Reply to: War Chest - how to get a better return despite low interest rates?

[css_jay99]

Spending too much time at home watching morning property programs has giving me an Idea for plan B which is to buy 3 bed properties and have them converted to 4/5 bed for sale, then hopefully move on to teardown & rebuilds.

Plan B dreams aside ......, what about opening a separate company B funded via a structured loan from ltd company. Then invest that money in funds?

[Old Greg]

Easy, I’ve got a good few K on Sir Busker in the 3.35 at Newmarket this afternoon to be placed (in the 1st 8 places) those winnings will keep me in milk and honey for several months


Sent from my iPhone using Contractor UK Forum

Pooper has a chart for that.

[GregRickshaw]

RateSetter

Until Covid hit RateSetter was unbeatable for interest rates, a degree of risk attached but up to 5% return.

Even they RS have had to reduce interest rates (halved) recently but still better than anything else around at the moment.

[Lance]

You dont half talk some crap with your absolute definitions.

You were the idiot with the absolute definition.....
“War chest is personal not company”...

[ladymuck]

I have about 2 weeks sober now, not sure if I like this meaningful me though.
Writting hateful posts about he corporate clout and gov while half drunk seemed more fulfilling though...


Just an idea, diversification is still considered “one of the free lunches” by some. I would not touch a long portfolio but a not so large sum in an all short diversified portfolio. This I think I could be comfortable with for now. It doesn’t take too much work also, there are a few packages in python for efficiant portfolio optimization. Market return data is available.
Finding the most over-laveraged companies and putting together a few.

Well done on the sobriety!

[_V_]

And in English, this means?

The effects of alcohol take > 2 weeks to reverse?

[BR14]

I have about 2 weeks sober now, not sure if I like this meaningful me though.
Writting hateful posts about he corporate clout and gov while half drunk seemed more fulfilling though...


Just an idea, diversification is still considered “one of the free lunches” by some. I would not touch a long portfolio but a not so large sum in an all short diversified portfolio. This I think I could be comfortable with for now. It doesn’t take too much work also, there are a few packages in python for efficiant portfolio optimization. Market return data is available.
Finding the most over-laveraged companies and putting together a few.

And in English, this means?

[GigiBronz]

Crikey, you were feeling a bit deep and meaningful at 2 am!

I have about 2 weeks sober now, not sure if I like this meaningful me though.
Writting hateful posts about he corporate clout and gov while half drunk seemed more fulfilling though...


Just an idea, diversification is still considered “one of the free lunches” by some. I would not touch a long portfolio but a not so large sum in an all short diversified portfolio. This I think I could be comfortable with for now. It doesn’t take too much work also, there are a few packages in python for efficiant portfolio optimization. Market return data is available.
Finding the most over-laveraged companies and putting together a few.

[PerfectStorm]

Going for the miserable 1% here

[jamesbrown]

You dont half talk some crap with your absolute definitions.

FOG.

[TheDogsNads]

Rubbish....
War chest is about not having to work for extended periods.
£100k in the company is worth c. £130k in the hand (caveats are pubs individual circumstances apply).
No point taking all the money out the company at higher rate tax to then find you’re on the bench and could have been extracting it at normal rate.

You dont half talk some crap with your absolute definitions.

[eek]

Rubbish....
War chest is about not having to work for extended periods.
£100k in the company is worth c. £130k in the hand (caveats are pubs individual circumstances apply).
No point taking all the money out the company at higher rate tax to then find you’re on the bench and could have been extracting it at normal rate.

I wouldn't say it's about not having to work for extended periods - it's more it gives you the ability to not have to worry about finding work as money is there to see you through a time when the work may not be available (i.e. times like now).

And it does allow you to control when you personally receive the money to reduce the tax you personally pay on that income.

[Lance]

The thread's about war chests. Companies dont have war chests, individuals do.

Rubbish....
War chest is about not having to work for extended periods.
£100k in the company is worth c. £130k in the hand (caveats are pubs individual circumstances apply).
No point taking all the money out the company at higher rate tax to then find you’re on the bench and could have been extracting it at normal rate.

[eek]

Crikey, you were feeling a bit deep and meaningful at 2 am!

It's accurate though - I'm not sure where is a sensible place to put my personal investments.

As for the warchest that's easy however plan b was setting up a consultancy and then working out how to package things up in ways that are easy for people to sell. And I think I've finally managed to do just that.

[ladymuck]

apart from bonds which are supposedly less risky nobody can predict how it will go moving forward. if a depression would be to set in I'd say most of the assets are already overpriced.

for now probably the best advice is to spend less, a pound not spent (that you don't have to pay yourself out of the company) saves you at least 7% or up to 50%. don't have any high interest rate debt.

invest in yourself, training, business network, culture etc. whatever floats your boat

invest in plan B, C, D or a field where you would build up knowledge over time and be able to get a better return

realise the futility of possessions in the irreversible passage of time and that our attachment to them could derive from our deeply ingrained fear of death. spend more time with yourself and do more mindful introspections, see what actually drives you and brings you pleasure. 100k and complete freedom could make you 10x happier than 100mil and all your future life pawned at the wrong altar

Crikey, you were feeling a bit deep and meaningful at 2 am!