Aviva Share Discussion Threads

[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

[carpingtris] 08/5/2024 19:57

You must be a pasta and baked potato sort of person?

Keep it simple :)

[whatsup32] 08/5/2024 19:22

Transaction in own shares was last 3rd May. Buyback complete?

[mountpleasant] 08/5/2024 18:37

in London town, theres a lot of showing off... conspicuous consumption.
If I see a car, Audi, its a premium version.
Its better to look poor, yet have a 7 figure sum in the bank.
I am still living like a student,,, its great, yet I am in the double-comma club.

[whatsup32] 08/5/2024 17:14

Insurance companies are pretty quick at picking up patterns , you may have noticed high value cars susceptible to theft have had their quotes substantially increased . Audi q5-8 , Land Rovers , BMW’S SUV’S etc.
insurance quotes have gone up substantially to cover higher inflation, lack of new cars and parts and price of new cars continuing to go higher.
Fortunately opposite has happened and profits from insuring cars should be good.

[bhoddhisattva] 08/5/2024 08:11

Sadly in my experience it’s theft that is the issue - too many higher value cars and even horse Lorries nicked - refusing to quote on cars unless in garage or secure storage - and not just the Ferraris and Range Rovers one reads about.

[lewy1970] 08/5/2024 07:49

Motor insurance has and always will be a low margin high volume play. No one posts COR’s below 92 as the market is too competitive. The vast majority of consumers shop on comparison sites - a little brand pull yes but if you are not on the first page price wise you don’t sell anything…..


Yes used car prices are easing but inflation has been built in to the supply chain, the chap spraying the car is paid 20% more than he was 3 years ago….

Margins are typically 5p profit in the pound if you get al your underwriting correct - just look at DLG as they didn’t get it right…

[whatsup32] 07/5/2024 21:37

Insurance companies claimed rates were put up due to .
New replacement cars not available so claimers held on to rentals longer
Parts not available so repairs took longer claimers held on to rental longer
Value of used cars went up due to lack of new cars

That’s all changed
Both used and new car prices have gone down and continue to do so
Parts readily available
EV,s soon available for c£25k

All this is good news for insurers .

Will more competition arrive if insurance sector becomes highly profitable? Probably
But it will take several years for them to get traction and Av should be more than capable to compete .

[fenners66] 07/5/2024 21:22

?
IF there are far fewer claims , the cost of claims falls , the profitability of insurance companies would rise and thus there is incentive for new start up disrupters to reduce insurance costs...

However , we already know that EV's can have minor damage and be write offs because of the damage to batteries.
More electronic gadgetry to ensure safe self driving cars , would inevitably be more expensive to replace... so benefits may well be swallowed up by more expensive claims.

But what we do know is the inflation of the last 2 years gave the insurance companies - they say - the reason to increase costs as their claims cost had risen.

You can understand that as second hand car values rose the replacement like for like cost rose so I get that.
Roll on more car depreciation - they all seem far too expensive still.