is that tracker funds can be very limiting, by buying them you are committing to a profit no greater than the growth of the index. And with a managed fund that is diverse, there is at least an opportunity for the fund manager to get out of a non-performing asset type and into other types, mixed assets funds spring to mind or perhaps global equities - with a tracker there's no such option and there's no options but to take the ride.

Standard & Poor’s looked at funds and indexes over a 15 year period¹ and it’s surprisingly few that outperform the market, like 1 in 20.

 

Warren Buffet did a bet about whether S&P 500 would outperform a basket of four hedge funds; he won (by a large margin) and is willing to repeat the bet.

 

The S&P 500 annualized return over the last 90 years is 9.8%, a pretty good return, I would not increase the risk for a 1 in 20 chance of beating that when the other 19 out of 20 perform worse.

 

¹ https://us.spindices.com/documents/spiva/spiva-us-year-end-2016.pdf

 

[Oxx]

6 minutes ago, lkn said:

 https://us.spindices.com/documents/spiva/spiva-us-year-end-2016.pdf

 

SPIVA has an interest in promoting index-linked investments because those investments buy the right to use S&P indices.  It's in no way impartial.

 

The so-called "research" relates solely to US markets.  For reasons that I won't go into here, it's much harder for fund managers managing funds invested in the US to outperform their benchmarks (though it is possible).

 

Any attempt to extend conclusions from this narrow "research" to other markets is quite frankly ludicrous.

 

Similarly, comparing hedge funds with their ridiculously high fees and "black box" approach with proper investments is also ludicrous.

 

 

[suzannegoh]

23 minutes ago, Oxx said:

 

SPIVA has an interest in promoting index-linked investments because those investments buy the right to use S&P indices.  It's in no way impartial.

 

The so-called "research" relates solely to US markets.  For reasons that I won't go into here, it's much harder for fund managers managing funds invested in the US to outperform their benchmarks (though it is possible).

 

Any attempt to extend conclusions from this narrow "research" to other markets is quite frankly ludicrous.

 

Similarly, comparing hedge funds with their ridiculously high fees and "black box" approach with proper investments is also ludicrous.

 

 

Aside from performance, one of the advantages of index funds is that it reduces the urge of small investors to try to time the market.  They tend to promote a longterm “buy & hold” mindset.  As an example of why that’s a good thing, during the 80’s one of the most popular and widely held mutual funds in the US was the Fidelity Magellan Fund.  From 1977 to 1990 it returned an average of 29% per year.  And yet according to a study by Fidelity, more investors lost money on that Fund during that timeframe than those who made money.  The reason was because people tended to jump in and out of the fund at inopportune times.
http://www.innovativewealth.com/wall-street-wisdom/individual-investors-bad-investing

[catman20]

20 hours ago, Farangdanny said:

Catman, do you always make false statements without knowing the truth ? You might get sued.  The fund I mentioned is run by private investors for the benefit of private investors. NO monthly fees, or salaried managers. 

the statement i made about MY dealings were NOT FALSE 

[12DrinkMore]

16 hours ago, Oxx said:

 

Please don't question me when you are clearly totally ignorant about the subject.  Those links are for UK residents, not non-residents.

 

There is no further income tax to pay, or any capital gains tax to pay, on equity & bond investments for UK non-residents.

 

See https://www.gov.uk/government/publications/non-residents-and-investment-income-hs300-self-assessment-helpsheet/hs300-non-residents-and-investment-income-2015

 

"With the exception of income from property in the UK and investment income connected to a trade in the UK through a permanent establishment, the tax charge for non-residents on investment income arising in the UK is restricted to the amount of tax, if any, deducted at source."

 

OK, so how do you interpret this statement from the UK gov? (Which follows immediately after the quote you made)

 

Quote

If the tax charge is limited in this way, personal allowances will not be given against other income.

 

I read this to mean that if you go down the tax free route for investments, then they will not allow you to claim a personal allowance against other UK derived income, such as pensions.

 

Indeed you are offered the choice of either claiming non-residency or being assessed as a resident.

 

Quote

In some circumstances, you will be better off paying tax as if you were resident in the UK.

 

[Crash999]

On 1/3/2018 at 2:42 PM, seancbk said:

 

I totally get it.   However, the OP is hardly old, he's only 57.    As I said no need to put a lot of money into it and no need to do it immediately.   Instead he could start doing some research, learning about the differences between rubbish projects and genuinely good projects that will dramatically change industries and business in a few years.   I wouldn't recommend someone with no knowledge just throw money at crypto expecting to get rich. 

However there are some great projects and people will make very nice profits by investing in them.    Lots of resources online to learn about it.


 

I meant older as in it looks like he won't be working again, so he very much depends on maintaining his nest egg. The theory is that younger people don't rely on the income and can absorb more volatility as they're still generating income and savings and could choose to work longer if necessary.

 

Any particular projects you recommend? I checked out a couple including one in my industry that was getting some press but unfortunately it turned to to be nothing more than snake oil. Lots of buzzwords about combining the Internet of things with digitisation and the blockchain but no actual product.

[Crash999]

On 1/3/2018 at 11:48 PM, Acemaker said:

 

On 1/3/2018 at 11:48 PM, Acemaker said:

Thats total Tosh , it sounds like you havent done any meaningful research on the current Crypto market, just listening to losers in late night Bars who mock anybody whois clever enough to make money on Cryptos, Penny Stocks lol, what an ill informed person you are.

I've done a fair amount of research actually, and would buy in if I saw anything that looked promising and had any sort of substance. I've also got two friends who made huge sums getting in Bitcoin early- one cashed out a while ago and another seems to be cashing out now. So I don't look down on anyone who has made money on cryptos. Far from it, good for them. 

 

But getting in *now* is a different story. It's gambling- and poor advice for someone who is older and needs a secure investment. 

Edited January 5, 2018 by Crash999

[speedtripler]

23 minutes ago, Crash999 said:

I've done a fair amount of research actually, and would buy in if I saw anything that looked promising and had any sort of substance. I've also got two friends who made huge sums getting in Bitcoin early- one cashed out a while ago and another seems to be cashing out now. So I don't look down on anyone who has made money on cryptos. Far from it, good for them. 

 

But getting in *now* is a different story. It's gambling- and poor advice for someone who is older and needs a secure investment. 

You are not supposed to invest 100% of your money in anything 

But a small % in crypto will likely outperform the rest of your investments combined

I've been buying bitcoins since 2011 and I'm more bullish today than I ever was in the last 7 years... 

Wait till the etfs launch..... First half of 2018

[seancbk]

1 hour ago, Crash999 said:

Any particular projects you recommend? I checked out a couple including one in my industry that was getting some press but unfortunately it turned to to be nothing more than snake oil. Lots of buzzwords about combining the Internet of things with digitisation and the blockchain but no actual product.

 

 

I don't really like recommending anything as I think people should do their own research and take their own risks. 

For research I recommend coinmarketcap.com  as a first step.

Find the projects various community channels - Slack, Discord, Twitter, Telegram, Facebook etc and join the communities to get a feel for how much communication there is.

Check out their GitHub to see how much activity is on there.

Do lots of Google searching for news about the project 

Join Bitcointalk.org and find the sub forum for the coin you are interested in.


Investing into crypto isn't difficult, but there are lots of steps and it does take to time to become familiar with all of it.   
 

 

 

[jadee]

On 1/3/2018 at 2:13 PM, Crash999 said:

With the $200k buy some ETFs linked to indexes. Very low fees and you should clear another 20k Baht per month keeping the investment secure. 

Hi, could you explain more about how to do this. I'm from the UK and live in Thailand, which bank offers ETFs with the lowest fees? I have an account with Bangkok Bank and from their homepage I went to Personal Banking, Mutual Funds and Exchange-Traded Funds - is that the kind of product you are referring to? Do I just contact the bank and say I want to 'buy some'? 

Under notes it does say: 

• Investments are not deposits and carry the risk that investors may not receive their money back in full when the investment is redeemed (the principal is not guaranteed)

Thanks for any advice you can give. 

[Oxx]

8 hours ago, jadee said:

Hi, could you explain more about how to do this. I'm from the UK and live in Thailand, which bank offers ETFs with the lowest fees? I have an account with Bangkok Bank and from their homepage I went to Personal Banking, Mutual Funds and Exchange-Traded Funds - is that the kind of product you are referring to? Do I just contact the bank and say I want to 'buy some'? 

Under notes it does say: 

• Investments are not deposits and carry the risk that investors may not receive their money back in full when the investment is redeemed (the principal is not guaranteed)

Thanks for any advice you can give. 

 

Technically, it's not the bank that's offering funds, it's a related group company, so first you need to open an account with that company.  Instructions on how to do this are at http://www.bangkokbank.com/OnlineBanking/BusinessBanking/SMEs/BualuangiFund/Howtoapply/Pages/default.aspx

 

Once that's done, you can place purchase orders online or at a branch.

[greenchair]

On 1/3/2018 at 3:01 PM, seancbk said:

 

Congratulations on having an opinion based entirely on ignorance.

Considering the Bank of England is studying launching it own crypto currency and thousands of banks and major international companies are actively engaged in using them I'd say you are way behind with your blinkered opinions.

http://www.telegraph.co.uk/news/2017/12/30/bank-england-plots-bitcoin-style-digital-currency/

I won't bother finding you anymore links to make my point, because I suspect you'd be trying to destory weaving machines if you lived in 1788 when the original luddites were about.

 

I have no idea what you are talking about. But it does seem 500 to 1000 from his 160000 would not be a big loss if it didn't work out and would have a great gain if it did. 

I might do that myself. 

[speedtripler]

27 minutes ago, greenchair said:

I have no idea what you are talking about. But it does seem 500 to 1000 from his 160000 would not be a big loss if it didn't work out and would have a great gain if it did. 

I might do that myself. 

Exactly, they're is a lot more upside than downside in CryptoCurrencys

Even mark cuban who said bitcoin was a scam for years finally bought some a couple of months ago because he is smart enough to realise it's here to stay