Stop paying tax and retire at 56?

Steve182

Alexland said:

Steve182 said:

Given that it sold out in less than 24 hours there clearly is an expectation that it will continue to outperform.... 

With what's going on in the broader markets and economy at the moment I'm starting to see recent high performance as a sign of potential underperformance going forwards which is pushing me towards the more diversified mid-performers. My VCT purchase this year has been testing the water and I'm not yet sure I want to go all the way into building a 5 year 'VCT ladder' so I will judge what to do each tax year on the opportunity at the time however this month my VCT sell price has gone up closer to my buy price compared to my various global tracker collection down nearly 10% so I guess it will provide both income and portfolio diversification benefits.

The way I see it, with a £7K net/tax paid investment giving you £10K in NAV shares, even a modest 4% divi gives 5.7% tax free income indefinitely based on the net purchase price. I think most VCTs achieve better than 4%.  As I recall, Northern, my largest VCT holding includes a fairly large % of reliable dividend paying management buyouts which have been held from before a rule change prohibiting this. Northern's SP appears to have been unaffected by recent events but regardless, but with the tax free divi's I'm receiving (plus a special last year of about 10% as I recall)  I've little concern about SP and could just hold them forever.

Albermarle

Thoughts/comments/sanity check of my plan would be greatly appreciated

Rather than retirement , it all looks like hard work !