Claer Barrett from the FT talked about the latest Retirement Survey from Interactive Investor. If you are interested, here is the link.
This is a reader’s view of how to invest.
“Create a Family Investment Company ( just a regular LTD co ). Fund it with a £500k shareholder loan at 0% interest from you. Open an account at interactive brokers for the company. Have it invest in ETFs. Use the dividends to pay back the shareholder loans. Split the FIC share classes into Growth and Freezer shares. Give the growth shares to your kids for tax inheritance planning.
That’s why I mentioned Interactive Brokers – they can open accounts for companies. Admin costs should be just under £1000/year. LEI is £50/year, virtual mail address £100/year, bank account £50/year. Accountant below £750 if you do the book keeping. Low admin burden if all the assets of the company are just a single large position in an ETF, plus your shareholder loan, running expenses and directors perks ( phones etc )”
What do you think? Sounds clever until you realise there is confusion over investing and estate planning. An individual will need very specific reasons to justify an investment company. The ownership structure must be considered, but that is different from an investment strategy.
We see lots of ideas from investors, sometimes too complicated, but all sound good at the time.
If you have a great idea to manage your money, talk it through. Get your thinking challenged. Even better, write down all the reasons your idea is a poor idea and see what you come with. It’s the easiest thing in the world to justify how clever you are. Invest in good thinking before taking the plunge.