macq
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Post by macq on Mar 27, 2018 16:56:48 GMT
In terms of Passive Investing in a tracker, I have looked at a World tracker vs S&P 500 tracker - The S&P 500 appears to have significantly outperformed the World trackers from about 2010 - World trackers consist of at least 50% US based companies - World tracker top 10 holdings are all US based companies - Any drop in the US market is likely to be mirrored in other world markets, so the extra 50% diversity doesn't seem worthwhile - World trackers hold such small amounts of other markets (10% of emerging markets), that any upside is not really going to make a significant difference - World trackers start from about 0.13% OCF (several are higher) were as S&P 500 trackers are half that at 0.07% OCF while that makes sense in one way with America being the dominant market just wonder if - was it the best market before 2010? as thinking it probably was not at times will it be going forward or will that EM/Europe/Japan etc amount make a difference in the future? Also are you becoming a passive active investor by deciding what you think will be the best performing sector rather then leaving it to the index?(but that's not to say your wrong  ) The best thing about investing its more questions then answers & hindsight
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Steerpike
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Post by Steerpike on Nov 9, 2018 11:48:36 GMT
A bit off topic My favorite passive investment has been my tax free national savings index linked certificates that I roll over. Not the most exciting or profitable but I like the guaranteed tax free income that beats inflation and guaranteed capital. Am not surprised these are no longer available for new investment Same here, I have a collection of these that I have rolled over for years, but may have to review this next year when the renewal rate changes from RPI to CPI.
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jlend
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Post by jlend on Nov 9, 2018 12:25:09 GMT
A bit off topic My favorite passive investment has been my tax free national savings index linked certificates that I roll over. Not the most exciting or profitable but I like the guaranteed tax free income that beats inflation and guaranteed capital. Am not surprised these are no longer available for new investment Same here, I have a collection of these that I have rolled over for years, but may have to review this next year when the renewal rate changes from RPI to CPI. Agreed. The link to CPI kicks in at the maturity of each certificate so I will be able to benefit from the RPI link for a few more years with some of the investment. I am still minded to keep them all as a very low risk tax free pot. I will assess at the maturity date of each certificate.
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delboy
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Post by delboy on Feb 22, 2019 18:44:09 GMT
One tip incase anybody is not aware. Do not buy accumulation funds or ETFs in taxable accounts. You still have to declare the dividends even though theyaccumulate and it is a mess to try and do your tax return. I know I’m dragging up an old thread here so apols if everyone is already bored of this. However.... I have many accumulation funds in a taxable account. This is tax year 1 for me. The administrative process of dealing with the taxable income appears to be a complete nightmare. Any advice or shortcuts? Not suggesting for a minute I would wish to evade any tax, but is HMRC really on top of this issue? I can imagine it being a complete minefield for them.
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hazellend
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Post by hazellend on Feb 22, 2019 18:53:10 GMT
One tip incase anybody is not aware. Do not buy accumulation funds or ETFs in taxable accounts. You still have to declare the dividends even though theyaccumulate and it is a mess to try and do your tax return. I know I’m dragging up an old thread here so apols if everyone is already bored of this. However.... I have many accumulation funds in a taxable account. This is tax year 1 for me. The administrative process of dealing with the taxable income appears to be a complete nightmare. Any advice or shortcuts? Not suggesting for a minute I would wish to evade any tax, but is HMRC really on top of this issue? I can imagine it being a complete minefield for them. If your dividends are under 2k there’s no tax but if more than that then you are taking a risk not declaring it. Brokers will send a record of your dividends to HMRC so if your return and their records diverge it could trigger an audit. If it’s not going to trigger a capital gains bill I’d sell and switch to income units asap
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Post by dan1 on Feb 22, 2019 19:09:26 GMT
I know I’m dragging up an old thread here so apols if everyone is already bored of this. However.... I have many accumulation funds in a taxable account. This is tax year 1 for me. The administrative process of dealing with the taxable income appears to be a complete nightmare. Any advice or shortcuts? Not suggesting for a minute I would wish to evade any tax, but is HMRC really on top of this issue? I can imagine it being a complete minefield for them. If your dividends are under 2k there’s no tax but if more than that then you are taking a risk not declaring it. Brokers will send a record of your dividends to HMRC so if your return and their records diverge it could trigger an audit. If it’s not going to trigger a capital gains bill I’d sell and switch to income units asap All these sources of income and much more are linked to the HMRC CONNECT database, it's been operating for several years.
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delboy
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Post by delboy on Feb 22, 2019 19:37:58 GMT
In which case I will heed your advice and start shifting to the equivalent income paying units and get my abacus out to work out what, if anything, I owe. What a pain - I hardly see the benefit of accumulators tbh (I naively thought they were a sensible tax avoidance mechanism!). Oops!
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stevio
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Post by stevio on Feb 23, 2019 6:36:39 GMT
In which case I will heed your advice and start shifting to the equivalent income paying units and get my abacus out to work out what, if anything, I owe. What a pain - I hardly see the benefit of accumulators tbh (I naively thought they were a sensible tax avoidance mechanism!). Oops! Accumulation units do pay dividends still, just they are automatically reinvested inside the investment vehicle. In a taxable account, you have to account for them still to HMRC, just the information is often not provided/not easy to obtain from the broker. Therefore, in a taxable account Income units are easier to manage. In a tax wrapper (SIPP/ISA), you dont have to report dividends, so if you want to save on reinvestment cost of dividends, accumulation makes sense You may wish to use up the Capital Gains Tax allowance if you have a gain this year anyway, so selling and re buying may actually be of benefit. I believe selling acc units and buying income units meets the 30 day bed and breakfast rules. You might want to look at Bed and ISA/Bed and SIPP with your provider, this can make a small saving on dealing costs and transfer your assets to a tax free account (provided you have allowances)
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james100
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Post by james100 on Apr 1, 2019 18:42:00 GMT
In case it affects anyone else, just noticed that Vanguard ETFs (VUKE, VWRL etc) are scheduled to make this quarter's dividend payments on 10th April this year, instead the usual last day of the tax year.
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