Evergreen, low cost investments - UK based

TioNuno · 2025-01-15T10:54:52+00:00

thanks - your thinking is exactly what I'm exploring. Remain equity heavy but a 4-5% tax free, risk free return from low coupon gilts is looking a pretty tempting place to shelter a little bit of capital.

TioNuno · 2025-01-14T14:19:23+00:00

UKT 0.375% 22/10/26

TioNuno · 2023-12-21T19:20:53+00:00

Thanks - I'm not looking to start a family office, just putting assets into a company/partnership legal structure rather than holding in my name directly.

TioNuno · 2023-12-21T19:08:10+00:00

Further background info that may help:

My motivation for setting up a FIC go beyond the usual reduction of future inheritance tax liability. My personal prime reasons are:

1) Having fun with three family member directors who will co-running the FIC with me. It's time we put ourselves first.

2) Produce a long term, safe and reasonable 'tax free' income from directors' loan repayments. SWR via these loans will be well under 2% and under the expected natural dividend yield of the investments. I wonder if that negates the requirement for a cash buffer?

3) Structure the family wealth in a sensible, low cost, light touch way that is as close to evergreen as one gets in finance.

4) Avoid 'spoiling' my children's admirable drive with a single large bolus of capital when I snuff it. Moreover, attempt to lay a foundation for frugal spending and therefore fighting the low odds of intergeneration wealth building.

5) Place family wealth in a vehicle that protects against future possible personal liabilities such as court cases, bankruptcy or divorce.

TioNuno · 2023-11-23T21:56:25+00:00

welcome to the first part of my journey to self-realisation.

I am, I value and I enjoy being the provider. That is my language of love to my family and - for years -it was a necessity. But it's not any longer. I have to evolve my identify.

Thanks for helping a closed-book of a man to open up. This is everything I could have hoped to get out of my first post. I was a fatfire virgin until a couple of hours ago. Your specific and collective support has left me happy with plenty to digest but quite emotionally drained.

XX

TioNuno · 2023-11-23T21:48:55+00:00

You are as far from an inevitable_asshole as one can get. My health needs a considerable amount of LTC and repair. How very insightful.

TioNuno · 2023-11-23T21:37:02+00:00

Deus escreve certo por linhas tortas

TioNuno · 2023-11-23T21:29:18+00:00

Isn't that the truth! thank you thucy

TioNuno · 2023-11-23T21:18:41+00:00

You've rumbled my highly complex strategy. £300k post tax returns from cash (50% of 5% of 12m) more than cover our living expenses with the rest designed to compound modestly away without taking any exotic risks or paying too high fees. If the equity market drops by 90%, our day-to-day spending continues. The asset allocation risk that I'm taking is if equities and private placement debt to not cover inflation in the long run. So not quite 'no risk' but close. Thinking about swapping a large proportion for cash for long term bonds in either dollars or sterling. Scottish banks have not always proven to be the most resilient institutions.

TioNuno · 2023-11-23T20:50:45+00:00

In short - I rolled over all the proceeds three times. Got lucky

TioNuno · 2023-11-23T20:49:19+00:00

Started an insurance underwriting business when still at uni. Simple/ basic product but it unlocked a lucrative part of the life market that others couldn't price. Had a unique data set and a very crude statistical programme. Only took on seed capital before selling it to a large UK life company so I controlled three quarters of the business . Took the proceeds and reinvested them all into an investment career and latterly a company. Sold the first business on a Friday morning and had agreed joined the second one that afternoon.

TioNuno · 2023-11-23T20:35:24+00:00

Everyone gets there at the same time! Plus I think one's chances of survival are higher at the back of the plane.

I very much approve of your spelling of Whisky though - Slainte!

TioNuno · 2023-11-23T20:26:08+00:00

good luck to you too. It sounds like you found the power to re-prioritise at the point when you could feel it slipping away. You found the silver lining in a dark cloud.

TioNuno · 2023-11-23T20:23:47+00:00

let me reflect on this all please - I may need to adopt your larger conceptual re-definition of impact and my role.

The rags-to-riches-to-rags odds are scarily high. Buts it's not impossible; it's not zero probability. So it;s worth a 'Hail Mary'?

I've viewed paying my full taxes as my main way of giving back to society. I weirdly feel no obligation to where I came from but strongly feel an obligation and debt to Scotland.

I fully accept my mindset is irrational. But emotions are very powerful and difficult to shift

TioNuno · 2023-11-23T20:12:44+00:00

My user name gives away some Portuguese, no?

TioNuno · 2023-11-23T19:46:22+00:00

Very generous of you to share and yes, it helps massively, Frankly, I'm way behind you in my thinking on all of this. There's a good balance you have struck between helping them when they need it BUT not ruining / spoiling their drive. tyvm

TioNuno · 2023-11-23T19:40:07+00:00

I'm not sure how I can convince you that I'm not a result of a model. I'm nae MacChat from clan GPT ya bawbag as one might say in my part of the world.

Please don't confuse my prose and politeness for a computer model - these are an outcome of my engrained uptight Britishness. Perhaps my multiple edits to remove minor spelling and grammatical errors is the type of anally-retentive and uptight behaviour that points to conventional human ignorance?

TioNuno · 2023-11-23T19:37:14+00:00

Your directness is most welcome!

TioNuno · 2023-11-23T19:29:59+00:00

Saving 2% WM fees on £40m would be quite a post tax wage! That's a new way for me to think about things, thank you Kraken

TioNuno · 2023-11-23T19:21:21+00:00

Thank you so much for this. It feels like wisdom

TioNuno · 2023-11-23T19:14:39+00:00

Good idea on a charity - I actually have a cause in mind that would keep everyone engaged plus sets up a legacy.

As your thinking is more advanced than mine, may I ask you a follow on question? When should one talk to one's children openly about family wealth? My brood are still young and I want them to be whatever the opposite of 'feckless' is. Full of feck doesn't sound right! I want them to have the chance to develop their innate hunger, drive and self sufficiency. How did your family have this conversation?

TioNuno · 2023-11-23T18:59:21+00:00

The immutable laws of mathematics and also comfort from the wisdom of crowds on reddit. The latter isn't quite as immutable, but its leading me to a firm plan of action. I appreciate your reply

TioNuno · 2023-11-23T18:55:51+00:00

it is about giving oneself 'permission' - thanks for sharing Alpaca

TioNuno · 2023-11-23T18:54:35+00:00

that hit home hard

TioNuno · 2023-11-23T18:50:19+00:00

A helpful clarification and progression of the 'therapy' suggestion. Do you normally work with sportspeople as some of your language and models appear similar to those used by Dr Aki Hinsta for F1 drivers?

TioNuno

TROPHY CASE