Abrdn Share Discussion Threads

[netcurtains] 07/11/2024 08:56

Interest rate cut today

[mister md] 07/11/2024 08:03

Recent top-ups in profit ;-) As for the core holding, that could take a little longer ...

[gaygay3] 05/11/2024 17:06

Schroeder’s down 13% today on results 2.3billon outflows and there could be another 10billon worse than Abrdn

[mcunliffe1] 05/11/2024 13:12

I always wanted to swerve an annuity mainly because I couldn't pass it on to my two kids. The decision is indeed adjusted now to become:

Annuity = nothing passed on
v
SIPP = potentially 40% taxed and balance further taxed at child's marginal tax rate.

Given the size of my SIPP I don't see an issue for me as I'll avoid IHT so an annuity isn't the better option. But it may well be for far wealthier people.

[dope007] 05/11/2024 12:19

the other option is Annuities start to look attractive again

[dope007] 05/11/2024 12:17

They are pushing wealthier pensioners to spend essentially

[skinny] 05/11/2024 12:16

You might not live forever, but then again - you just might!

[mcunliffe1] 05/11/2024 12:08

I've just read an incredibly simple explanation of the tax changes being applied to pension pots. I have posted the quote below on PHNX and LGEN threads as it applies equally to them. The simplicity of this explanation has struck a chord with me.

“It’s better to pay 20pc in your lifetime [drawing the money as income] than have your son pay 40pc to the taxman.

This doesn't bode well for AUM in pensions unfortunately.

[mcunliffe1] 05/11/2024 11:11

Hi Pierre: You misunderstood my post #3770. I said:

If you are in your 40's or 50's your pension is something that is far into the future. I recall thinking about that towards the end of my 40's when, fortunately, I'd paid off the mortgage.

I was speaking generally about any person in their 40's-50's rather than you specifically; it was in respect of the distance a pension appears at that age range.

I'm also unconcerned about the last couple of weeks' losses in SP's as I am not selling either.

I accept your view that pensions are partly funded by taxpayer money whilst ISA's are not. It is interesting though that public employees especially teachers, benefit from an 'employer' contribution of about 26% of salary upon which no tax is paid by the employee. Yet, public sector pensions are not being targeted as private pensions are.

[pierre oreilly] 05/11/2024 10:46

Mcun, I don't have high hopes for isa treatment - I expected worse and my expectations were exceeded. As to capping lifetime contributions - I've put a lot in (and never taken any out) and I think it would be very fair to have a lifetime cap, even though i'd lose out financially. And 20k (now almost gteed for at least 5 years) pa i think is too high - again i'd personally lose since every april, I transfer 40k of taxable cash into isas. Btw, like everyone in shares, I lost a lot during the last 2 weeks - but it doesn't really matter, it's inconceivable that i could have sold everything (possible but inconceivable). But easy come easy go, and it will be back breaking records again in a few months (remember the (tax free) divis add a lot to this, it's not just the share price rising).

All in all, pensions are partly funded with taxpayer money whereas isas arent. I think that's the underlying reason she's going after pensions and not isas. And that seems fair. (btw, odd you think i'm 40-50 when i've told you several (too many!) times the age i was when i retired)

[jubberjim] 05/11/2024 07:50

What's it gonna take to get this and others moving in the right direction.

Have done as much as I am comfortable with here there and elsewhere purely for the dividends on offer.

????

[skinny] 04/11/2024 16:00

Steady on!

[mister md] 04/11/2024 15:32

Time for the shorters to take their profits and shareprice to fly ... ?

[mcunliffe1] 04/11/2024 10:51

Morning Pierre: Yes, ISA's did escape. But wait for her Mansion House speech before you raise your hopes too high. If you are in your 40's or 50's your pension is something that is far into the future. I recall thinking about that towards the end of my 40's when, fortunately, I'd paid off the mortgage. It seemed miles off.

Then it wasn't.

However, an ISA is there, present, cash in your hand, or in the case of a S&S ISA, pretty soon could be cash. You may even be able to remove part of the ISA and pay it back in within the same tax year. Pensions are far more restrictive in that aspect.

However, if the govt. of the day chooses to 'purloin' part of our savings it is less politically harmful to do such with the pension - that for many is some years away - than an ISA.

How unfair would it also be to place a lifetime cap upon an ISA that may be set at a level already exceeded by many long-term holders of ISA - such as you?

What may be palatable, just, is a restriction on placing MORE into an ISA if you've reached some upper limit that may be applied. So, no taxation on what is in there but no option to add further. This would not harm most modest savers and may be politically acceptable. A bit like the APD (fly) tax increase on private jets.

[mister md] 04/11/2024 10:27

The recent pull-back IMHO has been due to Labour getting in and the response to the Budget. But at least some of the uncertainty is out of the way now, and after a short period of moaning/mourning/meandering(!) money will return to the UK markets and the FTSE, in true British fashion, will begrudgingly grind higher again ... IMHO of course.

[pierre oreilly] 04/11/2024 10:23

Mcun, not only did isas escape this year, it looks like Rachel is behind them to 2030 with a 20k allowance each year. Not what I expect ted. I assume there's far more cash in pensions than isas, maybe that's why they are a target.

[dr biotech] 04/11/2024 10:23

Thats a lot of financials there MD. I have a few but have some that are (hopefully) more orientated to growth.

One often overlooked benefit of having a direct contribution pension is the ability to pass it down (assuming you don't buy an annuity). DB are more generous, but in the event of an early death they are worse. Something that you rarely see advertised, I guess most like to feel we'll do better than average.

[mcunliffe1] 04/11/2024 10:17

I understand that many US tech stocks report this week or next.
I posted on the PHNX thread that my daughter's pension is very heavily invested in those well known US techs. Top 10 holdings, I think just one wasn't a US tech.

That worries me somewhat as it's hardly diversified. However, she's much younger than me so time to adjust should there be storms ahead.

I also like the UK divi. payers, even if they sometimes don't like us Mister MD.

[mister md] 04/11/2024 09:48

Obviously, in hindsight, the US was the way to go over the past couple of decades. All the exciting new Tech companies are listed on Nasdaq/S&P.

But, with my UK based portfolio now yielding over 8% I think I will stubbornly stick to my current holdings (inc. ABDN, PHNX, LGEN, POLR, LIO, etc etc).

[mcunliffe1] 04/11/2024 09:32

Morning Skinny: would that be the period when we saw the massive fall from about 235p to 160p?

And morning to you PJ84: Thanks for the pointer to the AVIVA thread - you are correct, I do not hold Aviva. I've read your summation of the Temple Bar interview - and your reminder of Warren's view of buy-backs.

I do hold PHNX and LGEN and both have benefitted from taking on heritage pension funds. I presume they then invest those funds in a similar manner to previous investments - ie. not generally in the UK market. Unsure if Rachel's suspected changes may throw a spanner in that work.

But, I thought the Ontario Teachers Pension Fund was a big investor outside of Canada. Australian pension funds likewise. Our water companies appear to places such pension funds are ever happy to invest in - presumably for the massive dividends they reap with little further investment being made.

Movement of most UK shares will, in my opinion, hinge upon the outcome of the US election. There surely has to be more upside than downside potential given the low position many shares currently occupy.

[parob] 04/11/2024 09:05

Strong support on chart around here from 2 years and six months ago. Might get a decent bounce if it holds.

[skinny] 04/11/2024 08:49

FWIW - between June and December 2023, ABDN spent £300,416,942 buying back 161,156,859 shares @average 186.41p

[jubberjim] 04/11/2024 08:06

Will believe it when I see it

To date Rachel Reeves has not set the market alight a series of mis steps so far.

Reserving judgement .

Think US elections will be the kickstart or further falls to come .

Having said that down here is very difficult to see any gain in seelin this particular share at these levels