Rachel Reeves says higher taxes on wealthy ‘part of the story’ for November budget

[JohnD]

Educate yourself

No need.

I already know the difference.

And I know that Bonds pay interest, not dividends

And I know that your claim

Junk bonds pay dividends silly.

Was, and is, false.

 

[motorbiking]

And more reading for you.

KEY TAKEAWAYS
Bond ETFs offer investors passive exposure to fixed-income securities like corporate bonds and Treasuries.
These ETFs trade on major exchanges, providing liquidity and transparency similar to stocks.
Bond ETFs can be more liquid and cost-effective than traditional bond mutual funds.
They pay interest through monthly dividends, though the tax efficiency of capital gains is limited in bond returns.
Bond ETFs may not mature, so principal repayment is not guaranteed, especially when interest rates rise.

Understanding Bond ETFs: Definition, Types, and Investment Methods

Discover what Bond ETFs are, explore their types, and learn how to invest in them. Bond ETFs offer liquidity, transparency, and diversify your fixed income investments.

www.investopedia.com

 

[Murdochcat]

The key takeaway is that JohnD is as usual taking the high ground and talking nonsense and not answering direct questions

 

[motorbiking]

There is no high ground for him to take.

I have investments in junk bonds and receive dividends. Apparently that’s impossible.

 

[JohnD]

Junk bonds pay dividends silly.

Wrong.

An ETF can pay dividends, but an ETF is not a bond, and a bond is not an ETF.

I gather you're not only pretending you didn't mean what you said

Junk bonds pay dividends silly.

You're trying to make out you didn't say it.

Junk bonds pay dividends silly.

No, they don't.

 

[Justin Passing]

As I understand it, the term "Bond" is used for things which aren't always bonds in the way JD means it.
If it's called a bond, it's a bond.
"True" bonds don't pay Dividends, those are a shares thing, (and the income is taxed as interest) even if the bond etf calls the returns dividends which some do.
So the income from a Bond ETF is interest, unless it's not really a bond etf (collection of bonds).
A Convertible Bond pays interest, unless it's converted into shares. I daresay there are some hybrids.
Any capital gain when you sell it, is subject to CGT.

There may well be nuances I don't know about because I always use the Acc version of an instrument, not the Dist or Int ones.
The Acc(umulation) versions reinvest the dividend, so it goes as a capital gain , -> cgt not dividend tax.
So far, I've had enough coming in from pensions. That may change.

__________

The Motabillity scheme has a number of ah-buts which you don't see quoted.
- HMG would get a discount.
- The car models available are often the ones which don't sell well.
- One of the "best" is a Mazda PHEV SUV, 2.5l engine, 323bhp so it's a bit quick. Apparently its gearbox is a bad and the thing's a dog.
- Some of them are no easier to get on motability than for someone paying.
If you compare with lease charges it can be cheaper to do that.
- Insurance is much higher if you're younger of course, which would be a large issue for the most expensive cars.
It does not jump up when you retire or start drawing a pension, but it goes up a little when you get very old. Companies vary.
Yes it costs you the higher mobility PIP (eg) payment 70 a week, 12k over 3 years. For all but the more basic cars you pay on top, up to £8000 iirc for the three year period you have the vehicle. So that's up to £20k all up.
For many, it would be better to buy a 2 year old model, say. Deprecation from new, and that.
Quite a lot of people who have a motability car for 3 years, buy it, then keep it for a few years after.
PIP payments are not indexed the way pensions are.

If you only use the PIP payment, you can have say a ford Puma (smaller engine), but if you're under 25 you can't, you can have a Renault Clio, say.
A VW Golf 1.5 is £2300 , a hybrid £6k.
If you want to be able to put a folding wheelchair in the boot you'd lilkely be looking at a cheap make for it to be big enough.

Seems I was wrong about say a partner using the car for entirely their own purposes - yes they can, once added to the insurance.
Odd that, if you get free car tax on your own car, they can't.

 

[motorbiking]

As I understand it, the term "Bond" is used for things which aren't always bonds in the way JD means it.
If it's called a bond, it's a bond.
"True" bonds don't pay Dividends, those are a shares thing, (and the income is taxed as interest) even if the bond etf calls the returns dividends which some do.
So the income from a Bond ETF is interest, unless it's not really a bond etf (collection of bonds).
A Convertible Bond pays interest, unless it's converted into shares. I daresay there are some hybrids.
Any capital gain when you sell it, is subject to CGT.

There may well be nuances I don't know about because I always use the Acc version of an instrument, not the Dist or Int ones.
The Acc(umulation) versions reinvest the dividend, so it goes as a capital gain , -> cgt not dividend tax.
So far, I've had enough coming in from pensions. That may change.

Bond Funds such as ETF Bonds are usually a collection of Bonds, that is really the point. You are investing in a diversified fund. e.g a junk Bond fund.

They pay dividends quite probably for the tax benefits. I originally invested in junk bonds as a way of diversifying, but they aren’t tax efficient now given the dividend allowance is so low. If you find any that convert this to capital growth, let me know as I want to maximise my deferred income.

 

[JohnD]

As I understand it, the term "Bond" is used for things which aren't always bonds in the way JD means it.

When I say "bonds" I mean bonds.