War Chest - how to get a better return despite low interest rates? War Chest - how to get a better return despite low interest rates?
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  1. #1

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    css_jay99's Avatar
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    Default War Chest - how to get a better return despite low interest rates?

    So most contractors operating a LTD company keep a large chunk of funds in the bank for lots of different reasons.

    You get to a point where swapping accounts for miserable rates becomes just too tedious and hardly worth the effort when you think about the application forms, security questions and access info to remember.

    My main point is that surely they has to be a better way of putting such reserves to work for better returns and very low risks.

    Putting pension and share dealing aside, what are people doing?. I am sure there are a few Del boy's on here

  2. #2

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    Quote Originally Posted by css_jay99 View Post
    So most contractors operating a LTD company keep a large chunk of funds in the bank for lots of different reasons.

    You get to a point where swapping accounts for miserable rates becomes just too tedious and hardly worth the effort when you think about the application forms, security questions and access info to remember.

    My main point is that surely they has to be a better way of putting such reserves to work for better returns and very low risks.

    Putting pension and share dealing aside, what are people doing?. I am sure there are a few Del boy's on here
    Pile upto 50 grand into pre bonds. Yes, they're reducing the chances of any one bond winning from roughly 24,000 to 1 to around 34,000 to 1 but if you win 100 grand or the million, your cares will be pretty much over.

  3. #3

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    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


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  4. #4

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    Quote Originally Posted by TheDogsNads View Post
    Pile upto 50 grand into pre bonds. Yes, they're reducing the chances of any one bond winning from roughly 24,000 to 1 to around 34,000 to 1 but if you win 100 grand or the million, your cares will be pretty much over.
    Companies can't invest in premium bonds, can they? Thought it was only individuals.

  5. #5

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    You could invest in a bond fund.
    I'm alright Jack

  6. #6

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    Hopeless advice regarding Premium Bonds as the T&Cs specifically exclude investments on behalf of others, even if you have a Deed of Trust (here be dragons anyway).

    The main problem with investing a significant fraction of company funds is that your company risks being classified as a CIHC which, among other things, means no tax efficient capital distributions on closure via MVL.

    Personal investments are generally more tax efficient because they benefit from your annual CGT allowance.

    There isn’t much you can do. You may be able to loan money to another company you own, but there are no hassle/risk-free options.

  7. #7

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    Not sure I'd ever want to invest company £ into shares.

    Property is one thing that can be invested in. As with all things, you need to structure the companies properly and get a good accountant involved. Set up a Property company and loan funds into it from the IT company. You can buy the investment property with a mortgage or without one if you have sufficient funds. Put said property on rent and use the profits to repay the loan (or don't repay the loan, whatever).

  8. #8

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    Quote Originally Posted by perplexed View Post
    Companies can't invest in premium bonds, can they? Thought it was only individuals.
    Quote Originally Posted by jamesbrown View Post
    Hopeless advice regarding Premium Bonds as the T&Cs specifically exclude investments on behalf of others, even if you have a Deed of Trust (here be dragons anyway).

    The main problem with investing a significant fraction of company funds is that your company risks being classified as a CIHC which, among other things, means no tax efficient capital distributions on closure via MVL.

    Personal investments are generally more tax efficient because they benefit from your annual CGT allowance.

    There isn’t much you can do. You may be able to loan money to another company you own, but there are no hassle/risk-free options.
    The thread's about war chests. Companies dont have war chests, individuals do.

  9. #9

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    Property and REIT's (if you have access to those)
    Some private investments in private companies (high risk)
    Maybe worth having a look at classic cars and art (you need to know your stuff)

    Some of the absolute dross and scams that I have seen in my time in private investment:
    Investing in training shoes
    Investing in cemetries
    Nigerian princes
    And many more..
    I receive at 2 pieces of crap a week like this.
    I receive about 20 invitations a week to invest in private businesses - lots of these are crap too!
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  10. #10

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    Quote Originally Posted by courtg9000 View Post
    Property and REIT's (if you have access to those)
    Some private investments in private companies (high risk)
    Maybe worth having a look at classic cars and art (you need to know your stuff)

    Some of the absolute dross and scams that I have seen in my time in private investment:
    Investing in training shoes
    Investing in cemetries
    Nigerian princes
    And many more..
    I receive at 2 pieces of crap a week like this.
    I receive about 20 invitations a week to invest in private businesses - lots of these are crap too!
    Cemetaries?? I guess there will always be dead people needing burying.

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