| Re: "guaranteed return" funds in a self select ISA [message #390784] |
Do, 01 Juni 2006 00:12 |
|
On Mon, 29 May 2006 19:07:11 +0100, "tony" <to [at] ny.com> wrote:
>Hi there, just a quick question.
>
>I've sold all the shares / funds in my self select ISA and now it's all in cash.
>I don't want to keep it in cash as 1) the revenue don't like that, and 2) I'd
>like a little more growth than the few percent the ISA account gives me.
>
>Does anyone know if there are any "guaranteed return" products I can buy from
>within an ISA? Like the Guaranteed Equity Bonds the Post Office and Virgin sell?
>
>I don't want to go back into the markets directly for a while, and I especially
>don't want to loose my recent gains - I was badly burned in 2000/2001!
You can always put the money into gilts with a maturity 5 years hence.
--
Terry Harper
URL: http://www.btinternet.com/~terry.harper/
|
|
|
| Re: "guaranteed return" funds in a self select ISA [message #391093 ] |
Do, 01 Juni 2006 19:18 |
|
In message <hi5s72phpjth2g9fo30b1nc5b7i0f78n7c [at] 4ax.com>, Terry Harper
<terry.harper [at] btinternet.com> writes
>
>You can always put the money into gilts with a maturity 5 years hence.
But with the exception of Treasury 4.25 2011 all the 5 yearish bonds are
trading over par meaning you are guaranteed a capital loss. This will be
offset somewhat by the running yield of 7.54% (which would be subject to
tax). The redemption yield (i.e. total return) is 4.68 (gross) but you
would be taxed on 7.54% per annum despite only getting 4.68 effective..
--
John Boyle
|
|
|
| Re: "guaranteed return" funds in a self select ISA [message #391102 ] |
Do, 01 Juni 2006 20:48 |
|
Bitstring <n6bJZeEoFyfEFwVt [at] johnboyle1.demon.co.uk>, from the wonderful
person John Boyle <john [at] johnboyle1.demon.co.uk> said
>In message <hi5s72phpjth2g9fo30b1nc5b7i0f78n7c [at] 4ax.com>, Terry Harper
><terry.harper [at] btinternet.com> writes
>>
>>You can always put the money into gilts with a maturity 5 years hence.
>
>But with the exception of Treasury 4.25 2011 all the 5 yearish bonds
>are trading over par meaning you are guaranteed a capital loss. This
>will be offset somewhat by the running yield of 7.54% (which would be
>subject to tax
Not in an ISA it wouldn't.
>). The redemption yield (i.e. total return) is 4.68 (gross) but you
>would be taxed on 7.54% per annum despite only getting 4.68 effective..
--
GSV Three Minds in a Can
Google may be your friend, but groups.google.com posters definitely aren't.
|
|
|
| Re: "guaranteed return" funds in a self select ISA [message #391104 ] |
Do, 01 Juni 2006 21:20 |
|
In message <9sefZmDxZzfEFA3U [at] from.is.invalid>, GSV Three Minds in a Can
<GSV [at] quik.clara.co.uk> writes
>Bitstring <n6bJZeEoFyfEFwVt [at] johnboyle1.demon.co.uk>, from the wonderful
>person John Boyle <john [at] johnboyle1.demon.co.uk> said
>>In message <hi5s72phpjth2g9fo30b1nc5b7i0f78n7c [at] 4ax.com>, Terry Harper
>><terry.harper [at] btinternet.com> writes
>>>
>>>You can always put the money into gilts with a maturity 5 years hence.
>>
>>But with the exception of Treasury 4.25 2011 all the 5 yearish bonds
>>are trading over par meaning you are guaranteed a capital loss. This
>>will be offset somewhat by the running yield of 7.54% (which would be
>>subject to tax
>
>Not in an ISA it wouldn't.
Thats correct. I had forgotten that the OP was talking about an ISA!
Sorry!
>
>>). The redemption yield (i.e. total return) is 4.68 (gross) but you
>>would be taxed on 7.54% per annum despite only getting 4.68
>>effective..
>
--
John Boyle
|
|
|
| Re: "guaranteed return" funds in a self select ISA [message #391834 ] |
Sa, 03 Juni 2006 01:02 |
|
On Thu, 1 Jun 2006 18:18:32 +0100, John Boyle
<john [at] johnboyle1.demon.co.uk> wrote:
>In message <hi5s72phpjth2g9fo30b1nc5b7i0f78n7c [at] 4ax.com>, Terry Harper
><terry.harper [at] btinternet.com> writes
>>
>>You can always put the money into gilts with a maturity 5 years hence.
>
>But with the exception of Treasury 4.25 2011 all the 5 yearish bonds are
>trading over par meaning you are guaranteed a capital loss. This will be
>offset somewhat by the running yield of 7.54% (which would be subject to
>tax). The redemption yield (i.e. total return) is 4.68 (gross) but you
>would be taxed on 7.54% per annum despite only getting 4.68 effective..
So don't buy the stock standing at a premium over par.
If interest rates rise, all of them will lose some capital value in
any case in the short term.
--
Terry Harper
URL: http://www.btinternet.com/~terry.harper/
|
|
|
| Re: "guaranteed return" funds in a self select ISA [message #391835 ] |
Sa, 03 Juni 2006 01:26 |
|
In message <ppg1829feurftuo2sgs38m8b9ikeggn7oa [at] 4ax.com>, Terry Harper
<terry.harper [at] btinternet.com> writes
>On Thu, 1 Jun 2006 18:18:32 +0100, John Boyle
><john [at] johnboyle1.demon.co.uk> wrote:
>
>>In message <hi5s72phpjth2g9fo30b1nc5b7i0f78n7c [at] 4ax.com>, Terry Harper
>><terry.harper [at] btinternet.com> writes
>>>
>>>You can always put the money into gilts with a maturity 5 years hence.
>>
>>But with the exception of Treasury 4.25 2011 all the 5 yearish bonds are
>>trading over par meaning you are guaranteed a capital loss. This will be
>>offset somewhat by the running yield of 7.54% (which would be subject to
>>tax). The redemption yield (i.e. total return) is 4.68 (gross) but you
>>would be taxed on 7.54% per annum despite only getting 4.68 effective..
>
>So don't buy the stock standing at a premium over par.
>
>If interest rates rise, all of them will lose some capital value in
>any case in the short term.
Quite, but why did you say 'you can "always" buy gilts'?
--
John Boyle
|
|
|
| Re: "guaranteed return" funds in a self select ISA [message #391935 ] |
Mo, 05 Juni 2006 00:37 |
|
On Sat, 3 Jun 2006 00:26:41 +0100, John Boyle
<john [at] johnboyle1.demon.co.uk> wrote:
>In message <ppg1829feurftuo2sgs38m8b9ikeggn7oa [at] 4ax.com>, Terry Harper
><terry.harper [at] btinternet.com> writes
>>On Thu, 1 Jun 2006 18:18:32 +0100, John Boyle
>><john [at] johnboyle1.demon.co.uk> wrote:
>>
>>>In message <hi5s72phpjth2g9fo30b1nc5b7i0f78n7c [at] 4ax.com>, Terry Harper
>>><terry.harper [at] btinternet.com> writes
>>>>
>>>>You can always put the money into gilts with a maturity 5 years hence.
>>>
>>>But with the exception of Treasury 4.25 2011 all the 5 yearish bonds are
>>>trading over par meaning you are guaranteed a capital loss. This will be
>>>offset somewhat by the running yield of 7.54% (which would be subject to
>>>tax). The redemption yield (i.e. total return) is 4.68 (gross) but you
>>>would be taxed on 7.54% per annum despite only getting 4.68 effective..
>>
>>So don't buy the stock standing at a premium over par.
>>
>>If interest rates rise, all of them will lose some capital value in
>>any case in the short term.
>
>Quite, but why did you say 'you can "always" buy gilts'?
Because you can "always buy gilts" inside a share ISA. It's just that
they have to have at least 5 years to go to maturity.
If you think that interest rates are going to fall in the short term,
you may be able to get away with a high coupon stock and not lose
capital in the short term.
The interest received is usually better than for cash in a share ISA.
--
Terry Harper
URL: http://www.btinternet.com/~terry.harper/
|
|
|
