Legal & General Share Discussion Threads

[wllmherk] 06/11/2024 16:23

My original holding in LGEN was bought at 213p, I would happily add below that price. MT, SUPR is far and away my largest holding, I also hold a significant chunk of NESF. Gilt yields are really hurting my high yielding equities, I just wish that Reeves had cut spending alongside tax cuts, this would have reassured debt markets. It has long been my concern that a Labour administration are ideologically opposed to spending cuts, hopefully, we avoid a similar situation to what transpired under Truss.

wllm :)

[marktime1231] 06/11/2024 16:14

Regular gifts from surplus income are potentially exempt transfers. They will come under scrutiny if they appear to be a convoluted process of passing on capital. Drawing down a pension for that sole purpose might be challenged as tax avoidance.

To make qualifying exempt gifts you need to demonstrate the source was income, that is was surplus, and regularise the process. For example monthly payments by standing order to a child's or granchild's ISA / JISA or stakeholder pension.

As I keep saying it might be easier just to take the IHT hit on undrawn pension residue, and leave it to a non-taxpayer.

Straying back on to the topic of LGEN I have been biding my time for another opportunity to add. Having last done so at 215p I'm happy to go again at that price, or maybe wait for 210p which seems to be a bumpstop. In the meantime I have been loading up on other income plays taking a battering today, SUPR at 8.5% and NESF at 11.5%. Fingers crossed BoE MPC agree a cut tomorrow.

[petersinthemarket] 06/11/2024 16:07

Under the Tories, it was 2028, but I'm pretty sure Robber Reeves said she would keep it until 2030.

Due to the miserable UK market, some of us have been prioritizing DivYld over CapGain for 12mths.

[fionascott1234] 06/11/2024 14:05

FTSE was at 8302 so there is plenty of time for us to turn red yet today.

[pretax2] 06/11/2024 13:22

Two things
First Buffett can't find value in the market so he's got a big cash position. However the sorts of companies he invests in are 'monsters' (unless he's buying the entire outfit). So he sits on the sidelines.
Fortunately, since I'm not a billionaire (awe), there are some good value mid and small caps in the UK market IMO.

Second, Peter Lynch made the point that people can loose more money waiting for a stock market crash on the sidelines than through a market meltdown. For example, a global stockmarket crash (or severe bear market) has been prediced since about 2015 and, bar Covid, yet to happen.

My cash and equivalent position is 20% (Premium Bonds and PHPD). I'm building on this by sinking dividends into the Royal London Money Market Fund moving forwards.

[mike the mechanic] 06/11/2024 13:13

I'm expecting PIs to prioritise dividend income over growth due to the lower tax rate. Within reason, it even makes sense to buy some unsustainable dividend yields and offset the share price decline against capital gains elsewhere. Of course this only applies outside of ISA or pension wrappers.
L&G fits the former model.

[tuftymatt] 06/11/2024 12:54

I think it's 2028 but you are right that fiscal drag is hurting so many more people right now and each year that number goes up and up.

Good luck all 👍🏻

[petersinthemarket] 06/11/2024 12:39

Interesting discusion on IHT, but what about some way to legally minimise Income Tax? Inflation busting increases in my pensions have pushed me well into the 40% bracket and I defo don't like it. Fiscal creep is catching a lot of people out and it won't be (partly) resolved until 2030 when tax levels start to rise in line with inflation.

[123trev] 06/11/2024 11:54

Really can’t believe how markets reacted to Trump win for us and Europe it’s really really bad thought they would tank

[netcurtains] 06/11/2024 10:08

Pist, just had in the mail

Big dividends are in vogue just had from NS&I they are reducing interest rates

Direct Saver 3.75%
Income Bonds 3.69%/3.75%

[mcunliffe1] 06/11/2024 10:04

Excellent tip there Apparition1. Thankyou.

I've provided a link to the specific advice below:

[apparition1] 06/11/2024 08:52

To minimise the 64% tax (100x60%x60%) that William is on about draw down even if you end up paying 40% tax. Then give to your heirs - as it's coming out of current years income it avoids the 7 year rule.

[netcurtains] 06/11/2024 08:51

Having TRumps fingers near the nuclear button appears to be good for insurance companies...
You never know when you might need some insurance with him at the helm..

[williamcooper104] 05/11/2024 18:18

Life insurance is gold dust for an annuity writer as it's the best asset that matches an annuity

[williamcooper104] 05/11/2024 18:17

It's the double taxation of IHT and then income tax meaning that up to almost 70% of your pension could go to tax So the relative benefit of an annuity is relatively a lot better Generally I think it's bad as it on balance would incentivise spending over saving But for LGENs it's not necessarily so material Not least as not only is there potentially a greater demand for higher margin annuities but also a much greater demand for life insurance (I topped up a few months ago - didn't need a crystal ball to see what way taxes were going)

[mcunliffe1] 05/11/2024 17:48

marktime, I get your drift on the incredibly simple explanation and of course, nothing in life is really that simple.

The real point is the inclusion of the pension pot in the IHT calculations and the removal therefore of a potentially large shielding facility.

In my personal position there's no affect as my overall assets will fall below the £1m given my wife's and my love of travel. But, if you are healthy and wealthy and relatively young, say, 68ish, you may NOW be inclined to draw down the max. each year that keeps you paying tax just below the 40% mark. Such money to be placed into a trust fund for your child or children. After seven years (of the donor continuing to live) such funds are exempt from IHT. before the budget that wasn't necessary.

Those without kids, but perhaps with nephews/nieces may be less inclined now to pass on the pension and hence, draw-down as above and fritter it. Such action would be wise if doing so brought you under the IHT threshold.

On the final point, if AUM at LGEN falls their income from fees fall as well.

[marktime1231] 05/11/2024 16:46

I have still not understood the logic that encouraging retired people to draw their pensions somehow favours annuities. People who have been hoarding pension pots, in order to provide an inheritance, will still want to pass on the residue surely. Going for an annuity over drawdown means there will be no residue at all to pass on.

And you will probably lose out on income too. Unless you have left it very late in life the returns available from drawdown, thanks to ongoing asset management, investment in higher yields, and minimised admin costs means an annuity is probably a poorer option. I suppose there are always some who don't want the hassle, but annuities remain relatively poor value even in this rate environment.

Offer me a guaranteed indexing 9%+ annuity for life and I might change my mind.

Your incredibly simple explanation mc is anything but. If you draw income and spend it how does that benefit your son? If you don't spend it he potentially still has 40% IHT to pay.

Nor can I decide whether it is good or bad for LGEN, it might encourage more people to withdraw their tax free lump sums. AUM will drop and fees with it.

[jubberjim] 05/11/2024 16:30

I have found there is a marked difference between my good self and Warren Buffet

He talks his book and people follow (self fulfilling)

I put forward my views and they still choose to follow Warren Buffet

Go Figure

We do agree on the need to have funds available


Matter of scale

More fun and games over next few weeks.

[yump] 05/11/2024 15:28

But Warren Buffett has a very different set of criteria compared to advfn users.

For starters, as a result of the top holdings flying high, BH portfolio was unbalanced. So selling big chunks is no different from any of us (a few who are sensible) doing the same, except that WB is generally conservative in strategy.

[jubberjim] 05/11/2024 14:34

just done a quick check still not in WBs wheelhouse but happy to be close with 30%

[jubberjim] 05/11/2024 13:35

Will become clearer hopefully later on tonight

Until then the traders? will remain in their bolt holes .

Baby steps still.

[kernelthread] 05/11/2024 13:33

Warren Buffett is 33% in cash/cash equivalents at the moment.

[123trev] 05/11/2024 13:33

If you were you would be sitting on a massive pile of cash and waiting which is what he and a few of his mates are doing at the minute. They are all waiting for the disrupters to finish.

[jubberjim] 05/11/2024 13:28

If they maintain the dividend am fairly content.

The markets are bemused bewildered and scared.

I'm harnessing my inner Warren Buffet

Best of luck

[123trev] 05/11/2024 12:24

Jubber I trade stocks and this is trading a lot like Vodaphone did I rest my case.