Lloyds Banking Share Discussion Threads

[pal44] 17/2/2020 12:14

met office gets £1.2B for literally 'Hot Air' waste of money ..

[cautios7] 17/2/2020 11:27

Pierre..are you taking an income from your ISA or do you rely on other funds to live?

[minerve 2] 17/2/2020 11:27

nobbyk1

For on-line broking I have only ever used HL so I couldn't comment on the others as far as service. As far as costs I think it is all swings and roundabouts with the main contenders and a personal choice depending on what type of investing you are looking to do. If you do choose HL I would stay away from their fund of funds type investments because their performance is, unsurprisingly, not that good and the costs are high. Their 'Wealth' funds are generally good and have had bad press with Woodford but I wouldn't let that put you off what are generally good value decent offerings.

With respect to ISAs vs SIPPs I would ignore the ignorant opinions of some of the others on this thread. As investment wrappers they both have their advantages and disadvantages. If you do decide to hold a US holding like IBM for example - reasonable yield -, ISAs are not recognised under the double tax treaty with the US and so dividends will be paid into the ISA net of US Withholding Tax which is not the case for SIPPs held with a compliant broker. Additionally if you contribute into SIPPs you get additional contributions via tax relief from the government at your marginal rate which can add up to a significant difference when compounded over-time. You do not get this with ISAs - an instant 25% return! If you pay tax at 20% then your contributions into the SIPP with be grossed up - so £8K from you will see the government put £2K into your SIPP. If you pay higher rates of tax say 40%, 20% will be automatically contributed from the government and the rest you will need to claim using self-assessment.

When it comes to taxation on exit then if you have a mixture of SIPPS and ISAs you manage your tax liability by carefully taking income and gains out of a mixture of both. The fact the SIPP may tax you for income all depends on how much you want to take out and how much you need to live on. You can always take out 25% tax free at age 55 (at present) and piecemeal throw that into ISAs (if they are still going) anyway.

It is worth seeking advice from professionals for things like this, and paying for it, but I hope this has helped.

[pierre oreilly] 17/2/2020 11:17

isa v pensions

I retired at 49 partly because the income from my isa was sufficient.

i'll pass the pension pot on, and not give it to the city.

i control every detail of my isa.

my wife is 10 years younger than me, and recent changes mean my isa can be transferred into hers when i kick it, so no divi or income tax on my income even after i'm gone. No tax paperwork.

All for the cost of no tax relief when i invested, but i thought - 100% corrdctly - if i let the city manage my money, they'll take most of it for doing so.

For those who end up (at 65) with a million quid pension pot, the city have already taken a mill for themselves. i've paid 20 quid pa, do about £400. And i've invested where i thought best, not where some multi million quid fund manager gets his biggest kickback.

[sidarthur2] 17/2/2020 11:01

All rigged mate and have been for yearz but the prexi tability makes it much easier to trade imho

[1carus] 17/2/2020 10:45

Pensions vs Isa. I will end up with about the same value in each. Although you effectively get a tax bunk at the front end of a pension it is taxed when you take it out, unlike Isa's. If you are a high rate tax payer and are 40 years away from taking your pension the 40% bunk seems quite nice, but over 40 years it is only 1% per year. As you approach retirement age, especially the last 5 years the tax bunk is effectively much better from an amortised point of view. Even at 20% it is worth 4% for each of the last 5 years, 10% for the last 2 and 20% for payments made in the last year. Of which you can take 25% tax free at retirement. Also you dont have to take the 25% in one go... the value would probably be above your ISA threshold so reinvesting it efficiently could be hard. Depending how your pension is set up, you could move a proportion of your pot into a drawdown and take 25% of that as a lump sum, you could effectively repeat this year on year or whenever until your lump sums are all in ISA.

Pensions and what you can do with them are now very flexible, it is well worth seeking advice on the best way of releasing the money from them.

[patientcapital] 17/2/2020 10:40

You make it sound as though Goodwin had no choice. He was the architect of his own downfall.

[jordaggy] 17/2/2020 10:32

When you place a stop loss or buy order, the MM's have full visibility of the 'book'... they claim that it's fair, in order to create a liquid market and facilitate transactions...it's not illegal but hardly a level playing field. Billions have been invested in software that we have no access to. We're just blowing in the wind. The markets no longer move in mysterious ways, they are controlled.

[ekuuleus] 17/2/2020 10:16

They may e throwing lots of money at it but it's not well spent. The corporate culture decimates the effectiveness of such money.

[ekuuleus] 17/2/2020 10:15

Jorgaggy

Great post that algos in control no price determination.

I hadn't realised tulip mania was driven by algos. Or the 1920 boom. Or every boom and bust you care to mention.

[bbalanjones] 17/2/2020 10:00

Who on here was as corrupt as this man?

"Rishi Sunak was part of a small team of hedge fund bosses who shared nearly £100m after an audacious stock market bet that lit the touchpaper on the 2008 financial crisis.

The new chancellor was a partner at the hedge fund TCI when it launched an activist campaign against the Dutch bank ABN Amro in 2007, resulting in its sale to the Royal Bank of Scotland (RBS).

The deal loaded RBS, at the time led by Sir Fred Goodwin, who was stripped of his knighthood in 2012, with crippling debt and led to a £45.5bn government bailout."

[w5amh] 17/2/2020 09:59

Agreed CtR...I still max out on my and the wife ISAs, but my pensions were in Aviva and NFU type companies where the charges were excessive.I have taken my tax free allowance and only contribute into my SIPP from my business to trim my tax liabilities.

[crossing_the_rubicon] 17/2/2020 09:48

True W5AMH but you get taxed at the backend!

ISA - No tax. And much more flexibility generally.

[scruff1] 17/2/2020 09:36

I thought most of them virtually have been. The spend on IT is another reason why the share price should be doing better than it is.

[pierre oreilly] 17/2/2020 09:35

ISAs v pensionsYeah, most now see ISAs superior to pensions. But 25/30 years ago when isa like products were first brought to the market, almost everyone thought I was totally insane for not piling into pensions and therefore getting tax relief. After sticking the max into ISA and it's predecessors every year for me and the Mrs I bet my tax free income exceeds the taxed pension from all but the very highly paid. And there's a big pot to pass onto the kids.

[alphorn] 17/2/2020 09:34

With that level of spend you might ask whether they tried to reinvent the wheel.

[jordaggy] 17/2/2020 09:31

Well hopefully, with an IT spend of 3 billion of our money, we should be able to see off the challengers!

[crossing_the_rubicon] 17/2/2020 09:26

And a SIPP has all those withdrawal restrictions...
And taxes...

ISA is tax free. Wonder how long for.

[mr.elbee] 17/2/2020 09:25

why get a SIPP when you can be totally tax free with an ISA?

a stocks and shares ISA .......... only a fool does a SIPP now or a cash ISA