Is this a sensible portfolio?

benten69

MrAcrux wrote: »

you are spot on mate. I was contracted to BP looking after their north sea assets. I spend a lot of time offshore which helps, as the client pays offshore allowance on top of normal day rate.

Only reason I knew is because, being in the oil industry myself, that was my plan of action to go contract in the next year or so before the market crashed and I lost my job.

Hope you're prediction of it returning in a year or so is correct, but I have a feeling it's going to be a good 3-5 years before Aberdeen / North Sea oil returns to any kind of normallity, and in that time it will be really slow to pick up.

Fingers crossed I'm wrong though!

MrAcrux

Only reason I knew is because, being in the oil industry myself, that was my plan of action to go contract in the next year or so before the market crashed.

Hope you're prediction of it returning in a year or so is correct, but I have a feeling it's going to be a good 3-5 years before Aberdeen / North Sea oil returns to any kind of normallity, and in that time it will be really slow to pick up.

Fingers crossed I'm wrong though!

you must be glad that you didn't make the switch. I don't think OPEC countries can survive that long with these low prices. Lets see if they do something next month in Algeria. I am hopeful that by middle of next year things should improve but it's anybody's guess. So we will have to wait and watch.

benten69

MrAcrux wrote: »

you must be glad that you didn't make the switch. I don't think OPEC countries can survive that long with these low prices. Lets see if they do something in next month in Algeria. I am hopeful that by middle of next year things should improve but it's anybody's guess. So we will have to wait and watch.

Well, not sure if I am or am not glad....as I still lost my job, and was on a fraction of what I could have been on.

Problem is OPEC (Saudi really) oil costs them an average of $27 to get out of the ground, the cheapest onshore fields are $10 a barrel, so they are not losing money, just making WAY less than they used to be, so I wouldn't worry about them struggling.

Fingers crossed though for something positive next month! I'll let the discussion get back on track, dont mean to hi-jack your thread.

Eco_Miser

MrAcrux wrote: »

I intend to use my 100% ISA allowance every year, so hopefully in about 4-5 years I will have a £100k S&S portfolio.
...
Now as I have figured out what I need to do, I will be moving money from P2P to S&S ISA but I can only move £15240 this year and £20k next year and so on and so forth.

You could move into unwrapped S&S (and pension) straight away. You can earn £5,000 dividends and realise £11,100 capital gains each year without paying tax.
Then each year bed & ISA the allowance worth of investments.

MrAcrux

You could move into unwrapped S&S (and pension) straight away. You can earn £5,000 dividends and realise £11,100 capital gains each year without paying tax.
Then each year bed & ISA the allowance worth of investments.

thanks for your reply. Can you please tell me more about bed and ISA? Also as I am working part time at the moment I need regular monthly income to cover my monthly expenses, hence I have majority in P2P.

System

I used to invest in P2P when it started but realised that it was not what it was cracked up to be. Now I solely invest in top Q funds reviewing them quarterly. I find switching more often makes gains. I do not use fund experts method.

bigadaj

MrAcrux wrote: »

thanks for your reply. Can you please tell me more about bed and ISA? Also as I am working part time at the moment I need regular monthly income to cover my monthly expenses, hence I have majority in P2P.

Bed and isa simply means changing your unwrapped holdings into an isa, normally by buying and selling at the beginning of a new tax year within the tax wrapper.

If you buy income funds then they will typically pay out quarterly or maybe twice a year, but by combining different ones you should be able to get payouts on a monthly or bimonthly basis.

What are your plans if the oil market doesn't pick up, I'm a geologist but work in engineering though have mates in oil and gas and mining. You would expect oil to go higher as high cost producers drop out, but that's already happened to a extent of you look at Canadian tar sands and even us fracking, there's no coordination in opec currently. The need for short term cash flow is iverriding the long term picture, the Saudis are making cut backs in expenditure but still pumping oil, Venezuela is desperate for foreign currency and there are many countries in similar situations.

Eco_Miser

MrAcrux wrote: »

thanks for your reply. Can you please tell me more about bed and ISA?

As bigadaj said, sell some unwrapped funds and re-buy within an ISA (comes from bed & breakfast, where a stock was sold and re-bought the next day to realise capital gains or losses - a trick which doesn't work any more). Some platforms may be able to perform the two transactions simultaneously, so you're not out of the market.

MrAcrux wrote: »

Also as I am working part time at the moment I need regular monthly income to cover my monthly expenses, hence I have majority in P2P.

You don't actually need a regular monthly income - you need sufficient aggregate income, and a large enough buffer to cover your outgoings between lumps of income arriving - say three months outgoings.
I was living for six years on dividends and interest only, various funds paid out at different intervals, some quarterly, some six monthly, one annually, one monthly. It worked out that I had an income five months out of six. I also had several of the high interest current accounts, so I could always pay bills, and any unexpected costs, and they were re-filled as the dividends came in.

jimjames

MrAcrux wrote: »

I appreciate it's not going to be a huge amount but it's a start to long process and I don't want it to start with wrong funds. I intend to use my 100% ISA allowance every year, so hopefully in about 4-5 years I will have a £100k S&S portfolio.

One thing you seem to be missing is that you can actually double all those numbers as you're married.


So you can get £30k into S&S this year and £40k next year by using both allowances. If you're keen to move across asap then that would seem to be the easiest way.

MrAcrux

Thank you all for your suggestions, I have taken all on-board. While I make decision for my future plan I am reducing my P2P exposure as discussed earlier. From £105k I am down to 90k today. Will be putting lump sum in my S&S ISA to the limit.

Many thanks for your valuable insights.

MrAcrux