Pension V Trading acc

arrowloopboy

Quick question,i don't currently have a pension ,is their any advantage in having a self administered pension (like what davys offer or simular) versus a trading account ,where you pay no tax of any description ,thoughts please.

robp

arrowloopboy wrote: »

Quick question,i don't currently have a pension ,is their any advantage in having a self administered pension (like what davys offer or simular) versus a trading account ,where you pay no tax of any description ,thoughts please.

Speaking from my very limited knowledge I would think so but it varies on personal circumstances. A pension has strengths who pay high income tax and befits are higher the older a person is.

ixus

Arrow, i get the impression (perhaps incorrectly) from your posts about running a company that you're a director.

Pensions and dividends are the most tax efficient way of maximising your personal returns. I'd suggest spending a decent amount of time researching this or getting advice. Askaboutmoney is a useful site in this respect.

It's an area i'm only investigating myself along the same lines as yourself. The financial advisor thread has some info.

Pro's appear to be tax efficient on income and cgt.

Con's management fees, limited information (probably to enable those fees), can't write off losses, a long time before you can access returns.

May have more info in coming weeks.

arrowloopboy

ixus wrote: »

Arrow, i get the impression (perhaps incorrectly) from your posts about running a company that you're a director.

Pensions and dividends are the most tax efficient way of maximising your personal returns. I'd suggest spending a decent amount of time researching this or getting advice. Askaboutmoney is a useful site in this respect.

It's an area i'm only investigating myself along the same lines as yourself. The financial advisor thread has some info.

Pro's appear to be tax efficient on income and cgt.

Con's management fees, limited information (probably to enable those fees), can't write off losses, a long time before you can access returns.

May have more info in coming weeks.

Correct Ixus,I am a director,
And yes I should really spend some time researching pensions ,the tax efficiency appeals to me ,the paying numptys a couple % doesn't ,to do what I do anyways ,the cgt makes me angry ,that's why I operated via spread betting .
The way i'm looking at it,if I pay myself as much as possible as tax effectively as possible,and just invest in my trading activity ,I don't have all these silly rules to adhere to,i'm thinking pensions are a very good idea ,for those that trade/invest effectively for themselves .
Maybe my pre conceptions are bunkem ,I need to do some research .

On a side note Ixus ,whats your view on crude ,i'm short since 5995.00 (light sweet) ,with the fundimentals all pointing to the spring low of $42,i'm thinking of taking a massive position (relative to me)at this level and adding to it if it goes to $40/$38 ,with no s/l ,this is spare funds that I won't need ,with a view to holding till $70 plus for 300% minimum profit ( if this takes 3 years it doesn't really matter ,rolling 1/2 year spreads are cheap),your thoughts would be appreciated,Arrow

ixus

Macroman has an interesting blog this morning HERE. Twitter @energyrosen & @dacenergy have a better handle on the fundamentals than I do.

There's going to be massive supply for a long time. Factors affecting supply are the usual, war/terrorist attack/sanctions etc. Oil does like a good rally when it turns.

Other things you could look at which may be less margin intensive would be investing in oil related products. Single companies, a broad equity indiex like FTSE/Canadian. Stash cash on deposit in Norwegian Krona (Brent). You could buy a commodity index, most have large weightings in oil but all of them are at like 2002 lows.

Tugboats

Spreadbetting, FX trading and some etfs is what i use. I refuse to let anyone who stumbled out of college with a Bcomm, silly hairstyle and cheap suit advise me on what to do with my money or "manage" it for me. The amount of people who blindly hand over money weekly/monthly without knowing how its being used or what the costs/risks are is frightening

arrowloopboy

ixus wrote: »

Macroman has an interesting blog this morning HERE. Twitter @energyrosen & @dacenergy have a better handle on the fundamentals than I do.

There's going to be massive supply for a long time. Factors affecting supply are the usual, war/terrorist attack/sanctions etc. Oil does like a good rally when it turns.

Other things you could look at which may be less margin intensive would be investing in oil related products. Single companies, a broad equity indiex like FTSE/Canadian. Stash cash on deposit in Norwegian Krona (Brent). You could buy a commodity index, most have large weightings in oil but all of them are at like 2002 lows.

Thanks for the input Ixus,i'm more drawn towards actual crude rather than companies ,because of the amount of data/commentary available on crude .
If crude hits $35 odd ,its at cost of production,at $30 its just not feasible to keep up production for most of the players.
My company uses 2/3k litres of kero/auto diesel per week,i also want to hedge in a year or 2s supply at the right level,i'm not allowed do this via a spread bet ,so I might look into a largely oil weighted commodity index for that.
I wonder what do the likes of Ryanair use?

arrowloopboy

Tugboats wrote: »

Spreadbetting, FX trading and some etfs is what i use. I refuse to let anyone who stumbled out of college with a Bcomm, silly hairstyle and cheap suit advise me on what to do with my money or "manage" it for me. The amount of people who blindly hand over money weekly/monthly without knowing how its being used or what the costs/risks are is frightening

I mostly agree,but most people have neither the interest nor capability to look after their own investments ,hence,they have to run with the numpty in the cheap suite .
Their is nobody going to show as much interest in your money as you,simples.

RobertKK

I use Davys for my pension, I don't have any real complaints, I wouldn't go back to paying someone else to manage my money.
Paying no CGT with a pension is a big advantge plus the tax benefits on money you put in.

ixus

How are the fees in general? Shane Ross had an article about a year ago ranting about fees being taken out of a passive account that didn't trade.

Are you actively trading and do you look at a wide range of products?

Appreciate any feedback.

RobertKK wrote: »

I use Davys for my pension, I don't have any real complaints, I wouldn't go back to paying someone else to manage my money.
Paying no CGT with a pension is a big advantge plus the tax benefits on money you put in.

RobertKK

ixus wrote: »

How are the fees in general? Shane Ross had an article about a year ago ranting about fees being taken out of a passive account that didn't trade.

Are you actively trading and do you look at a wide range of products?

Appreciate any feedback.

I deal in mostly US stocks. Some European.
They have a good range of products, but have room for improvement.
The fees are higher than some other more popular stock brokers.
They have an overseas charge for stocks outside Ireland or the UK of 0.1%
They have a custody charge that works out at 'about' €25.
I say 'about' as my pension account is is US dollars and I notice the custody charge varies a little which reflect currecncy differences.
With Davys you can have your money in Euro, Sterling or Dollars, you can hold a mixture of all three based on where you trade.
They don't have live updating of your account balance, but they update your account overnight.
Oh yeah they have an account management fee that is paid half yearly, so you see the expenses more than you would than if you left it to someone else to manage.
Having had the bank manage my pension, to changing it to myself making the decisions, I prefer making the decisions with my pension, so it depends on what one wants.