Reply With QuoteObvious answer I’m sure but a SS Rolex Daytona (or for a little more a SS blue Sky Dweller) at RRP is where I’ve put my money.
30-50% profit in the first year takes some beating IMO.
Any advice on the above please?...looking for something safe!
Cheers
Obvious answer I’m sure but a SS Rolex Daytona (or for a little more a SS blue Sky Dweller) at RRP is where I’ve put my money.
30-50% profit in the first year takes some beating IMO.
You'd be lucky to get a Daytona at list within 5 years, never mind over 5 years.
Good point well made!!Originally Posted by ~dadam02~
I must admit, I wasn't thinking about watches...but if it does the job!
Would it have to be a new one?...would "pre-loved" appreciate similarly?
Cheers
Last edited by wadsy; 29th November 2018 at 00:34.
Watches generally make poor investments. Be careful.
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The standard answer up to this point has been stocks and shares ISAs due to the profits being tax free. However they’ve been a lot less fun this year so far, with many that previously gave impressive returns falling. Maybe the ground will be recovered, or the brave might see it as a buying opportunity, but the more defensive absolute return funds that are designed to give more modest returns in all market condition are looking more and more tempting. With the world looking pretty chaotic perhaps it’s more a case of at least not losing it at the moment. If anyone else has any more optimistic ideas then don’t be shy, let’s hear them!
How ‘safe’ do you mean?
I say that as nothings really safe nowadays. The ‘safest’ investment would be a deposit account under the FSCS so you capital is guaranteed. However there’s every chance in all likehood that whilst the capital is safe and you’ll get a guaranteed growth every year it will be losing money in ‘real terms’. Inflation will erode the buying power of it.
Then you’ve got something like premium bonds where the capital is safe and you’ll probably get a annual return of around 0.5% to 1%, with the tiny tiny tiny chance of winning something big - think lottery type odds.
Then you’ve got the stock market, which more times than not should outperform most things. However your capital is at risk and we are also in uncertain times.
Then you’ve got everything else - watches, bitcoin, buying gold, property, etc etc. All a risk, some extreme high and almost pure gambling.
As I said nothing is safe nowadays, depends what you’re looking for and how prepared you are to speculate.
I’d say stick it in a cash ISA and draw down every year to buy a full krugerrand a year. Very safe and good protection over GBP fluctuation.
It really also depends on your overall financial picture.
Nice problem to have
If I new that answer I’d be retired by now.
Your asking for financial planning advice from a bunch of autistic watch enthusiasts. Good luck.
Even monkeys with a stick often beat professional fund managers.
Edit - don’t even think about putting in a cash isa as rates are terrible, 1 year =1.3%. Put in regular saving account as much better interest, 1 year=2%
No need for an ISA if you earn less than £1000 in interest (basic rate tax payer) or £500 (high rate tax payer) as interest on savings are not taxed anyway on non-ISA saving account.
Last edited by noTAGlove; 29th November 2018 at 10:48.
Have you looked at peer to peer lending? I’ve put around 10k away for both me and my wife just to get a feel. The loans are generally for only a year or less so you have to keep an eye on them to reinvest then when they are paid but I’ve been getting around 6.5% interest.
Make sure you do a lot of reading, I created an account with lendinvest and use them, there are other companies around where you do get a higher return but I opted for something that read safer.
This is a bit out there and you'd need to take advice/or understand it fully yourself before going ahead:
If you're going to be 55 or older after those 5 years you could put 10k into a pension and get tax relief which would make it 12.5k immediately if you're a basic rate tax payer. without taking anything else into account you could cash the whole lot in at/after 55 and get 25% tax free cash and again assuming you are basic rate (and the amount won't take you into higher rate) be taxed at 20% on the balance. Not taking any growth into account it effectively turns 10k into about 10.625k so that's 6% growth before you start. There's lots of things to consider:
1. You need to earn at least that amount now to do it.
2. What other pensions do you have.
3. Charges.
4. Potential growth or losses if you pick investment funds.
5. Being at least 55 is vital.
6. They could change the rules and make it 60.
7. If you are higher rate the tax relief is even better. Substantially better if when you come to draw it you are back to basic tax. If you were a non tax payer then with all your annual allowance the gain would be even more substantial.
8. There would be no access to this until 55, so if you're 50 now you would need to understand that it's tied up for the 5 years.
9. Probably loads more to consider, this is just off the top of my head.
All I will say is that currently under pensions freedom the benefits for pension planning are better than ever and many people that can afford to are utilising the annual allowances whilst they are still there, especially with carry forward. I suspect that this won't be the case for long.
Man, i advise you to looking on any pyramids or new program. Now IT brings the greatest profits. I earn through the company Mobirich and i will inves more money in partnership programs. If you are afraid of losing - put money on deposit
If you have a mortgage - use it to pay some of it off or put it in a Mortgage Offset Account.
If you have a SIPP, stuff it in that and enjoy the growth and tax savings, but you cannot touch it until you are 55.
If you are happy with more more risky investments look at peer to peer lending - some offer 8% returns.
If not, then open a Santander Current Account. It pays responsible interest with instant access.
If you want to have a bit a bit of fun, rather than buying a new watch, buy an older one which is out of production and not being made anymore. The problem is spotting the best one's to invest in. Personally I would try to get a couple 16600 SD's or perhaps a 16600 and a 11460 or an Explorer 1.
Failing that a issued Blancpain Fifty fathoms from the 80's, but do your homework.
Whoever does not know how to hit the nail on the head should be asked not to hit it at all.
Friedrich Nietzsche
What do you mean by safe. No risk of capital loss?
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Best 5yr fixed rate savings account seems to be around 2.7% , but it is safe...(with the usual caveats)
Not sure on attitude to risk but 10 year US treasury yields 3% per annum makes 35% over ten years plus or minus whatever sterling loses or gains over the period against the dollar. If you want more risk then one of the balanced mandate low cost oeics or etfs would do
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I recently stumbled across some peer to peer lending websites and I must admit they did look appealing considering the % returns offered. Although I did only glance at them.
How risky are they compared to shares in a FTSE 100 company and have you got any recommendations?
Try ratesetter. I use them and they are good, although I've not put in large sums! I've diversified to spread the risk!
If you like burritos, Chilango is offering 8% bond over 4 four years.
https://www.moneywise.co.uk/news/201...your-portfolio
Thanks for all the replies chaps; much appreciated
Cheers
Ideally none to very low risk, yes.
Can't afford to be losing large sums of money.
I've put a large chunk of my (not massive) savings and ISA into Zopa. It's peer to peer, the loans are turned into "microloans" so exposure to loss from default by one borrower is minimised.
The returns are above inflation, and much to my delight, the rates they charge borrowers aren't taking the proverbial. I've made about 5% in the last year which is better than the 0.5-1.0% I'd been getting previously.
Withdrawals can either happen as the loans are repaid (rather than reinvesting), or sold to new investors but subject to a 1% fee.
However, irrespective of my views on whether Brexit is a good thing or not, if we have a no deal or disorderly departure, there is a risk (I'm not saying it will happen, I'm just saying there's a risk of it) that default rates could increase and that profit could turn into a hefty loss.
With that in mind I'm reducing my exposure, as 1% with Financial Services Compensation Scheme*protection may be rather more sensible than 5% without, at least in the short term.
I've had a few grand in ratesetter for 3 years or so with no problems whatsoever. Nice and easy website to use too.
Ignore everything about p2p lending then.
The only no risk investment is a FSCS protected savings account. If the 5 year is a fixed term and you are certain you won't need it prior to that then you can get 2.7% AER
https://www.moneysavingexpert.com/sa.../#fixedsavings
The problem at the moment as I see it is that it’s hard to invest in anything without simultaneously placing a bet on the outcome of the Brexit negotiations, the Trump trade wars, the Chinese economy (growing, faltering, or a debt fuelled bubble?), the emerging economies that depend on the Chinese economy, the future of tech stocks (overvalued or not? Can Apple continue to innovate after a Steve Jobs?*) and so on. Sometimes it’s pretty easy to see which way the wind is blowing and all you need is the courage to do something about it. Now though, the world is a bit of a mess and the mood of the moment in society is conflicted and uncertain. Hopefully things will change before long but it’s a hard call just now which way anything will go. I actually chose to move house earlier this year, hoping to take advantage of depressed or flatlining prices, and gambling that sense would eventually prevail and Brexit wouldn’t turn out as bad as the worst predictions. Which makes watching the news currently a bit too exciting.
*Slightly off topic but can Apple keep innovating? Watching them is slightly frustrating. Yes they’ve worked out how to sell smart phones for painfully high prices, but why isn’t Siri the best AI? Why isn’t HomeKit the clear number one choice for all home automation? Where’s the new modular Mac Pro and monitors? What exactly are they doing with all that capital? Pull it together!
Depends on your attitude to risk and age. If you were 50 and earning c £100k, you could treble your money in 5 years with a safe as houses investment by tax avoidance.
Tax above £100k loses your personal allowance at 2-1, so investing £10k of your effective income above £100k into a pension will save you 62% tax and NI, so for £10k nett, you'd have £26,315 in the pot. A fairly safe 3% investment compounded will have that up to £30k after 5 years. All for the cost of £10k.
With such high tax rates in the UK, using your various tax avoidance options first is better than riskier tax paid investments. In my experience.
I think with Brexit looming and noone being able to predict the result - the best choice might be cash (protected) account and maybe some Premium Bonds as a safe punt. After Brexit you can reassess the situation..
Talking about watches as an investment - not going to lie, absolutely kicking myself for letting my relatively new, worn once BLNR go for RRP last year.....
Sorry mate but can you re-explain this in idiot-speak please??
I've been using my bonuses to pay off my mortgage but if I invest £10k in a pension aged 50 (which I will be in April).... are you saying it'll be worth c.£30k in 5 years??
Not saying you're wrong but if that's the case it looks like I'm better off putting my bonuses in a pension rather than clearing my mortgage early...
Buy cannabis-linked Pharma stocks
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How much do you earn? Pension input up to £40k a year currently attracts tax relief at your marginal rate plus the NI saving. Personally, I wouldn't be clearing low interest debt (mortgage) out of taxed income if I were below the Annual Allowance for pension input (£40k)
If you are a basic rate tax payer (20%) then if you took a £10k bonus, you'd be taxed & NI'd and left with £7,800.
If you are a high rate tax payer (40%) then if you took a £10k bonus, you'd be taxed & NI'd and left with £5,800.
If you are a high rate tax payer earning more than £100k, then your loss of personal allowance is effectively a 60% tax, you'd be left with £3,800.
As long as you haven't bust your pension AA (annual allowance) of £40k. Stick your £10k into your company scheme, SIPP or whatever. You'd get the full £10k. Even with no growth, after 5 years, you'd have £10k there instead of the £3,800-£7,800 you took today to pay down a low cost debt.
Pay the 3% or whatever £10k of your mortgage cost for 5 years (total £1,500) then pay it off when you draw your pension at 55 using your 25% tax free cash element. Let's assume your investment kept up at least with your mortgage interest. You'd be £2,200 better off as a basic tax payer, or £6,200 as a £100k+ earner.
A half decent tax accountant will sort all this out for you.
If you have a mortgage why not reduce the balance owed? The interest saved will probably be much more than the interest earned on a low risk investment product.
If you don't want access to the £10k in 5 years you could look at Venture Capital Trusts. Not especially risk free, but you can qualify for 30% tax relief in the year you make the investment, which is effectively a pretty good cushion against any loss on the capital sum.
Andy
Wanted - Damasko DC57
Because, assuming most people on a posh watch forum are in the high rate tax bracket, it is not tax efficient to pay down low interest loans before using up tax avoidance allowances, especially for pension input headroom when the drawdown is not required until passing 55.
I'm (perhaps wrongly) assuming the OP has the £10k in cash, so already taxed.
Andy
Wanted - Damasko DC57
Thanks again for everyone's input
- - - Updated - - -
Very little mortgage left ~ 5k iirc!
Yep, funds sat in bank!
Isn’t that immaterial?
The op elects to pay into the pension from his salary and uses the 10k cash to spend.
Edit: I’m obviously assuming the op is still in paid employ.
Last edited by Captain Morgan; 1st December 2018 at 18:28.
I'd like to think the currency risk is on the downside though, hopefully sterling will re-gain over time against the $USD
I totally agree. Take 2% from an annual savings plan and see where the land lies in 12 months time.
True the but the equivalent UK ten year yield would only yield c. 17% so there's a margin of safety on the currency. Problem is.of course that there's no decent low risk return available
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Blimey I never knew that!!
Thank you.
Indeed - something I only discovered for myself this time last year when I overheard a colleague saying he was putting 100% of his salary into pension for the rest of the year and living off savings.
You can carry over unused allowance for (IIRC) 3 years, so the limit may be more than 40K.
We aren’t allowed to put 100% of our wages in to the pension, we have to have at least the minimum wage. I’ve used profits on share save schemes in previous years to live on while paying more salary into my pension. I’m only a basic rate tax payer but by paying it in out of my salary instead of a lump sum I get tax and NI relief (32%) so 10k equals 14.7k going into my pension so all good.
If you haven’t put any money into your pension scheme for a while, I think the maximum in one go is £160k, being the last three years of unused allowances plus the current year.
You have to check your own circumstances because it depends on you earning enough but not too much, and includes all of your contributions and your employer’s.
Yep I’ve only recently discovered the tax efficient wonder of pensions as I started my own small business. I funnel absolutely every penny I can spare into my pension. Of course you’re effectively locking it up until you reach 55, but if you don’t need the cash now it really is a no-brainer from a tax perspective (as very nicely explained above).
Didn’t realise this was a posh watch forum.
Ever thought of premium bonds ?
Toying with putting £5k in myself
Super safe but no interest but the chance of a big win
10K in property may get you something in another continent - but if you want something closer to home and easier to manage buy up as many parking spaces as you can in areas of high demand
Some interesting suggestions. Here's my (light-hearted suggestion): half on red, half on black.
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