Aviva Share Discussion Threads

[1robbob] 10/5/2024 19:24

Presumably 'Defined Benefit' means exactly that.
The members will receive what they signed up for.
What is your concern?

[alphorn] 10/5/2024 18:14

I have much more concern for the members following a plan transfer.

The situation is IMO not clear at all and I have written to Rachel Reeves, shadow chancellor, on the subject. I have yet to have a reply. More on my thread if of interest.

[1robbob] 10/5/2024 18:03

A question for cjac or anyone else with the knowledge

When are profits/losses from acquired PRTs released to the P&L Account and how are they calculated
.....in laymans terms please?

I ask because an article on L&G in todays Investors Chronicle seems to imply that the profits are front end loaded and primarily positively effecting the P&L Account over the immediate short term

Thanks in advance

[whatsup32] 10/5/2024 11:16

1rob , I noticed that too .
With rates tending lower and inflation getting tamed plus new cars getting cheaper 20% discount on some and better parts availability. I suspect trade update shouldn’t have shocks .
I suspect there will be some shares bought with dividends in 2 weeks time . It’s looking bright

[uppompeii] 10/5/2024 10:23

I had £1000 last summer! Only missed one month out of the year, and hold half the max.

[1robbob] 10/5/2024 10:16

...and back to AV

Intriguing that there does not appear to have been any Buy-back purchases for a week now.
Trading volumes have been pitifully low which implies equilibrium between Buyers and Sellers...for the first time in decades!!
I suspect Sellers want 500p+ and AV do not, at the moment, want to pay 500p+

I am sure that AB wants the Buy-back completed by the time of the Q1 Update
So watch this space....we could see the other side of 500p pdq

[geckotheglorious] 10/5/2024 10:05

tuftymatt
You guys are so lucky. I held the maximum for decades, and only ever got £50 a month here and there(ie 6-8 months a year)

£250 in month! Lucky gits.

[tuftymatt] 10/5/2024 08:37

My return last year with the max holding was just 3% and so far in 2024 I have "won" £650 after 5 draws.

My biggest monthly win is just £250 which has happened twice and I have held the full allocation since late 2021.

It's my safe, tax free emergency fund is how I view this and if one day I do manage to return more than circa £3k a year from it then that's great.

Long term money is better off invested though but 2 people a month do pick up £1m so you never know your luck!!

[1robbob] 10/5/2024 08:14

FYI
Currently the Premium Bonds Prize Pool is 4.40% of the Total.
So this is the return that 'average' investor should achieve

The size of the Pool changes just like interest rates
The larger your investment (max £50k each) the more likely you will achieve the
same rate as the Pool
Tax Free and highly liquid

[ianguerin] 10/5/2024 08:06

whatsup - have you invested in Premium Bonds, where prizes are tax free? Not inflation-proof, but my return is currently 5.4% which is higher than what I've seen reported by the average holder

[ayl30] 09/5/2024 20:05

I do it myself, tax allowances reduced so not much to avoid the taxes now unless you go AIM, VCT route

[pj fozzie] 09/5/2024 17:08

Regarding Tax, have you looked at VCTs. I've had a chunk of money in the Albion VCT family for a number of years. You get 30% tax refund on initial purchase and then any subsequent gains and dividends are tax free. The huge negative is low liquidity - but since I've never actually tried to sell any, then I'm not sure how it works. I put in 30K about 10 years ago. Got 9K taken off my income tax that year. Currently the annual dividend yield is £1734, which is tax free. Current value of VCTs is about £35K. Before I retired, I was reinvesting the dividends (claiming back 30% of the value via tax return, as I was buying new shares). After retirement I took divs as income. Be aware - you have to hold for five years before you sell, or else you loose the tax rebate.

Cheers,
Fozzie

[whatsup32] 09/5/2024 16:56

App. Thanks

[apparition1] 09/5/2024 16:38

Hi Whatsup Only by giving all your excess to charity. I'm a retired accountant and wish I could find a way of reducing taxable income further. Currently every last penny of investments is in SIPPs and ISA's for Mr & Mrs but the defined benefit pension is killing me.

[whatsup32] 09/5/2024 15:09

Thank you PJ
Took advice from this board and put in near £80k into ISA Mr & Mrs . Pre and After April deadline. I used to have plenty in ISA some 20 years ago but sold and closed it for some reason . Wish I hadn’t now:)

My div received will take me into max tax bracket and wondered if accountants had magic wands to limit my tax payments

[pj fozzie] 09/5/2024 13:52

Doing your tax return online is pretty straight forward in my opinion. No need for an accountant. I hope you're using your 20K ISA allowance each year (and your wife's if applicable) to ensure as much of your div income is tax free. Most of my shares are in ISA. Each year I sell stuff outside the ISA to put 40k worth in. In about 10 years it should all be in the ISA and I'll be living completely tax free - at least that's the cunning plan.

We will see if it works out...
Cheers,
PJ

[whatsup32] 09/5/2024 13:36

I've retired too and my accountant of 45 years just passed , I'm now living of my div income too.
Question .
Should I engage another accountant or do self assessment on line myself. Not sure accountant can save much in tax given one source of income . My div income will take me into high income.

[pj fozzie] 09/5/2024 13:30

I retired five years ago at 55 - that seems to make me a "late" retiree looking at the other posts that have just recently been made. Again - like many above - my wife and I are simply living off the dividends and any excess we don't use is simply put back into additional shares. Portfolio is mostly ITs, a couple of Vanguard funds, and several UK companies that I like the look of. I'd probably have done better if I'd stuck to just investment trusts and the vanguard funds, but I can't help myself.

Best investment: British Aerospace - I'd built up quite a large holding before any hint of the Russia/Ukraine war.

Worst investment: Lot's of options, I've lost big time on Game, Carillion, McColls, Marstons and Vodafone. Am continuing to hold Marstons and Vodafone in the hope of recovery.

Biggest regret: Selling large holding of Games Workshop in 2015 when I became convinced the company had lost its way.

At least I'm in the black for Aviva, nice to see steady progress towards £5.00

Cheers,
PJ

[whatsup32] 09/5/2024 09:36

Direct Line
"Insurer takes direct hit from reverse in motor customers" the Times today
Seems motor policies fell q on q by 2.6%

Winslow added " we have seen a positive start to 2024 trading with double digit gross written premium growth in our motor, home and commercial business "

Future looking brighter for DL ?

[uppompeii] 09/5/2024 09:34

Retired at 49 after redundancy and couldn't face going back...61 now and wouldn't have changed it. Time with kids, grandkids, lots of work on the house, building an annexe etc.Generally funded by the tech boom and dividends. Oh, and the wife continued to work a few more years.

[ayl30] 09/5/2024 09:26

I retired at 50. Worked part time / projects and now devote my time to charity work funded by pension / investments. Would recommend it to any one brave enough. Trip is to build a fund first to see you through unexpected costs. Now on 2nd major hol of year, greetings from Slovenia!

[t-trader] 09/5/2024 08:57

I retired at 43 and stock market investing was how I was able to achieve this.
I started investing at 16 with a few thousand I had saved from my childhood. Lost it all within a year. Then started working and made additional investments and had many ups and downs and was wiped out again by the time i was 25. Decided to stay away from the markets then, but in the meantime put a lot of focus on why my investments went wrong and the companies I had chosen to invest in. Returned to investing at 28 , this time going slow and steady and not trying to make a quick buck. My focus was primarily on UK dividend income stocks and US technology stocks. Never looked back since and now earn 6 digits in dividend income alone. I still make a few bad calls occasionally but primary lesson is be patient, spread your risk and do thorough research. Too many folks try to make a quick buck, which is the downfall of many.

PS: Always keep a decent cash reserve to take advantage of market corrections or unforeseen eventualities

[longwell] 09/5/2024 08:25

Mountpleasant, I too retired early at 53.Lots of time with grand children and I actually have time to enjoy life.All those on these boards should take his achievement as a challenge to not just make money but better their lives as we all too easily get caught up in our jobs and miss IMHO the point of living.

[smurfy2001] 09/5/2024 08:21

mountpleasant, your post relates. I retired in my 40s and get the disbelief and envy. People don't want to hear of your early retirement whilst they are still working their butts off, it can be a conversation killer like telling someone you work as an accountant.

[1robbob] 08/5/2024 20:42

whatsup32
No. .the Buyback is not complete, still £115m to go