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Post by Deleted on Jul 10, 2019 15:31:18 GMT
I have an advisor, but I like to review all the options before I start to listen to him, that lets me spot the interesting from the normal etc.
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james100
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Post by james100 on Jul 10, 2019 16:37:00 GMT
bigfoot12, IFISAcavaCan I ask how you are investing in whisky? I looked into this a few years ago when bullionvault launched a subsidiary (whiskyinvestdirect) but could never get my head around it...I mean, I'm assuming you aren't keeping it at home, right?
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bigfoot12
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Post by bigfoot12 on Jul 10, 2019 17:21:39 GMT
bigfoot12 , IFISAcava Can I ask how you are investing in whisky? I looked into this a few years ago when bullionvault launched a subsidiary (whiskyinvestdirect) but could never get my head around it...I mean, I'm assuming you aren't keeping it at home, right? I use whiskyinvestdirect. Reasonably happy, apart from the tax concern I mentioned earlier. Keeping at home would be very expensive as that would be duty paid, and it doesn't, in general, appreciate once bottled. IFISAcava's 28% annualised IRR dwarfs mine.
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IFISAcava
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Post by IFISAcava on Jul 10, 2019 18:10:13 GMT
bigfoot12 , IFISAcava Can I ask how you are investing in whisky? I looked into this a few years ago when bullionvault launched a subsidiary (whiskyinvestdirect) but could never get my head around it...I mean, I'm assuming you aren't keeping it at home, right? I'm a whisky drinker. I have bottles at home and in storage, yes. And yes, it does need a lot of space, and a lot of will power not to drink it. I got into Japanese whisky at the right time. www.rarewhisky101.com/indices/distillery-specific-indices/karuizawa-index
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IFISAcava
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Post by IFISAcava on Jul 10, 2019 18:13:07 GMT
bigfoot12 , IFISAcava Can I ask how you are investing in whisky? I looked into this a few years ago when bullionvault launched a subsidiary (whiskyinvestdirect) but could never get my head around it...I mean, I'm assuming you aren't keeping it at home, right? I use whiskyinvestdirect. Reasonably happy, apart from the tax concern I mentioned earlier. Keeping at home would be very expensive as that would be duty paid, and it doesn't, in general, appreciate once bottled. IFISAcava 's 28% annualised IRR dwarfs mine. See, I told you I have an edge. Rare, vintage, long-bottled whisky up 7 fold in 10 years www.rarewhisky101.com/indices/market-performance-indices/vintage-50-index
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IFISAcava
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Post by IFISAcava on Jul 10, 2019 18:14:58 GMT
...7 figure total pot,... 17% whisky [currently my highest XIRR of all - 24% pa over 7 years, even allowing for 1/3 of it to be drunk[\quote] I guess I don't quite understand you. Does the 17% whisky include the 1/3 you have/are going to drink? Have you drunk £85k of whisky over the last 7 years? or is it that you plan to? Even if it is £57k of whisky that is quite a lot! I thought I had a few former colleagues who drank too much. And presumably you will have to pay a lot of duty. Do you have to pay VAT if you drink it yourself? I mean that I only allocate two-thirds of my purchases as investments. I haven't drunk the other third yet. I plan to do so gradually over time. I also have expensive tastes - quality over quantity. EDIT (which also means that I may end up drinking the lot if my other investments do well!).
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IFISAcava
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Post by IFISAcava on Jul 10, 2019 18:16:33 GMT
I like P2P for tax efficiency reasons. I think P2P is very mentally demanding and don’t see myself doing it in retirement. Completely hands off passive is my long term preference. I know some people that have made a lot of money from whisky. I don’t think I have an edge in anything to give me enough confidence to outperform. Exactly this. p2p interest tax free in ISA, S&S capital gains tax free (up to the allowance) outside ISA.
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IFISAcava
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Post by IFISAcava on Jul 10, 2019 18:45:10 GMT
... 17% whisky [currently my highest XIRR of all - 24% pa over 7 years, even allowing for 1/3 of it to be drunk!]). I know some will say that's too low in equities and too high in P2P and commodities, but I do feel I have an edge in whisky that I don't in equities (though I acknowledge the volatility (!) of spirits investing, and other inherent risks). I have a bit of whisky, but it seems that it has a difficult tax position. Do you have a view? It probably should be CGT free, but it isn't worth it for me (with my small position) to argue that in legal costs. But then if I pay CGT it seems that storage costs and insurance are probably not deductible. But these costs are significant over a 3-15 year holding period. My growth has been nothing like yours. You are saying that if you invested £1 and drank none, it is worth £6.76 after 7 years. That is remarkable! I suspect that I am overpaying for my raw spirit. Wasting assets and chattels under £6k each are exempt from CGT, unless you are a business or trader (my understanding). re growth rates: see my charts. The answer broadly is yes
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IFISAcava
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Post by IFISAcava on Jul 10, 2019 18:53:24 GMT
I like P2P for tax efficiency reasons. I think P2P is very mentally demanding and don’t see myself doing it in retirement. Completely hands off passive is my long term preference. I know some people that have made a lot of money from whisky. I don’t think I have an edge in anything to give me enough confidence to outperform. Exactly this. p2p interest tax free in ISA, S&S capital gains tax free (up to the allowance) outside ISA. although having now reached my p2p limit and rebalancing, will be allocating future ISA allowances for S&S again.
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bigfoot12
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Post by bigfoot12 on Jul 11, 2019 9:00:20 GMT
... it seems that it has a difficult tax position and chattels under £6k each are exempt from CGT, unless you are a business or trader (my understanding). re growth rates: see my charts. The answer broadly is yes But the link you provide has many bottles over 50 years, so that might indicate that they are not wasting assets.
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IFISAcava
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Post by IFISAcava on Jul 11, 2019 14:43:23 GMT
Wasting assets and chattels under £6k each are exempt from CGT, unless you are a business or trader (my understanding). re growth rates: see my charts. The answer broadly is yes But the link you provide has many bottles over 50 years, so that might indicate that they are not wasting assets. Indeed. All to be argued if it ever came to it. But chattels under £6k covers most bottles.
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IFISAcava
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Post by IFISAcava on Jul 12, 2019 8:34:51 GMT
Wasting assets and chattels under £6k each are exempt from CGT, unless you are a business or trader (my understanding). re growth rates: see my charts. The answer broadly is yes But the link you provide has many bottles over 50 years, so that might indicate that they are not wasting assets. Oh, and there are very few bottles over 50 years - the dates are of distillation not bottling. I think it hard to *expect* a bottle to last 50 years, even if a few do make it. But as I said, arguable if it comes to it, and only needs to be argued for bottles over £6k and when over the annual CGT limit.
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