Time to start investing? £50pm

fimonkey

ahhh, so cheerful cat, -the tax liability of stocks and shares an IT's etc isn't the same tax liability as for savings?.. In that case, why is there a limit to S&S ISA's every year, is it shielding from dividend/CGT only? (Or am I now utterly confused?).

RE: Greaing, what does it mean if the gearing is negative? i.e. -19% for RIG.

sabretoothtigger

Means they arent borrowing money I guess. The fund may also trade at a discount to its assets, NAV

fimonkey

So -19% gearing is good? Thanks for your advice so far.

Re: the tax bit, I've done my own research and found this page http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnSavingsAndInvestments/DG_4016453

So now I see the upper earnings limit for higher rate tax is £34800. I currently earn £33000 p.a but was thinking of taking on a part time job to help with savings, that will pay £5 p.a Gross. This will put me into the higher tax bracket so in that case:

a) Does that change how I look at IT's OEIC's and Income Vs Growth?
b) Should I therefore definately hold my 'funds' in an S&S ISA?

Thanks all, .. the more I learn, the more I realise I don't know!

Lokolo

£5 a year for part time work? Sounds like a ripoff to me.

And don't forget you'll only get taxed the 40% for everything above the limit.

Also, I learnt from business that low gearing can be bad, as it means the business may not be going anywhere, thus not borrowing any money. But obviously in this economy it may be a good thing. However, negative gearing indicates its loaning money out.

google defne:

[SIZE=-1]purchasing an investment with borrowed funds where the interest on the borrowing exceeds the income from the investment.

^^ sounds pretty bad tbh lol
[/SIZE]

competitionscafe

When investment trusts borrow money it is called gearing:

"Gearing
Investment companies, being companies, can borrow to purchase additional investments. This is called "gearing". It allows the company to take advantage of a long term view or favourable situation or a particularly attractive stock without having to sell existing investments.
The idea is to make a high enough return on the investments to be able to pay the costs of the loan, repay it and then make a profit on top of that. Obviously, the more a company borrows ('gears up'), the higher the risk it is taking." Source: http://www.theaic.co.uk/guide/what_are/howtheywork.asp

The AIC site should answer most of your questions:
http://www.theaic.co.uk/guide/what_are/default.asp

http://www.theaic.co.uk/guide/fact_sheets/

You can use the AIC site to search for investment trusts and then that will tell you what the minimum monthly investment is, what the charges are and will also give a link to the providers site. Eg:
http://www.theaic.co.uk/find_compare/trustprofile/savings.asp?mgr=744

You can also search and compare by sector:
http://www.theaic.co.uk/search/geographical/?type=0

eg: Global Growth: http://www.theaic.co.uk/search/geographical/conventional/?sector=GG

fimonkey

Lokolo wrote: »

£5 a year for part time work? Sounds like a ripoff to me.

And don't forget you'll only get taxed the 40% for everything above the limit.

Also, I learnt from business that low gearing can be bad, as it means the business may not be going anywhere, thus not borrowing any money. But obviously in this economy it may be a good thing. However, negative gearing indicates its loaning money out.

google defne:

[SIZE=-1]purchasing an investment with borrowed funds where the interest on the borrowing exceeds the income from the investment.[/SIZE]

[SIZE=-1]^^ sounds pretty bad tbh lol[/SIZE]

ah yes, £5p.a, damn that missing K!

Funny how the more you know, the less you know! Off to read about gearing now.

Thanks all once again