Yearly Archives: 2016

December Dividend Income – How to go about building a dividend machine as a beginner 7

If 2016 has taught me anything, it would be that dividends are king. Throughout the volatility, political shocks and market turbulence, one thing has remained certain – great companies that I have shares in have paid me an increasing stream of dividends. Make no mistake, this is no accident. The truly great companies make profits no matter the market environment Take Royal Dutch Shell (RDSB) for instance. It has paid out an ever increasing dividend for over 60 years now. This means that it has not cut its dividends during times of war, political upheavals, recessions, revolutions, oil embargoes, financial crises all that has happened in between. It is a […]

Gift Relief on Shares in a Business – Capital Gains Tax

Individuals have a number of reliefs from Capital Gains Tax. Some of the reliefs include Roll-Over relief, Incorporation Relief, Gift Relief and Entrepreneurs relief. The different reliefs have different conditions that need to be met attached to them so you will need to look at these first in order to determine if you are entitled to any of the above mentioned reliefs. The different reliefs also have different implications to your liability and a brief description of each of the reliefs is given below: Roll Over Relief – defers tax on chargeable gains when a person disposes of a qualifying business asset and buys another. Incorporation Relief – Applies when […]

Use the ladder method to determine how to start your journey to Financial Freedom – Ramit Sethi

When it comes time to begin your journey to financial independence, it can be hard to know where to start. There is so much information out there that it can get overwhelming. This is the biggest reason I started my journey to financial independence later than I would have liked. I didn’t know whether I should pay off debt, increase contributions to a pension, Invest via an ISA (or Roth IRA for US citizens) or simply to stick any money I have into a mutual fund and let it compound over time. Thankfully, Ramit Sethi has set the order out in his book I Will Teach You To Be Rich: […]

Fundsmith Equity Income Fund Full Portfolio Breakdown 2

The Fundsmith Equity Income Fund has had a remarkable run since its inception in 2010. Over this time, it has produced gains of just over 188% or 19% per annum. This is simply phenomenal. It is no wonder they call the funds manager, Terry Smith,  the UK Warren Buffet. Terry Smith has done an amazing job and it is no wonder that it is only one of three mutual funds I am invested in. The performance of fundsmith and its exceptional returns haven’t gone unnoticed and I have had a few readers contact me asking what individual stocks the fund holds. As such, I have done some research and found […]

How Debt Can Make You Rich!

Debt seems to make the world go round these days. Everyone I know has some debt, whether it be mortgage debt, student loan debt or consumer debt which is the worst of them all. Whilst mortgage debt and student loan debt are necessary for most who want to get on the housing ladder or get a good education, there is no sound reason people should have consumer debt (credit card debt). You see, being in debt erodes wealth – it is the number one wealth killer. And the rich understand this and use this to get richer. In order for people to accumulate debt, someone has to provide the financing. […]

National Grid Share Purchase – The Ultimate Blue Chip Bond Proxy

In the current low interest rate world, investors have had to bend the rule book. Whereas in the years gone by, you could get a safe and stable income via a portfolio of bonds, it is no more the case. Investors have had to turn to stocks (equities) of companies who produce predictable cash flows year after year in order to get their required level of income. They have had to turn to dividends from bond proxies. What are Bond Proxies? Bond Proxies are shares of companies whose cash flows and profits are very consistent – like coupons paid on a bond – and they also pay out a large […]

What Stage Of The Bull Market Are We Currently In ?

The current bull market has had a barn storming run and is currently in its 8th year. Typically, when bull market runs get this long and have racked up positive returns of over 200% during this time, investors start to question how much longer the bull has to run. I recently came across a great article which aims to show where the markets currently are in terms of the investment cycle. The evidence currently points to the markets being in the latter end of the mid-staged bull market and about to enter the peak of the bull. When markets normally are about to enter its peak stages, we see heavy […]

AJ Bell Youinvest Dividend Reinvestment Programme 3

When it comes to buying shares online, there are a number of brokerage platforms you can chose from. Each has there own merits and there are enough online platforms going around to cater for your own individual needs. One of the platforms I like is AJ Bell Youinvest. With an easy to use interface and low annual custody charges, Youinvest is great for investors who want to stick to a buy and hold or passive approach to investing. If on the other hand you want to regularly buy and sell shares (trading), there are far better platforms out there. One of the downfalls Youinvest has is that it does not […]

November Monthly Stock Purchase – United Utilities, Sainsbury, Unilever, PZ Cussons, Smith & Nephew, Centrica 2

Sector rotation. That is how I would describe the stock market over the course of November. With the election of Trump as president and the threat of inflation around the corner, investors have sold off defensive bond proxy stocks in favour of those with higher growth potential. Sticking with my monthly stock purchase goal (LINK), I bought shares in 6 companies over November. Here is the list of stocks I bought, United Utilities (UU) – The utilities sector was the hardest hit last month as prices of shares went down together with bonds. This provided a great opportunity to get into UU at 914p a share. In total, I bought […]

Pensions and Death Taxes – How It Works As An Inheritance Planning Tool

In the years gone by, death used to be followed by a huge 55% tax hit on any money you left behind to your loved ones. However, rules introduced last year mean it is now possible to pass on your entire pension pot to your beneficiaries, tax-free. ‘In this world nothing can be said to be certain, except death and taxes.’ Benjamin Franklin How Passing On Your Pension Tax Free Works If you die before the age of 75 and have a Self Invested Personal Pension (SIPP), you can pass on your entire pension fund to your beneficiaries tax free. The money can be passed down as a cash lump […]