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vand

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  1. vand

    Wealth Tax

    Give it all away? That seems to be what the Gates and Buffett are doing with their money these days
  2. vand

    Wealth Tax

    My preferred vehicle is my company salary sacrifice pension scheme, which I intend to fully take advantage of in the upcoming tax year. Also likely to start a SIPP and throw money into that. Between them both I will max out the 40k limit, and then I will also try putting as much as I can into a s&s ISA. This may sound obvious, but worth pointing out that by saving more and spending less you are also avoiding paying a large chunk of your income to indirect taxation!
  3. vand

    Wealth Tax

    Most people, probably even most people on this forum, don't realise that if you follow the crowd in life then your biggest recurring expense year in year out will not be housing, nor transport, nor food & groceries, nor healthcare, but TAXES. This is not by accident; the tax code is designed to maximize revenue and therefore falls most punitively on actions and behaviours that are the most natural and common. Minimizing the taxes I pay has become a personal crusade for me. You may think that you have little control over how much you are taxed, but nothing can be further from the truth. By simply choosing to defer most of my income to retirement and maximize tax advantaged accounts I can change my effective tax rate from about 35% to under 10%, or potentially even less. Over few years the differences are staggering, never mind a working lifetime. People on this forum like to buy precious metals to preserve their purchasing power.. I would suggest that keeping as much of your income as possible totally complements and overlaps with this goal.
  4. vand

    New coin bar 1 kilo Asahi Athenian owl

    They still haven't managed to get rid of the Comic Sans
  5. I'm very sceptical. I don't believe some of these rates being bandied about are either sustainable or without considerable risk. Why would people borrow money at some of these stated rates when they can easily get an unsecured personal loan from Tesco or any one of a dozen well established lenders for 3%? The risk of default must be higher than stated, otherwise why not just borrow money at 3% and reinvest it into crowdfunding to get 7% and arbitrage yourself a handy 4%?
  6. vand

    If silver shot up in value.......

    I tend to agree on the whole. I would consider actively investing in property it if I could find a 7-8% net yield, but that is wishful thinking at the moment with prices where they are. On a personal level we're going to be "forced" into investing in property in the next couple of years as we look to move to a bigger house, and will keep the current one and turn it into a rental, but this is more about what we want for our family than it is about earning a return.
  7. vand

    If silver shot up in value.......

    It doesn't work that well in a hyperinflating economy, though, where the earning power of the asset falls because demand for housing has fallen through the floor when the wealth of the middle classes is destroyed. My wife has a flat in Argentina that she rented when she moved here and although the $USD value doubled 8 years, she had to pay the mortgage at 25% and the rent was never enough to cover the mortgage. all in all she probably just about broke even on it, and that was with rates at 25%, while today they are doubled that (imagine what that's doing to the purchasing power of the population). I think the trick to really doing well in real estate is to find an economy with high nominal inflation rate but also increasing real wealth and where the population's purchasing power is growing, like eg Britain 1980-1995
  8. vand

    If silver shot up in value.......

    When to sell is a constant theme for any asset. I very much like Sir John Templeton's take on the subject. Although he refers to stocks I believe it can be applied to anything: “I spent many years on that problem myself,” [Templeton] replied. “Several years ago I came up with what I believe is the right answer of when to sell. The solution is never to ask when to sell a stock. Instead, you should sell a stock only when you have found a new stock that is a 50% better bargain than the one that you hold.” https://sirjohntempleton.org/2010/07/22/templeton-on-when-to-sell/ That is why I favour using ratios instead of £ or $ denominated prices when choosing where to put my money.
  9. I think the conclusion from this is that I need to go to Rekall...
  10. vand

    Wealth Tax

    TBH I tire of continual debate of who looks after who, who pays for stuff, who is entitled to stuff, and what is the net result. The long-form answer to nearly all these sort of questions can be found in this series. It was made by Milton Friedman in 1980. In the first episode he cites Kong Kong as the sort of economy that most countries should strive to be more like. Was that prophetic or what? Look at how HK has prospered from a fishing village to a international businesss center in the 39 year since the programme was made because of these ideas that he espoused. Look at how countries like Zimbabwe and Venezuela have collapsed under socialist ideals over the same time. If you go back 40 years, Zim & Venezuela were the rich countries on the back of their natural resources.
  11. vand

    Wealth Tax

    At least the work was available to them. If there were better options then they would have been doing those instead. As harsh as it may sound, abject poverty is the natural state of man, and where you had nothing before then that is your starting point. It is only through economic collaboration and the division of labour that we raise ourselves out of mudhuts. You are naive to think the Industrial revolution was all icecream and pancakes. People had horrendous working conditions and did backbreaking labour, but only in the context of what we experience today, because their alternative was backbreaking labour in a field.
  12. vand

    Wealth Tax

    I don't really know what you problem with my views are. I believe societies with small government and low taxes are freer, and more prosperous and better for the majority of its members than societies that are government heavy and where everyone has a claim on their neighbour's wealth. People should be rewarded according to the combination of their talent and their work ethic, and then be allowed to keep the fruits of their labour... or indeed pay for their own failures when they get it wrong. Don't you believe in the same fundamental thing, deep down? The 0% tax idea is just the reductionist argument to see if your views are logically consistent, and I'm perfectly happy to make the argument.
  13. vand

    Wealth Tax

    OTOH it's not a humaritarian crisis in any of these countries that has both the hard left and the hard right constantly at each others throats. Life is different in different parts of the world. I can't pretend I understand the religious aspects of life in most of these countries nor am I particularly motivated to do so, but we can and objectively measure the wealth created, and if they are doing this better than others then it is right that we try to learn from that.
  14. vand

    Wealth Tax

    I mean, how dare they build a whole country up and not have the temerity to charge it to the public coffers:
  15. vand

    Wealth Tax

    https://www.fool.com/investing/general/2014/01/04/10-countries-with-zero-income-taxes.aspx The benefit is that you pay no tax on your income...