asset location by tax wrapper

port_of_spain

Mr.Saver said:

Apparently, I have the highest % of unwrapped assets so far. I blame most financial derivatives aren't available in ISA and pension, so I had to keep them unwrapped.

Or perhaps you should ditch the financial derivatives and buy a PPR instead ... Yours is the first response with no PPR, though I'm sure many more MSEers don't own a property.

Mr.Saver

Albermarle said:

ISA 53%
Pension 16%
Unwrapped 31%, of which 24% are investments and 7% cash

No residential property asset?

port_of_spain said:

Mr.Saver said:

Apparently, I have the highest % of unwrapped assets so far. I blame most financial derivatives aren't available in ISA and pension, so I had to keep them unwrapped.

Or perhaps you should ditch the financial derivatives and buy a PPR instead ... Yours is the first response with no PPR, though I'm sure many more MSEers don't own a property.

It would depends on which one is more profitable (and fun). Derivatives are riskier and the potential return is also higher. I will buy a home one day, but right now I feel more adventures than that.

DiamondLil

Will someone please tell me what PPR stands for.

Mr.Saver

DiamondLil said:

Will someone please tell me what PPR stands for.

Principal Private Residence

kuratowski

Principal Private Residence - your main home that you own and live in, is shielded from capital gains tax

DiamondLil

Ah thanks both.

Mr.Saver said:

DiamondLil said:

Will someone please tell me what PPR stands for.

Principal Private Residence

kuratowski said:

Principal Private Residence - your main home that you own and live in, is shielded from capital gains tax

eskbanker

DiamondLil said:

Will someone please tell me what PPR stands for.

The above answers are likely to be more relevant given the context, but there is another explanation that applies closer to home sometimes:

Q. What's "PPR" under some people's usernames?
A. PPR (Posting Privileges Removed) is the term we use when we stop someone posting on the forum.

MarkCarnage

port_of_spain said:

MarkCarnage said:

Unwrapped 30% Mix of equities, cash, NS inc PBs and gold. 

I'm counting Tax Free NS products (PBs and Saving Certificates) as a separate tax wrapper, if you feel like giving a separate percentage figure for that.

I suppose if your gold happens to be in a CGT-exempt form, that would also be a separate tax wrapper (if it amounts to at least 1%!).

In that case the NS wrapped products become about 18% with unwrapped being 12% or so. 
Gold is not in a CGT exempt form. It's about 2]% so not a game changer. Do have some more in look through of wealth preservation ITs too which are wrapped. 

port_of_spain

With 13 answers to the survey, ISAs and Unwrapped have made a bit of a comeback, with the mean MSEer now holding:

Pension 33%

PPR (i.e. your own main home) 31%

ISA 22%

Unwrapped 9%

Tax Free NS&I 4%

Work SIP 1%

(Only 1 answer had no PPR; for those with a PPR, the mean PPR was 34%.)

And the median MSEer is now holding:

Pension 35%

PPR 35%

ISA 19%

Unwrapped 7%

(that adds up to 96% — because of how medians work)

So basically, Pension and PPR are very similar, at about 1/3 of total assets each, with the majority (but not all) of the remaining 1/3 being ISA.

However, MSEers' exposure to changing property prices will be greater than that, because some have mortgages, and we're measuring PPR by net equity, not by gross value of property (either method has some advantages; just had to pick one).

For 6 MSEers, their largest tax wrapper is Pension; for 4, it's PPR; for 3, it's ISA.

Albermarle

In the UK as whole , pension assets are larger than property . However this includes a valuation for DB schemes , which are excluded from your survey.