Want to buy gilts

Legacy_user

How do I buy £350k of gilts that last 40 years

xylophone

http://www.dmo.gov.uk/index.aspx?page=Gilts/Buysell

https://www.fixedincomeinvestor.co.uk/x/bondtable.html?groupid=3

might be worth a look.

EdGasket

Just get a sharedealing account and buy what bond(s) you want. I have some TR18 bought with AJ Bell YouInvest though you can't buy them online, you have to ring up but the dealing charge is just £9.95; no stamp duty and no fund fees for owning gilts directly. Bear in mind that gilts are expensive right now and will fall in value if interest rates rise; thats why I was only prepared to by a short-dated gilt at the moment..

Linton

berbastrike wrote: »

How do I buy £350k of gilts that last 40 years

To satisfy my curiosity, why do you want to do this? Looking at the current list of gilts you can get ones that mature in 2052,2055 or 2060. They are available at 30-40% above face value giving you an effective interest rate of around 2.7%. When global interest rates rise the capital value of these gilts will fall.

Masomnia

Reading this plus your thread on the other board I think you need to see an IFA. And fast!

bowlhead99

Linton wrote: »

To satisfy my curiosity,

You'd probably be sated if you read his posting history over the last couple of years. He's quite a curious fellow so some of it may cause you to crack a smile.

Gist of it is that his work from home self employment has been earning him £100k+ a year and he'd like to use his stash to retire from it in his mid 20s and just live a super-frugal life forever so he doesn't have to get a job. To do this he needs some kind of mildly inflation-beating return and needs to do it without taking any risk because he might as well kill himself if he lost everything and had to get a job.

Every so often he will come on to the savings board or pensions or housebuying ones and ask about things without seeming to listen to the answers and then come back a bit later and ask again. Some have written him off as fantasist and/or troll and have stopped playing. He may just be a genuine fella who's well-meaning but a bit unconventionally wired.

As I don't want to come off as too much of a bad guy I won't post links to the various occasions where people have posted along the lines of "yeah, this guy has previous, see these links as examples, time to move on"... but there are several dotted about.

grey_gym_sock

xylophone wrote: »

https://www.fixedincomeinvestor.co.uk/x/bondtable.html?groupid=3

might be worth a look.

so, a brief explanation of what you'd get:

nearest to 40 years is the penultimate line in the table, with 39 year 11 months - that's a gilt which will be repaid on 7 december 2055.

the price given - 151.37 - is per 100 of face value. that implies that £350k would buy you gilts with a face value of about
£350k x 100 / 151.37 = £231k.

the coupon is 4.25%, which means you'd get interest of 4.25% of £231k = about £9,830 per year (paid as half of that every 6 months). that is taxable income.

then on 7 december 2055, you'd be repaid the face value, i.e. about £231k. which is £119k less than you originally paid. however, you'd have received about £393k interest (before tax) over the 40 years.

coyrls

grey_gym_sock wrote: »

about £9,830 per year (paid as half of that every 6 months). that is taxable income.

I think to be striclty accurate it would be taxable interest and subject to the interest tax free allowance as well as the normal income tax personal allowance.