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Savings and Investments thread

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  • Baillie Gifford have taken their profits on Tesla and sold around half of their holdings. Wonder if that has anything to do with a certain individual's twitter habits or $1.5 billion of bitcoin...
  • felix_31 said:
    Baillie Gifford have taken their profits on Tesla and sold around half of their holdings. Wonder if that has anything to do with a certain individual's twitter habits or $1.5 billion of bitcoin...
    Probably more to do with the fact tesla doesnt actually make any money (except on their bitcoin holdings). 
  • An article on Bloomberg is a bit concerning (my emphasis in bold) ....

    "Last week Bloomberg reported that junk bond yields in the US fell below 4% the lowest level ever recorded and down from 11.5% peak yield in March last year. This is the opposite direction to the yield on the “risk free rate” of US 10y bond (hitting 1.18% last week) which has been steadily rising over the last 6 months. These contrasting trends in fixed income suggest that debt investors are beginning to fear wealth erosion from inflation in “risk free” assets more than default risk from highly leveraged companies.

    Junk bonds have benefitted from a rising oil price $58 per barrel (WTI), up 66% since the start of November. Many US energy (including shale gas) companies used the junk bond market to finance their operations.

    Companies are responding to the rising junk bond market by issuing more junk debt, year-to-date US volume stands at about $60 billion, which is a record amount. In the UK, Mohsin and Zuber Issa’s deal (backed by TDR Capital, a Private Equity firm) to buy Asda from Wal-Mart for £6.5bn will be funded by the junk bond market and sale and leaseback deals. Wal-Mart has always struck me as a well-run company with a strong management team, Jeff Bezos lured many employees from the retailer, such as Rick Dalzell, to manage Amazon. So it’s not clear what expertise the Issas and TDR bring to the business that Wal-Mart doesn’t have, other than a talent for financial structures."

    There's a piece in the FT this week noting that  "It has never been cheaper for companies with a “junk” credit rating to borrow cash in the US, as the voracious appetite from investors for riskier debt sends the interest rates paid on recent bond deals to record lows."  Additionally, I was chatting with an M&A specialist earlier who said there is so much cash out there at the moment that they are all looking for deals/value in the market.   
  • I know negative interest rates were touched on here a little while ago.  Did an update with a client and our liquidity specialist this morning. As a bank, we're still working with the BoE to confirm that we can action negative rates, if they decide to implement those. However, the view now is that that will not happen this year and it has been priced out of the market. The reason for interest rates being so low at the banks and money markets (which did go negative in December for some terms) is the surplus liquidity that all the banks and their clients have. There seems little change expected there in the short term.    
  • Does anyone have an employee pension which is serviced through L&G, just wondered how you navigate through the various funds. There are a number of employee recommended ones and more besides, before I go down the road of engaging with a financial advisor just wondered if anyone here had any approaches or tips in terms of fund selections 
  • Jon_CAFC_ said:
    Does anyone have an employee pension which is serviced through L&G, just wondered how you navigate through the various funds. There are a number of employee recommended ones and more besides, before I go down the road of engaging with a financial advisor just wondered if anyone here had any approaches or tips in terms of fund selections 
    Do you mean Employer?

    I worked for the L&G for about 5 years back in the late 90’s, was tied to L&G funds only - is that the case with your scheme? Or whole of market?
  • edited February 2021
    Jon_CAFC_ said:
    Does anyone have an employee pension which is serviced through L&G, just wondered how you navigate through the various funds. There are a number of employee recommended ones and more besides, before I go down the road of engaging with a financial advisor just wondered if anyone here had any approaches or tips in terms of fund selections 
    Does your employer offer advice from the firm who set the pension up  ?  I know some do, as the IFA who set up the workplace scheme is probably receiving some ongoing fees & as such is duty bound to give you an annual review - at which you could discuss the funds on offer. 

    Generally employees are given a limited choice of funds & are usually steered towards some form of "lifestyling" or targeting - where you are moved out of equities & into bonds & cash the nearer you get to retirement. 

    Different if you are free to choose from the whole market, but I doubt that is on offer. It is definitely worth your while engaging with a financial adviser - whether led by your employer or one you source yourself  😉
  • Crazy day on the Markets, Kanabo up near on 300% on its 1st day of trading with MPL 117% and with Bitcoin at one stage hitting $50k Argo Blockchain up another incredible 28%. Some serious money being washed around.  Pound also doing very nicely against the Euro.
  • Ugolfaddick said:
    Jon_CAFC_ said:
    Does anyone have an employee pension which is serviced through L&G, just wondered how you navigate through the various funds. There are a number of employee recommended ones and more besides, before I go down the road of engaging with a financial advisor just wondered if anyone here had any approaches or tips in terms of fund selections 
    Does your employer offer advice from the firm who set the pension up  ?  I know some do, as the IFA who set up the workplace scheme is probably receiving some ongoing fees & as such is duty bound to give you an annual review - at which you could discuss the funds on offer. 

    Generally employees are given a limited choice of funds & are usually steered towards some form of "lifestyling" or targeting - where you are moved out of equities & into bonds & cash the nearer you get to retirement. 

    Different if you are free to choose from the whole market, but I doubt that is on offer. It is definitely worth your while engaging with a financial adviser - whether led by your employer or one you source yourself  😉
    Sourcing you say, did I recall you’re an ifa golf? 
  • Jon_CAFC_ said:
    Ugolfaddick said:
    Jon_CAFC_ said:
    Does anyone have an employee pension which is serviced through L&G, just wondered how you navigate through the various funds. There are a number of employee recommended ones and more besides, before I go down the road of engaging with a financial advisor just wondered if anyone here had any approaches or tips in terms of fund selections 
    Does your employer offer advice from the firm who set the pension up  ?  I know some do, as the IFA who set up the workplace scheme is probably receiving some ongoing fees & as such is duty bound to give you an annual review - at which you could discuss the funds on offer. 

    Generally employees are given a limited choice of funds & are usually steered towards some form of "lifestyling" or targeting - where you are moved out of equities & into bonds & cash the nearer you get to retirement. 

    Different if you are free to choose from the whole market, but I doubt that is on offer. It is definitely worth your while engaging with a financial adviser - whether led by your employer or one you source yourself  😉
    Sourcing you say, did I recall you’re an ifa golf? 
    That I am....

    Feel free to DM me. 
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  • Another crazy day on AIM & Markets in general, KNB still flying, MXC about to take off and sleepy old EveSleep going ballistic, common theme being cannabis, looks like cannabis is the medicinal Bitcoin equivalent.  Never thought a few years ago I’d have an investment portfolio of cannabis and non existent coins 😜😜
  • Does anybody know much about SEISS grants?

    A friend is asking if they can defer the declaration of the grants as income for 21/22 accounts, rather than 20/21?

    The person is not intending to do anything "clever", simply had a hobby business hit by the pandemic (beauty/facials/hair/makeup) and has been working as a receptionist at a Healthcare company since no longer able to continue with her business's operations, having been recommended by an in-law who works in recruitment. Her concern is that any more hours now worked will be earning at the 20pc tax rate band and has consequences to childcare tax credits.  It's not my area of expertise and I am not sure about the implications, so am recommending she seeks specialist advice. 
  • Another crazy day on AIM & Markets in general, KNB still flying, MXC about to take off and sleepy old EveSleep going ballistic, common theme being cannabis, looks like cannabis is the medicinal Bitcoin equivalent.  Never thought a few years ago I’d have an investment portfolio of cannabis and non existent coins 😜😜
    From the KNB Company Profile:

    "(Kanabo) is an investment company. The company's main aim is to generate an attractive capital return to its shareholders by achieving a valuation uplift upon RTO and by selecting a target business that has significant further value growth potential following an acquisition."

    Substitute some of that language for 18th century English or French and you have the South Sea Company or the Mississipi Company ...
  • mendonca said:
    Does anybody know much about SEISS grants?

    A friend is asking if they can defer the declaration of the grants as income for 21/22 accounts, rather than 20/21?

    The person is not intending to do anything "clever", simply had a hobby business hit by the pandemic (beauty/facials/hair/makeup) and has been working as a receptionist at a Healthcare company since no longer able to continue with her business's operations, having been recommended by an in-law who works in recruitment. Her concern is that any more hours now worked will be earning at the 20pc tax rate band and has consequences to childcare tax credits.  It's not my area of expertise and I am not sure about the implications, so am recommending she seeks specialist advice. 
    No, don’t believe you can defer and will need to go on her self assessment.

    “The grant does not need to be repaid if you’re eligible, but will be subject to Income Tax and self-employed National Insurance and must be reported on your 2020 to 2021 Self Assessment tax return.”
  • Rob7Lee said:
    mendonca said:
    Does anybody know much about SEISS grants?

    A friend is asking if they can defer the declaration of the grants as income for 21/22 accounts, rather than 20/21?

    The person is not intending to do anything "clever", simply had a hobby business hit by the pandemic (beauty/facials/hair/makeup) and has been working as a receptionist at a Healthcare company since no longer able to continue with her business's operations, having been recommended by an in-law who works in recruitment. Her concern is that any more hours now worked will be earning at the 20pc tax rate band and has consequences to childcare tax credits.  It's not my area of expertise and I am not sure about the implications, so am recommending she seeks specialist advice. 
    No, don’t believe you can defer and will need to go on her self assessment.

    “The grant does not need to be repaid if you’re eligible, but will be subject to Income Tax and self-employed National Insurance and must be reported on your 2020 to 2021 Self Assessment tax return.”
    I agree. If you received "income" during the 20/21 tax year then it needs to be recorded on your SA for that year. Otherwise I'm deferring my income I've earn't this tax year until 2080/81.
  •  :D Thanks for the clarification chaps.That did make me chuckle Golfie!
  • Cable hits 1.40 for first time since April 2018
  • Interesting times on the markets this last few days.

    Any of you experts want to advise why our friends in the city are having a little bit of a "panic" this last few days?

    Investing in any UK fund that invests heavily in the FTSE 100  (still down about 27 % on last year's high) just seems a total waste of time at the moment.

    Even more fun and games over the pond. NASDAQ suffering a really sharp decline and all the tech companies that have seen huge rises recently being sold off sharply. Tesla shares down about 8% at the moment. What are they panicing about?

    All I can say is my BG funds won't be looking so good tonight!
  • My SIPP has taken a bashing after lovely gains, guess like everyone's. Hope the recovery comes back soon.
  • Interesting times on the markets this last few days.

    Any of you experts want to advise why our friends in the city are having a little bit of a "panic" this last few days?

    Investing in any UK fund that invests heavily in the FTSE 100  (still down about 27 % on last year's high) just seems a total waste of time at the moment.

    Even more fun and games over the pond. NASDAQ suffering a really sharp decline and all the tech companies that have seen huge rises recently being sold off sharply. Tesla shares down about 8% at the moment. What are they panicing about?

    All I can say is my BG funds won't be looking so good tonight!
    I'm just a punter, but this is how the FT summarises it:

    US technology stocks fell sharply for the second day in a row on concerns that rising long-term interest rates will derail a historic surge in the share prices of fast-growing companies.
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  • Interesting times on the markets this last few days.

    Any of you experts want to advise why our friends in the city are having a little bit of a "panic" this last few days?

    Investing in any UK fund that invests heavily in the FTSE 100  (still down about 27 % on last year's high) just seems a total waste of time at the moment.

    Even more fun and games over the pond. NASDAQ suffering a really sharp decline and all the tech companies that have seen huge rises recently being sold off sharply. Tesla shares down about 8% at the moment. What are they panicing about?

    All I can say is my BG funds won't be looking so good tonight!
    I'm just a punter, but this is how the FT summarises it:

    US technology stocks fell sharply for the second day in a row on concerns that rising long-term interest rates will derail a historic surge in the share prices of fast-growing companies.
    Thanks. Straight out of the Lee Bowyer book of talking bollox excuses!

  • edited February 2021
    Interesting times on the markets this last few days.

    Any of you experts want to advise why our friends in the city are having a little bit of a "panic" this last few days?

    Investing in any UK fund that invests heavily in the FTSE 100  (still down about 27 % on last year's high) just seems a total waste of time at the moment.

    Even more fun and games over the pond. NASDAQ suffering a really sharp decline and all the tech companies that have seen huge rises recently being sold off sharply. Tesla shares down about 8% at the moment. What are they panicing about?

    All I can say is my BG funds won't be looking so good tonight!
    Not too sure but will be watching a couple of live webinars over the next few days from various fund houses so will try to get the low down. Some of the US stuff is down to Biden & his tax strategies for the big tech firms but no idea why the UK isn't going up after Boris' announcement. Inflation &  Jobless figures came out last few days but they weren't unexpected numbers. 

    My SIPP has gone down almost 4% over the past week - but then it rose over 20% last year so I can't complain. Annoyingly it's the Gilt & Bond funds that are also going backwards when they are in there for safety & to reduce the losses !  Moved out of one Gilt fund into an absolute return bond fund which has stemmed the tide a little.

    I'm sure the FTSE will be gaining momentum (upwards) very soon. 
  • Buy the rumour 
    Sell the fact 

  • So an average of around £600 a month rent for the last 14 years.

    I'm left of centre (not as left as I used to be) and it makes sense to me.
  • No basic financial knowledge. Why would a bank lend you money that was the same monthly repayment as a rental, or even near it? Especially as Mortgages tend to be over 25 years and interest rates may be at almost zero but they won't always be in that period. 

    In a rental you have no buildings insurance, no maintenance, no repairs, you won't have to pay for a new kitchen or bathroom, you won't need to rewire or replace the carpets/flooring, repaint, repair the leaky pipe etc etc. 

    No idea where she lives, but over 14 years based on average mortgage interest rates that 100k would have been around a £75k mortgage. By the time you take off the costs of running a house for 14 years it'd be sub £60k, maybe considerably less.
  • The point is that she has paid someone - who may already have their own home (or, perhaps, homes) - for a place in which to live and, in so doing, has been unable to commence the process of purchasing, with a mortgage, her own home.

    The disparity between the affluent and the vulnerable is, to many, obscene. There are people who seem content to defend this sorry state of affairs.
  • The point is that she has paid someone - who may already have their own home (or, perhaps, homes) - for a place in which to live and, in so doing, has been unable to commence the process of purchasing, with a mortgage, her own home.

    The disparity between the affluent and the vulnerable is, to many, obscene. There are people who seem content to defend this sorry state of affairs.
    Sorry but that's rubbish. Nothing to do with being affluent or vulnerable. People need houses to live in. You can either buy one (usually with a mortgage) or rent one. You can rent from the council or Housing  Association (if you qualify) or privately. If you cant afford to buy a house should it just be left empty just because you don't want someone else to buy it because they can. I have news for you......life isn't equal. Some people have more money than others. Some people clean houses & some people are film stars. Socialism & Communism hasn't worked.

    As a pp said - renting puts the onus on the landlord to maintain the property & not the tenant. I've been both an owner with a mortgage & a tenant. Being a tenant brings a lot less stress when the boiler breaks or there is leak in the bathroom. 

    And there is nothing stopping a tenant from saving up & getting together enough money for a deposit so that they can buy a house. I agree property prices have gone mad over the past 40 years, especially in the South East. 
  • edited February 2021
    The point is that she has paid someone - who may already have their own home (or, perhaps, homes) - for a place in which to live and, in so doing, has been unable to commence the process of purchasing, with a mortgage, her own home.

    The disparity between the affluent and the vulnerable is, to many, obscene. There are people who seem content to defend this sorry state of affairs.
    And my point was she hasn't bought someone a house outright at all. If you look at the full thread including her responses she's talking about a £125k house that she's living in. So she's conveniently forgotten that banks charge interest and that it costs money to own a home in running costs and she's had none of that financial risk.

    She's also got no idea it would appear on where probably 2/3rds or more of her rent goes which is likely to builders, tradesmen, insurance company, carpet shops, kitchen suppliers, a bank in interest and also likely HMRC.

    The sad thing is if she was a little more financially astute or took the time to learn (back to we need to teach this in schools, further education and adult education) I'd pretty much guarantee if she's paying 7-800 rent on a £125k house in Southport she could purchase a house in the next 3 years if she's paying that sort of rent.

    There's a lot of Landlords wanting out so she could source a lease to buy. In that neck of the woods there's probably even investors who'd buy somewhere specifically to do a lease to buy in a 3-5 year period. 
  • Big correction in the stock markets. 
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