Stephen Bland's High Yield Portfolio

7th Feb '17 by Ken Lowes

14 comments 8383 reads

Yesterday I was surfing the discussion pages when I came across Stephen Bland’s blog on his High Risk Portfolio, I was incensed because he was clearly promoting his HYP subscription newsletter and made some remark which I believed to be less than reasonable about annuities. This can be found at the end of the blog. The reply didn’t help matters and I was about to take up the challenge when I reread his reply and realised he was quite correct in stating the following “It seems to me you have jumped to negative conclusions without having bothered first to take the trouble to discover what I'm about.”
Within the body of Stephens introduction there is a link to his original six articles in 2013 which you will find here http://www.stockopedia.com/content/high-yield-port.... I took the time to read them and to be frank they were almost without exception excellent, well written and informative. More importantly they were honest, warts and all. So I apologise for suggesting that he showed a degree of ignorance when considering annuities and highly recommend that those who are interested in gaining an advantage in the world of investment and haven’t read those six concise and informative chapters ought to do so. Sorry Stephen sometimes I get it wrong.

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potter12

7th Feb '17

Ken,

I guess you weren't reading Stephen's posts on the Motley Fool around 2000. His ideas were most helpful to diy investors then. Some of us still have our HYP portfolios and they have done well since 2000.

I'm one of those who chose not to start an annuity and I still have the capital in my SIPP. It is paying an excellent yield which has increased almost every year, and I take out as income. The capital value is much higher than at the start (more than doubled since 2001) and as a bonus, it will be an IHT free part of my estate in (hopefully) many years to come, assuming pension legislation doesn't change too much.

Very glad you did the research - and wrote the positive comments above.

gus 1065

Top marks Ken for holding your hand up and admitting your error. Never easy to do in a public forum like like this so kudos to you (and Stephen for his original threads).

Best,

Gus.

Ken Lowes

Thanks. I wasn't a fan of SIPP's in the early days for many reasons but with interest rates as they are and have been for some time it is the right way to go. Not sure about the IHT point you might find this link useful http://citywire.co.uk/money/pensions-beware-the-traps-at-age-75/a768810.

Damian Cannon

Hi Ken,

Full marks for going back to the source material and admitting your mistake in public. Like others I've followed Stephen for many years and have a HYP running (which is still in the construction phase). Curiously enough it's where I've stepped away from some of his suggestions (trying smaller companies or those with short track-records) that I've had the most trouble while sticking to the rules has been pretty successful overall.

Also that's an interesting link although the full-stop at the end means that it doesn't quite work - this should do the trick: http://citywire.co.uk/money/pensions-beware-the-traps-at-age-75/a768810

Damian

mercury61

the link doesn't seem to work?

Ok now thanks Damian

'' those six concise and informative chapters ought to do so'' where are they please?

Dear Ken and Damian

Your link is to an article in 2014 before the latest changes to SIPP legislation and is therefore misleading.

Better to look at something like:

https://www.youinvest.co.uk › Pensions and Retirement › Accessing your pension
One of the great tax advantages of a Self-invested personal pension or SIPP is that they allow you to pass on your pension to your beneficiaries on your death. Your beneficiaries can normally choose to take the pension fund as a lump sum or leave it invested in a SIPP.

This sums up the current legislation. Although, as I said above, the regulations could change in the future.

regards

Something rings a distant bell re 75, if it is important best check with your advisor. I have been out of the business for fifteen years.

Go to Discussions - find High Yield Portfolio's by Stephen Bland October 2016, end of second paragraph there is a link
Ken

Many Thanks!

8th Feb '17

Thanks Mercury
I have included the link in the main text to make it easier.

I went to the source, after all I created it--- Upon death after age 75 the proceeds in total will pass to the nominated beneficiaries, it is very important that beneficiaries are nominated, they can then continue to draw an income from the SIPP which will be added to their income and taxed at the resultant rate. So if they are currently basic rate tax payers and decide to take all the capital it will be taxed a the 45% rate assuming the capital is substantial. Conversely if no beneficiary is nominated it will go into the estate and be taxed at the 40% IHT rate. So planning is required regarding beneficiaries, the size of the fund, the size of the estate and the decision to nominate.

Dear Ken

So worth your looking at Stephen Bland's original articles and checking the rules on SIPPs!

Thank you for confirming my post 1. Obviously it is important to nominate beneficiaries. You will see that there is a case at the High Court today which confirms this, especially for those who are not married.

Your journey over the last couple of days shows how important it is to take qualified advice on something as complicated as pensions.

Stephen Bland's High Yield Portfolio

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Ken Lowes

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