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Post by earthbound on Jun 12, 2016 13:21:02 GMT
An interesting fact for younger investors when the *IFISA comes into play , £25000 invested with SS @12% (interest compounded) will take you 33yrs to become a millionaire (£1052288.34)  I wish i was 25 again, i wish i had £25k when i was 25... and i wish SS had been around then.  Unfortunately i'm not, i didn't and they wern't ...  EDIT* Going via the interest compounded, you would be a millionaire within 33yrs, but you would have to have an offshore account and a very good accountant to avoid the UK taxes  . Wont the AFISA take care of interest tax?
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Post by brokenbiscuits on Jun 12, 2016 13:26:12 GMT
Saving stream makes up 10% of my total investments. In p2p i have 20% total across 3 different platforms that have very different strategies in what they each invest in.
I have a bit in the high interest bank accounts to help with any liquidity issues or take advantage of any opportunities that may come up.
I have a mixture of passive and active investments in my stocks and shares isa. Mostly split between vanguard life strategy80,fundsmith and woodford. I have a Little in a fund for commercial property out of the uk, a little in an Asia and Australia fund too. Quite a chunk in an India fund a a bit of a punt with some money in early stage companies.
I also have a fairly decent sized pension that I've been paying 10-15% of my wages into since I started work.
I own the home I live in and currently have a mortgage for about half its current value. I try to overpay a little each march.
Recently when oil prices tanked down to 30 a barrel I bought into a Russia fund. That's up over 10% in a couple of months. it was possible to take advantage because of the cash I hold with instant access.
I would think I'm more diversified than most. Reinvesting returns where they can best be deployed. For simplicity, if there is something to invest in on saving stream when returns are paid they go back into it.. but just as happy to move things around and invest on dips in anything else.
Saving stream has been in the top return generating investments this year, but is not the best. Fundsmith is on for about 20% growth + dividends and the Russia gamble looks strong, as long as Putin doesn't do something silly like start a war.knowing the right time to cash out will be a challenge as all my other funds are buy and hold strategies. Not much experience with quick (6 months maybe?) Sales.
Diversity is key, and not just diversity amongst one asset or investment type.
What a nightmare scenario to wake up one day to find you have lost everything because you had it all in one failed platform!
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853 
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Post by cooling_dude on Jun 12, 2016 13:26:22 GMT
Going via the interest compounded, you would be a millionaire within 33yrs, but you would have to have an offshore account and a very good accountant to avoid the UK taxes . Wont the AFISA take care of interest tax? Your throwing me, as I have never heard of a AFISA, are you talking about Innovative Finance ISA (IFISA)?
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Post by earthbound on Jun 12, 2016 13:28:00 GMT
Wont the AFISA take care of interest tax? Your throwing me, as I have never heard of a AFISA, are you talking about Innovative Finance ISA (IFISA)? heehee well spotted, yep i mean ifisa. edit i ran it here with 25k to start and got it to 33yrs. www.online-calculators.co.uk/interest/compoundinterest.php
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
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Post by cooling_dude on Jun 12, 2016 13:35:42 GMT
Your throwing me, as I have never heard of a AFISA, are you talking about Innovative Finance ISA (IFISA)? heehee well spotted, yep i mean ifisa. In that case, yes it will isolate the wannabe millionaire for some years, but they will eventually have to start paying tax when their compound interest is above the IFISA allowance. Looking forward to the IFISA... let's hope the platforms and the FCA get their acts together before the next tax year
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Post by earthbound on Jun 12, 2016 13:39:35 GMT
heehee well spotted, yep i mean ifisa. In that case, yes it will isolate the wannabe millionaire for some years, but they will eventually have to start paying tax when their compound interest is above the IFISA allowance. Looking forward to the IFISA... let's hope the platforms and the FCA get their acts together before the next tax year Me too... good job for a fancy accountant to solve here.
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sam i am
Member of DD Central
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Post by sam i am on Jun 12, 2016 13:43:09 GMT
An interesting fact for younger investors when the AFISA comes into play , £25000 invested with SS @12% (interest compounded) will take you 33yrs to become a millionaire (£1052288.34) I wish i was 25 again, i wish i had £25k when i was 25... and i wish SS had been around then. Unfortunately i'm not, i didn't and they wern't ... When I was 25 property was a lot cheaper, you only have to fund the deposit, not the whole investment and it didn't take me 33 years... There's always an opportunity if you look for it.
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Liz
Member of DD Central
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Post by Liz on Jun 12, 2016 13:49:24 GMT
An interesting fact for younger investors when the AFISA comes into play , £25000 invested with SS @12% (interest compounded) will take you 33yrs to become a millionaire (£1052288.34) I wish i was 25 again, i wish i had £25k when i was 25... and i wish SS had been around then. Unfortunately i'm not, i didn't and they wern't ... Then p2p goes pop and you lose everything
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Post by GSV3MIaC on Jun 12, 2016 15:01:50 GMT
In that case, yes it will isolate the wannabe millionaire for some years, but they will eventually have to start paying tax when their compound interest is above the IFISA allowance. Under the current rules there is only a limit on what you can put in .. if it grows to £1m, generating £120k interest a year, it's still not taxable (of course governments have been known to adjust the rules when they think they might be on the losing end of the deal).
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jun 12, 2016 15:12:31 GMT
In that case, yes it will isolate the wannabe millionaire for some years, but they will eventually have to start paying tax when their compound interest is above the IFISA allowance. Under the current rules there is only a limit on what you can put in .. if it grows to £1m, generating £120k interest a year, it's still not taxaIdeable (of course governments have been known to adjust the rules when they think they might be on the losing end of the deal). Idea of a lifetime cap already floated
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Post by dualinvestor on Jun 12, 2016 16:33:40 GMT
In that case, yes it will isolate the wannabe millionaire for some years, but they will eventually have to start paying tax when their compound interest is above the IFISA allowance. Under the current rules there is only a limit on what you can put in .. if it grows to £1m, generating £120k interest a year, it's still not taxable (of course governments have been known to adjust the rules when they think they might be on the losing end of the deal). Funnily enough that's exactly what they did on pensions by introducing the lifetime allowance. And at a remarkably similar amount. In the case of pensions you can have more just pay tax on the balance
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Post by earthbound on Jun 12, 2016 18:54:49 GMT
An interesting fact for younger investors when the AFISA comes into play , £25000 invested with SS @12% (interest compounded) will take you 33yrs to become a millionaire (£1052288.34) I wish i was 25 again, i wish i had £25k when i was 25... and i wish SS had been around then. Unfortunately i'm not, i didn't and they wern't ... Then p2p goes pop and you lose everything And so does every other wannabe p2p millionaire.. not an excuse tho to not try..
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Post by earthbound on Jun 12, 2016 19:02:24 GMT
An interesting fact for younger investors when the AFISA comes into play , £25000 invested with SS @12% (interest compounded) will take you 33yrs to become a millionaire (£1052288.34) I wish i was 25 again, i wish i had £25k when i was 25... and i wish SS had been around then. Unfortunately i'm not, i didn't and they wern't ... When I was 25 property was a lot cheaper, you only have to fund the deposit, not the whole investment and it didn't take me 33 years... There's always an opportunity if you look for it. sorry sam i am .. i must be missing something.. i cant see the link. 
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Post by earthbound on Jun 12, 2016 19:13:16 GMT
And so does every other wannabe p2p millionaire.. not an excuse tho to not try.. Why are you aiming so low? A million is chicken feed these days. You need to start aiming a bit higher ... say a 100mm ISA? now now.. i think your getting a bit greedy. But is that really achievable.. bit late for me now. 
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Liz
Member of DD Central
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Post by Liz on Jun 12, 2016 19:17:06 GMT
Why are you aiming so low? A million is chicken feed these days. You need to start aiming a bit higher ... say a 100mm ISA? now now.. i think your getting a bit greedy. But is that really achievable.. bit late for me now. I feel like a big fat pauper now 
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