Innovative Wealth Management Opportunities & Strategies.

MasterOfCoin

Experienced member
1,228 477
As requested in another thread, here:

This is for discussion of ideas and ways to preserve and grow wealth in an increasing volatile financial environment.

There are now a myriad, almost bewildering, array of innovative financial opportunities on offer for savvy investors.
Here, we can extol on the virtues or otherwise of those most suited to traders or investors.

Contribute your thoughts and any experiences or analysis.

:unsure: .
 
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1nvest

Well-known member
283 102
  • Thanks @MasterOfCoin for setting this up
  • My first contribution to this thread will be where to just store your money. And i use my own personal experience as an example. As with Timsk, i sold an investment property recently. It was earning me 20k per annum, however the ROI of 20k per annum was a fraction of the value of the property. it was a waste of money basically just renting it out. I could have made a lot more with good investments. Yes of course i made money from the increase in its value, but you are left with a whopping CGT tax bill depending on how long you've had it, and how long you've been renting it out. As time goes on, its a diminishing return
  • I wont talk about the capital gains, however when i did see the return i hatched out a plan of where to just "keep" the money
  • The first is the SIPP. Self Invested Pension Plan. For every contribution you put into a SIPP, Her Majesty also contributes at least 20% (up to 40% depending on whether you are a higher earner, 45% if you earn over 150k)
  • There are limits within each tax year you can contribute, but its worth taking full advantage of these. Also i use HMRC, as the SIPP is a UK term...I'll post a few more just about the SIPP and how best to use any tax free means available before even making an investment
 
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1nvest

Well-known member
283 102
Continuing on the SIPP.
  • How much HMRC gives you (in addition to what you contribute), depends on how much you earn. Theoretically, each tax year, you can contribute up to a maximum of your current annual salary (however this is capped at £40,000). So if you earn £50,000 you can contribute £40,000 into a SIPP and HMRC will contributed an additional 40%.
  • HMRC give you 40% to contribute into your SIPP. For every £20,000 contributed into a SIPP, it will cost you just £12000. HMRC will give you £8000
  • HMRC are also a little more generous here in that if you haven't contributed the full maximum in the last 3 years into your SIPP (providing you have had a SIPP for 3 years), you can use the previous 3 years and use those unused annual allowances.
  • HMRC will contribute 40% to your wealth each year and you've not had to even make an investment yet. (The irony is not lost in that they've probably taken it from the sale of your investment property via CGT, but you can reduce this quite substantially)
  • If you are a basic rate tax earner, you get relief of up to 20% of your contribution. same rules apply above.
  • If you earn over £240,000 per annum, different rules apply. Im sounding like an advert...apologies. I used to work (consult) for HMRC
 
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1nvest

Well-known member
283 102
Lastly on this topic. Since the cap is £40k which is hardly wealth, i have a few years before i can put all of the proceeds of the sale of the property. Over the course of the years i will be moving 40k into the SIPP and whereby before I was getting rental income, i now receive and will be for some years tax rebates which are almost the same i was getting from the rental of the property. Tax free from HMRC
In the mean time, i max out mine and my wifes and my childs' ISAs and the rest into various general trading accounts
 
 
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