How to invest £160k

[steven100]

When you come to retire just buy 2 or 3 beer bars in Nana.   No hassles, no stress, just collect the $$$ every week.

[suzannegoh]

Reasons for investing in gold bars:



Firstly, The benefits of a Goldmoney holding include the assurance of knowing that gold, silver and platinum group metals are held in secure and insured vaults, fully identified as owned by individual Goldmoney clients. This form of direct individual ownership is superior to owning a share (or shares) of a corporate entity or trust, such as listed ETFs or other collective vehicles, for several reasons. First, a holding in a metal ETF is a form of indirect rather than direct legal ownership, as it is the intermediary, rather than individual, that owns the metal. 

Second, physical ETFs are designed so that their shares closely track the price of physical gold. For this service, they charge annual management fees of approximately 0.4-0.6% per annum. This is three to four times greater than the annual all-in fee paid by Goldmoney clients for the secure storage, bar testing, insurance, and audits of their gold as well as the full suite of additional features and services provided by Goldmoney. The higher fees associated with the ETFs are due in part to their requirements to comply with securities laws, including associated regulatory filings. These costs are higher than those incurred by Goldmoney in meeting its regulatory obligations. 

Third, some ETF prospectuses point to possible risks, such as that redemptions may be suspended temporarily or indefinitely at the discretion of the management company, and that custodians may be free to appoint sub-custodians, whose performance cannot be guaranteed. 

Finally, investors should also be aware that some ETFs do not own all physical metal directly, but gain their exposure to gold and silver prices in whole or part through futures, options, swaps, leases or other derivatives, which have some combination of exchange, issuer and counterparty risk. These risks can be difficult to quantify, in particular in the event of a financial crisis.

Same question as for the guy recommending cryptos: if you were managing the OP's portfolio, what percent of his 160K pounds would you put in gold?

[Nemises]

 

Same question as for the guy recommending cryptos: if you were managing the OP's portfolio, what percent of his 160K pounds would you put in gold?

 

If he wants to hide money in order to obtain/maintain pension...then the answer is every penny above his pension threshold.

 

If he doesn’t want to hide money... then I dare say he would have no interest whatsoever in buying offshore gold.

 

[suzannegoh]

 If he wants to hide money in order to obtain/maintain pension...then the answer is every penny above his pension threshold.
 
If he doesn’t want to hide money... then I dare say he would have no interest whatsoever in buying offshore gold.
 

I must have misinterpreted the original post, I thought that he wanted the 160K to produce an income stream. There are lots of ways to hide money if you don't care about earning a return.

[Nemises]

I must have misinterpreted the original post, I thought that he wanted the 160K to produce an income stream. There are lots of ways to hide money if you don't care about earning a return.

Offshore gold bars do not increase in value?

[suzannegoh]

 Offshore gold bars do not increase in value?

 

 There have been periods of time in which they have. If you are recommending gold for 10 or 20 percent if his portfolio that's one thing, but I'd disagree completely with putting 100% of a 57 year old's investable money in gold.

 

 

 

 

 

[ExpatOilWorker]

On 1/6/2018 at 11:42 PM, greenchair said:

Sorry but what does crypto currency mean ??

Something that falls 9% in a blink of an eye:

 

https://www.cnbc.com/2018/01/10/south-korea-official-reportedly-readying-bill-to-ban-all-cryptocurrency-trading.html

[suzannegoh]

FWIW, I’m also 57 years old and retired in Thailand.  My portfolio is larger than the OP’s (which makes diversification easier) but my expenses are also much higher than his.  This is how I am presently allocated:
27% - US Inflation Protected Treasuries (TIPS)
 5% - Metals & Miners (Gold & Silver)
33% - Stocks, ETFs & Mutual Funds
25% - Real Estate
10% - Cash
 

Edited January 11, 2018 by suzannegoh

[HauptmannUK]

I'm the OP on this thread from a couple of months ago. Many thanks for all the replies - they prompted lots of further research.

I have now accepted early retirement from September - so just handing over my various projects (a lot of them in China, Thailand,  India etc).

 

Seems like my pension will be a little better than I thought.  About 100kTHB/month, indexed to UK CP inflation.  I will also have income from my UK apartment rental - which I hope to save to build a fund for repairs to the property. Surplus can be used for holidays.  As a teetotal non-smoking couple with no expensive hobbies 100k/mo. will afford my wife and I a pretty decent lifestyle I think. I have a separate chunk of cash set aside to buy a new car and fortunately my wife has a few million THB of her own to 'invest'  (there'll be a separate post about that!). I intend to spend a few months in UK each year and remain UK 'resident' for tax.

My main concerns are really Brexit-related:

1. Likely further drop in GBP following Brexit (I essentially work for a branch of UK gov. in international trade, so I am witnessing first-hand the meltdown of several areas of gov. and lack of strategy, plus experienced staff such as myself are bailing in droves before the Tsunami hits)

2. UK inflation eating into my capital (although my monthly pension is largely protected).

 

So I am looking at tracker funds, metals, cash savings accounts. Already have UK property. 

Question - are there UK equivalents to US TIPS inflation protected bonds? I can't find anything similar from my own research.

[scubascuba3]

I'm the OP on this thread from a couple of months ago. Many thanks for all the replies - they prompted lots of further research.
I have now accepted early retirement from September - so just handing over my various projects (a lot of them in China, Thailand,  India etc).
 
Seems like my pension will be a little better than I thought.  About 100kTHB/month, indexed to UK CP inflation.  I will also have income from my UK apartment rental - which I hope to save to build a fund for repairs to the property. Surplus can be used for holidays.  As a teetotal non-smoking couple with no expensive hobbies 100k/mo. will afford my wife and I a pretty decent lifestyle I think. I have a separate chunk of cash set aside to buy a new car and fortunately my wife has a few million THB of her own to 'invest'  (there'll be a separate post about that!). I intend to spend a few months in UK each year and remain UK 'resident' for tax.
My main concerns are really Brexit-related:
1. Likely further drop in GBP following Brexit (I essentially work for a branch of UK gov. in international trade, so I am witnessing first-hand the meltdown of several areas of gov. and lack of strategy, plus experienced staff such as myself are bailing in droves before the Tsunami hits)
2. UK inflation eating into my capital (although my monthly pension is largely protected).
 
So I am looking at tracker funds, metals, cash savings accounts. Already have UK property. 
Question - are there UK equivalents to US TIPS inflation protected bonds? I can't find anything similar from my own research.

I think you'll need a hobbie/s.

1) I'm gambling on GBP recovering after brexit, you'll get mixed views on that.

2) if GBP weakens further yes inflation will increase

[HauptmannUK]

40 minutes ago, scubascuba3 said:

 

 

I think you'll need a hobbie/s.

1) I'm gambling on GBP recovering after brexit, you'll get mixed views on that.

2) if GBP weakens further yes inflation will increase

 

Yes, you are correct about hobbies. I have a couple and they are not too expensive.

 

I don't want this to turn into a Brexit thread. All I will say is that I work for a branch of government involved in international trade in the technology sector.

In my 32 years of work in this area I don't think I have ever experienced such poor management and total lack of strategy than in the last year. The public are not aware of the true picture.

Over the last two years the government has lost many of the small number of experienced trade experts it did have (via VS schemes designed to cut the civil service pay bill) and they have been replaced by smartly-dressed youngsters who parrot the Brexit  phrasebook.

I had to trail around India in May's footsteps last year. It was an unmitigated disaster.  GREAT HK was held last week with Liam Fox present - there was nobody there to hear him.

I see nothing at all to suggest GBP will rise post-Brexit (by that I mean post-transition, because in 'transition' we are still defacto EU).

Anyway, I shall be so glad to leave all the nonsense, lies and BS behind. The last year in particular has been almost intolerable.

I hope to view events in the UK from afar. The situation in the UK about five years from now, when the magnitude of the deception becomes fully apparent, will be interesting to witness. I think we may see a profound political upheaval.

Edited March 26, 2018 by HauptmannUK

[Oxx]

55 minutes ago, HauptmannUK said:

Question - are there UK equivalents to US TIPS inflation protected bonds?

 

Yes, there are.  They're known as "index linked Gilts".

 

One easy way to hold them is though an iShares ETF

 

https://www.ishares.com/uk/intermediaries/en/products/251717/ishares-indexlinked-gilts-ucits-etf

 

There is a case to be made that this ETF is overly heavy in long term bonds, and some people prefer using a fund such as 

 

http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F0GBR06I63

 

[suzannegoh]

 
Yes, there are.  They're known as "index linked Gilts".
 
One easy way to hold them is though an iShares ETF
 
https://www.ishares.com/uk/intermediaries/en/products/251717/ishares-indexlinked-gilts-ucits-etf
 
There is a case to be made that this ETF is overly heavy in long term bonds, and some people prefer using a fund such as 
 
http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F0GBR06I63
 

Are the Brits any more honest than the Americans in terms of how they calculate the inflation rate?

[JOC]

You are going to spend the majority of your time in Thailand....

Bring the money here and invest here.....will make you immune to currency fluctuations.

Buy JASIF (local infrastructure fund) Google it.

160k GBP is around 7 million baht.......JASIF was traded today at 11.70........So your money will buy you approx 600.000 units

On an average JASIF returns 0.23 every 3 months (paid quarterly) so 600.000 x 0.23 =138.800 baht into your bank account every 3 months...tax free!!

JASIF is traded on the stock-exchange (SET).....So no management fee only the usual trading fee.....Is very liquid , so easy to access your money if needed....3 banking days.

Why make life more complicated?

 

[HauptmannUK]

15 hours ago, JOC said:

You are going to spend the majority of your time in Thailand....

Bring the money here and invest here.....will make you immune to currency fluctuations.

Buy JASIF (local infrastructure fund) Google it.

160k GBP is around 7 million baht.......JASIF was traded today at 11.70........So your money will buy you approx 600.000 units

On an average JASIF returns 0.23 every 3 months (paid quarterly) so 600.000 x 0.23 =138.800 baht into your bank account every 3 months...tax free!!

JASIF is traded on the stock-exchange (SET).....So no management fee only the usual trading fee.....Is very liquid , so easy to access your money if needed....3 banking days.

Why make life more complicated?

 

I am aware of JASIF and what they do. To put all my money on JASIF would be pretty stupid.

[Oxx]

18 hours ago, JOC said:

JASIF returns ... 138.800 baht into your bank account every 3 months...tax free!!

 

You are clearly unaware that there is a 10% withholding tax on all equity dividend income.

 

See https://www.set.or.th/en/regulations/tax/tax_p1.html

 

Do you really think you're fit to give others advice?

[GarryP]

4 minutes ago, Oxx said:

 

You are clearly unaware that there is a 10% withholding tax on all equity dividend income.

 

See https://www.set.or.th/en/regulations/tax/tax_p1.html

 

Do you really think you're fit to give others advice?

Surely, according to the link you posted, that is not applicable to nationals of countries with double tax treaties with Thailand?

[Oxx]

12 minutes ago, GarryP said:

Surely, according to the link you posted, that is not applicable to nationals of countries with double tax treaties with Thailand?

You're wrong.  Just read the link carefully.

[GarryP]

11 minutes ago, Oxx said:

You're wrong.  Just read the link carefully.

Got you, exempt from capital gains only, but subject to tax on dividends and interest. 

[RIC23]

I have already posted on here about investing, just to say again I run a business here in Phuket & if you would like to talk about an investment option message me to just talk.

Short term investment or long term, I think I could offer better than 138,000 every 3 months.

[Oxx]

2 minutes ago, RIC23 said:

Short term investment or long term, I think I could offer better than 138,000 every 3 months.

 

138,800/quarter, that's a 7.9% yield.  If you're offering better than that it's either a scam or very high risk.

[JOC]

7 hours ago, Oxx said:

 

You are clearly unaware that there is a 10% withholding tax on all equity dividend income.

 

See https://www.set.or.th/en/regulations/tax/tax_p1.html

 

Do you really think you're fit to give others advice?

Unlike you, I actually know, what I am talking about....

Been trading on SET for more than 15 years....

I have JASIF and had them since their IPO...meaning that I have received dividend payments 12 times....All without withholding of any tax...!

Why?

Because dividends from Infrastructure Funds are tax exempt for the first 10 years......

Clearly more fit to give advice than you are.......Looking forward to your reply...

 

https://www.mazars.co.th/Home/Doing-Business-in-Thailand/Tax/Tax-Incentives-for-Infrastructure-Funds

[RIC23]

Oxx, I appreciate what your saying, but as I said earlier, I am running a legitimate business financially sound & definitely NOT running a scam.

Farangs cannot get finance easily here in Thailand without jumping through hoops.

I am looking for a small investment to help build my company & am prepared to offer a good % rate to secure it & not a HIGH risk proposition

 

  

[Crash999]

22 minutes ago, RIC23 said:

Oxx, I appreciate what your saying, but as I said earlier, I am running a legitimate business financially sound & definitely NOT running a scam.

Farangs cannot get finance easily here in Thailand without jumping through hoops.

I am looking for a small investment to help build my company & am prepared to offer a good % rate to secure it & not a HIGH risk proposition

 

  

If no collateral then it’s very high risk. 

 

If you don’t repay then there’s nothing that the borrower can do as the police see it as a business dispute. Only option is a civil case which can take years in court and may not succeed anyway. 

[RAZZELL]

Where's all the crypto millionaires gone on this thread?

 

Maybe they've done their <deleted> after Ripple and ADA have dropped by about 80%?

 

RAZZ

[RIC23]

CRASH999, I didn't say there wasn't collateral I just didn't say what it was here

There is very good collateral to cover the investor, but I am running a good business here & don't wish to telegraph to my opposition what I am doing

I would divulge that only to a positive investor in a face to face meeting  

[xylophone]

On 03/01/2018 at 7:08 PM, HauptmannUK said:

I am most concerned to keep the real value of my £160k, since I believe my pension will be enough to live an OK life on

Then keeping pace with or ahead of inflation is your main priority.........so that is a starting point.

 

For example the average UK inflation rate from 1989 to 2018 was 2.58% so if you wanted to take that then your after tax return on an investment should equal or better that.......and remember that these days central banks try to keep a tighter reign on inflation so we shouldn't have exorbitant rates again (??).

 

Now you have a starting point, so research is the key. I have funds invested in AA rated Corp bonds, and Utilities shares which pay around 5.5% pa dividend...........and being a non resident in my home country does mean tax advantages.

 

Research as you have plenty of time.