B2L vs stocks/bonds/etc... for 5 year investment

thegentleart

eskbanker said:

thegentleart said:
Do Acc funds give you a yearly divident breakdown for your tax return?

Yes, the platform on which you hold the funds (of whatever variant) will issue an annual tax certificate specifying the dividends issued by each, regardless of whether they're reinvested automatically (Acc) or manually, or taken as income....

Great, thank you! I only have some Acc funds in a S&S ISA but that's a very important consideration for funds not in a tax free wrapper (which it would as my savings exceed £20k allowance).

thegentleart

Audaxer said:

thegentleart said:

Username999 said:

thegentleart said:

.... I would like to invest for 5 years so that I'm in a position to buy as nice a house as I can afford.

How would you feel if your 'investment' lost 50% over that 5 years? (including dividends)

I would feel like I haven't invested wisely and hopefully learn a very valuable lesson. I have a very high risk tolerance and it's only money: there are far more important things in life. I'm quite confident that I would hold my position and just wait to buy my dream home.

If you have a very high risk tolerance and a high risk portfolio, you could have invested wisely but your portfolio would be subject to high volatility and could have a 40% or 50% fall in a bad equity crash. That's why I would think a 5 year timescale is better suited to cash savings rather than investments.

Thank you for explaining. Apologies for not being clear. Whilst I have a very high tolerance, I am not proposing to have a high risk portfolio for 5 year horizon. I'm thinking something along the lines of Ray Dalio's all weather portfolio, which only has 30% exposure to the stock market. I believe it's designed to perform in all market conditions. I only brought up my risk tolerance because someone asked about this.

Mrbeethoven

eskbanker said:

thegentleart said:
Do Acc funds give you a yearly divident breakdown for your tax return?

Yes, the platform on which you hold the funds (of whatever variant) will issue an annual tax certificate specifying the dividends issued by each, regardless of whether they're reinvested automatically (Acc) or manually, or taken as income....

Is this true for ACC funds on all platforms?

All of my investments are now in ISAs and SIPPs, so it's not an issue for me, but there was a time when I had some ACC funds in taxable accounts and I used to have to find this stuff buried in the documentation or even calculate it myself. 

This article from 2016 would not have been required if tax certificates for ACC funds always provided this information. Perhaps things have improved?
https://monevator.com/accumulation-funds-dividends/