Long term hold2 Jun 2025 14:16
ABDN is the kind of share that will do well in an ISA, 9~10% dividend TAX FREE.
I have ABDN on the wrong side of an ISA right now.
Originally, the idea was if ADBN sank, at least I can use the capital loss for filing taxes.
Now it's looking like a massive capital gains bill.
Rachel Reeves compelling pension funds to invest British is probably a plus, since buying ABDN is fairly low risk.
If the share price doubles, so it goes above £3, promotion back into FTSE 100 will be on the cards.
As the passive FTSE tracker funds have no choice but to buy, it will give a further boost.
In the long term I am trying to add some LGEN and ABDN to an ISA, on dips.
Something like £200k in a range of shares generating 5%+ tax free will do me fine.
In retrospect, I should have sold some other shares in the ISA to pick up some ABDN.
Cash is queueing to get into ISAs, so I have to pay tax, on capital gains, dividend and interest.
Sadly, by the time I have the perfect balanced portfolio,
I will die, and Rachel Reeves will get 40%. IHT.
The real money pit is a house, maybe that will help to reduce the assets.
If I spend £10,000 on kitchen renovation, it only costs £6,000, because £4,000 would have gone on to pay IHT.
The irony is, a nicer kitchen just increases the value of the house, and she wins again.
Boomer problems.
There must be a market niche for helping Baby Boomers get rid of their assets legally.
Something like a offset mortgage.
For example, you set up an ISA with Legal and General, but it's still in your name.
Let us say the ISA is worth £100k, and generates 5%.
Legal and General lets you withdraw money from an offset account, up to £80k, so they have a safety margin.
The money you borrow generates interest, which can be paid for by the ~5% dividend from the ISA.
Let us say you owe £70k in the offset account, when you die, Legal and General will collect £70k from the ISA, leaving £30k to your estate. This setup retains the tax free status of the ISA while you are still alive, and reduces IHT when you die. Rachel Reeves will probably ban it. Bum.
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