Living Off Your Investments ...

[ArranP]

financial situation: income 100% / expenses 26% / average yield ex cash 9.638% p.a.

holdings:

Lottomatica pp EUR....................... XS0254095663

PBA17 EUR................................... XS0234088994

Ineos16 EUR................................. XS0242945367

NordicTel15 EUR............................ XS0252438899

TuranAlem11 EUR.......................... XS0269267000

TROY CAP11 EUR.......................... XS0263392358

Nurbank11................................... XS0269698246

Petrol 11 EUR............................... XS0271812447

Sibacadem 11 EUR........................ XS0274663383

Hi Dr Naam, is there a particular website you use/recommend to buy/sell/track these bonds via ? I interested to take the time to know more about bond investing.

Thanks in advance.

Regards

Arran.

[churchill]

heres my financial situation I am planning to come thailand with:

Long term capital growth angle:

------------------------------------

Do not sell up! I will keep 9 properties in UK, market value approx £1,000,000, this will continue to rise with UK property market at approx 7-8% a year over the long term.

After 5 years in non-UK-tax-resident status UK properties are no longer liable for UK capital gains tax when sold, so can sell when-ever and take the full gain.

Monthly Income angle from rent:

--------------------------------------

On the properties amount owed to the banks is approx £500,000, yearly bank interest (@ 5.49% base tracker) is £27,450.

Rental return is £51,600 less bank interest £27,450 is profit/income £24,150.

After UK tax (approx £4,000) leaves £20,150, monthly this is £1,679 (approx 117,000 baht).

Minimize Tax Saving angle:

--------------------------------

Reduce UK tax by increasing UK borrowing to reduce UK profit/income made.

Increase UK borrowing to £850,000, yearly bank interest is now (@5.49% base tracer) £ 46,665.

Rental reutrn £51,600 less bank interest £46,665 is profit/income £4,935, this is below UK tax allowance of £5,035, so no tax to pay!!

The additional capital raised from increasing UK borrowing £350,000 move into an off-shore high interest savings account (@5.00% base tracker), makes £17,500.

There is no tax to pay as it is off-shore and you/I am now non-uk-tax-resident.

So the return on the savings account £17,500 + UK profit/income £4,935 is £22,435, monthly £1,869 (approx 130,000 baht)

I will rent in thailand as this gives flexibility to move around, over the years the rent in thailand will go up but so will the rent I charge on my properties in the UK. Maybe later in years I will cash in and sell the properties in the UK but not for a long time yet.

My thinking is that I covered most of the angles I can in providing myself a financial income whilst in Thailand, with still the possibility to return to the UK to live if need be wihtout having to return to work.

If I were you I would sell a couple of properties now and invest in property in Thailand - You would then be spreading your property investments and at a good exchange rate - Rental yields in certain ares are similar to the UK and property appreciation may well be greater .

Also you should consider exchange rates - IMO The baht will appreciate along with other Asian currencies - The best hedge - again IMO is a gold or gold company shares .

[BlackJack]

1 stop paying rent

2 invest in property 1 to live in 1 to rent out

3 have some cash in the bank - interest could be up to 7% (see NZ)

4 have some cash in 3 to 6 month deposits (up to 20% office rental funds)

5 have some cash in longer 12 month deposits (some Aussie funds paid 100% as of June 2006)

6 load your retirment fund if you can

7 go to casino and put all on 8 black (100% for sure)

8 bet a long shot NANO share

9 give it to the girlfriend to invest in Isaan

10 eat drink and be merry and dont ever forget why you came here

Edited November 23, 2006 by BlackJack

[BlackJack]

Despite the NZ dollar strengthening against most of its major trading partner currencies over the month, International Equity (Global) funds gained 1.4% on average in October, with one year performances remaining strong at 20.6%. Keeping the theme, International Equity (Regional) funds gained 1.7% on average in October, bringing one year performances to 30.2%.

NOT bad eh?

[Naam]

Hi Dr Naam, is there a particular website you use/recommend to buy/sell/track these bonds via ? I interested to take the time to know more about bond investing.

*****

i am not trading on the net but with my bank by phone or e-mail. actually i have reduced my trading to an absolute minimum nowadays but just reinvest what i don't spend.

a excellent website to track all kinds of assets using the code numbers is:

http://quotes.ubs.com/quotes/

i forgot to add one caveat. UBS does not state [most of the times] the correct minimum tradeable batch of individual bonds. most of the ones i hold are minimum 100k (USD) and 50k (€UR).

Edited November 24, 2006 by Dr. Naam

[ArranP]

http://quotes.ubs.com/quotes/

i forgot to add one caveat. UBS does not state [most of the times] the correct minimum tradeable batch of individual bonds. most of the ones i hold are minimum 100k (USD) and 50k (€UR).

Thanks, I have a few more questions if I may:

i is/can the profit be received annually or monthly ?

ii is tax payable on the profit, can the trading be done off-shore to avoid tax ?

iii. are there commissions / trading expenses to pay, if so what is a should one be paying to trade?

Thanks in advance for your replies, very much appreicated.

Regards

Arran.

[BlackJack]

I was telling people about investments in NZ last year

so heres the rub

NZ Property had the strongest gains for the December month with the sector averaging 5.4%, followed by the NZ Equity fund sector. NZ Equity Active, NZ Equity Passive, and NZ Equity Australasian averaged 3.0%, 5.3% and 2.2% respectively, thus bringing annual returns after tax and fees to 20.7%, 23.7% and 17.8% respectively.

Investors in Diversified funds have seen average returns of 11.0% (Growth), 8.8% (Balanced), and 5.8% (Defensive) after tax and fees over the year. However, not all domestic asset sectors saw positive December returns. NZ Fixed Interest recorded negative 0.1% for the month, but the sector averaged a positive 2.9% over the year.