Preparing for the Crash

kinger101

valiant24 said:

[Deleted User] said:

valiant24 said:

Sell equities obviously, with the intention of buying back later, but then what?

What? This is called timing the market and ~90% of people get it wrong. Are you among that 10% successful?

I will do what I usually do, which is nothing. And buy full £20k load to ISA shares account every year.

Go ahead and sell now. I don't mind picking up cheaper shares during the crash. DCA strategy (dollar cost averaging) is wonderful and require no skill, no effort and no time wasted on timing the market and getting burned.

Thanks for taking the trouble to reply.
But you didn't answer the question I asked, instead you comment upon the aspect that I said I wasn't interested in discussing!

Don't worry, the silver and bitcoin loons will be along soon to answer your question properly.

talexuser

Judging by last Spring's sell off, my CGT and PNL did well through the dip. I was probably getting overweight in the likes of Fundsmith and Smithson etc but they recovered ok eventually. I too think a correction must come so spent last year put all the dividends into the capital preservation area. I haven't sold anything except the normal CTG allowance to rebase, and the next decision is what to do with April's ISA allowance, capital preservation, global growth/trackers, or just growth. I'm not going to try to time the market, just ride through any crashes not needing to sell anything, so will probably go for safety.

Linton

valiant24 said:

Linton said:

It is not true that if ii or AJBell went bust all but £85K of your cash may be lost.  ii or AJBell wont be holding your money and if they did it would be ringfenced.

I would be happy to be corrected, but I don't believe that that is true.   Investments through a platform are (or should be) ring-fenced, but I do not believe that to be the case with cash held within a SIPP/ISA/dealing account.

You are confusing two different issues.  The concern is the bank where the platform deposits the cash goes bust, not the platform.  Every regulated company/person holding money on behalf of a customer will keep it in a ring fenced account - even a small high street solicitor will do this.

See what HL say:

All client money is held by us on trust and is segregated from our own funds in accordance with the FCA’s client money rules and guidance so that any creditors of Hargreaves Lansdown would have no legal right to it and we cannot use any of this money to cover Hargreaves Lansdown's obligations.

valiant24

Linton said:

valiant24 said:

Linton said:

It is not true that if ii or AJBell went bust all but £85K of your cash may be lost.  ii or AJBell wont be holding your money and if they did it would be ringfenced.

I would be happy to be corrected, but I don't believe that that is true.   Investments through a platform are (or should be) ring-fenced, but I do not believe that to be the case with cash held within a SIPP/ISA/dealing account.

You are confusing two different issues.  The concern is the bank where the platform deposits the cash goes bust, not the platform.  

OK, thanks.   So if whichever bank AJBell uses went bust while I had £185k of cash within my SIPP, would entire £185k be safe in your understanding, or just the first £85k?

Thrugelmir

valiant24 said:

Linton said:

valiant24 said:

Linton said:

It is not true that if ii or AJBell went bust all but £85K of your cash may be lost.  ii or AJBell wont be holding your money and if they did it would be ringfenced.

I would be happy to be corrected, but I don't believe that that is true.   Investments through a platform are (or should be) ring-fenced, but I do not believe that to be the case with cash held within a SIPP/ISA/dealing account.

You are confusing two different issues.  The concern is the bank where the platform deposits the cash goes bust, not the platform.  

OK, thanks.   So if whichever bank AJBell uses went bust while I had £185k of cash within my SIPP, would entire £185k be safe in your understanding, or just the first £85k?

Why do believe that a major UK bank is likely to go bust. 

Linton

valiant24 said:

Linton said:

valiant24 said:

Linton said:

It is not true that if ii or AJBell went bust all but £85K of your cash may be lost.  ii or AJBell wont be holding your money and if they did it would be ringfenced.

I would be happy to be corrected, but I don't believe that that is true.   Investments through a platform are (or should be) ring-fenced, but I do not believe that to be the case with cash held within a SIPP/ISA/dealing account.

You are confusing two different issues.  The concern is the bank where the platform deposits the cash goes bust, not the platform.  

OK, thanks.   So if whichever bank AJBell uses went bust while I had £185k of cash within my SIPP, would entire £185k be safe in your understanding, or just the first £85k?

I suggest your read https://www.youinvest.co.uk/faq/how-safe-are-my-investments-you.   For more than this you would need to talk to AJBell.

BrockStoker

Hedge your bets.

The best strategy IMHO, and it's one that many here including myself use, is simply to hold some cash (usually between 10-20%), and when the crash comes, fill your boots.

wmb194

Outside a Sipp, the easiest, relatively low-effort place to park hundreds of thousands of pounds in a single account is with NS&I i.e. pseudo-gilts. Otherwise just spread it across multiple ordinary institutions.
Brokers will normally split ring-fenced client funds between three of four banks but won't always tell you which ones however Barclays Smart Investor says it will deposit all of your funds with Barclays if you use the "Investment Saver" cash sweep facility alongside side it.
https://www.barclays.co.uk/smart-investor/important-information/legal-information/

Albermarle

valiant24 said:

Linton said:

valiant24 said:

Linton said:

It is not true that if ii or AJBell went bust all but £85K of your cash may be lost.  ii or AJBell wont be holding your money and if they did it would be ringfenced.

I would be happy to be corrected, but I don't believe that that is true.   Investments through a platform are (or should be) ring-fenced, but I do not believe that to be the case with cash held within a SIPP/ISA/dealing account.

You are confusing two different issues.  The concern is the bank where the platform deposits the cash goes bust, not the platform.  

OK, thanks.   So if whichever bank AJBell uses went bust while I had £185k of cash within my SIPP, would entire £185k be safe in your understanding, or just the first £85k?

If the platform split your £185K across three banks ( with different banking licences) then you would be fully covered. Unless you already had more money in one of those banks already, as your total personal compensation limit for each bank would be £85K.
Different platforms have different ways of how they split cash holdings with different banks though.

masonic

valiant24 said:

Linton said:

valiant24 said:

Linton said:

It is not true that if ii or AJBell went bust all but £85K of your cash may be lost.  ii or AJBell wont be holding your money and if they did it would be ringfenced.

I would be happy to be corrected, but I don't believe that that is true.   Investments through a platform are (or should be) ring-fenced, but I do not believe that to be the case with cash held within a SIPP/ISA/dealing account.

You are confusing two different issues.  The concern is the bank where the platform deposits the cash goes bust, not the platform.  

OK, thanks.   So if whichever bank AJBell uses went bust while I had £185k of cash within my SIPP, would entire £185k be safe in your understanding, or just the first £85k?

Cash is ring-fenced by AJ Bell, but it is not ring-fenced by the banks that are used to hold it. It depends how it is spread between banks as to how much protection you would get. You would need to check this with AJ Bell. It would be better invested in money market funds, short dated gilts, etc than left in cash. There are other reasons why you wouldn't want to hold cash in a SIPP.