10k for isa what would you do

with another disclaimer that these are my personal opinions :slight_smile:

The thing about a ā€œbubbleā€ is, you canā€™t objectively measure if you are in one or not. But there are some companies definitely valued more than what they can ever capitalise in the next 10 years. So I am 40% pessimistic about current market condition.
For example:

  • Iā€™ve sold 100% of my TSLA position and reduced my Apple position to 25% of what I held.
  • I havenā€™t bought MSFT, NVDA, amazon or alphabet this year, but I believe these companies can hold if not improve
  • I tentatively buy over valued things like AMD, NVTA and quite a few chinese stocks in small amounts thinking despite being over valued they still have headroom to grow.

If you ask someone like @Vedran though, I think he is a lot more pessimistic than myself. But again act according to your pain threshold.

edit: another disclaimer, I have 0 money left to invest until the end of this financial year due to consuming all my tax free wrappers so technically not buying anything at the moment.

I saw you mention this on another post, about your ISA and SIPP.
But surely you can still invest outside these products? (Assuming that you have more cash). Youā€™ll just have to pay taxes on any profits, but that is better than getting 0% in a bank account.

For example, when you invest in options I guess that it is not in one of the wrappers (though I think some SIPP providers allow for options, I donā€™t think ISA providers doā€¦).

If I were able to consistently double the tax free allowances, thisā€™d make sense. But that is 40+20=Ā£60K per year tax free. This year was a bit of an anomaly due unprecedented option income

So Iā€™m waiting to see if I can 100% use this allowance in FY2021-22, thatā€™ll mean I can hold a security outside these wrappers over a year, then I can use CGT allowance or pay CGT. I am at the moment, partially thanks to options, paying income tax in ā€œadditional tax bandā€ which means 45% of all earnings go into tax, which hurts :panda_face:

I also keep a strictly ringfenced amount of money in my option account(and whenever Iā€™m $9999 over that amount I withdraw $9999), temptation and risk there is too much :slight_smile:

edit: btw for those who are not aware, you can backdate your SIPP allowance for 3 years if youā€™ve contributed to any sipp during those 3 years.
i.e if you have contributed 10K in 2018 and 10K in 2019, you can use the remaining 30K+30K in 2020 and can contribute a total sum of 100K in 2020 (max limited to your gross earnings in 2020)

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This is also valid for direct contribution work pensions right?

I am gonno tentatively say yes, because wording on HMRC is although generic, not clear. If you are planning to use this allowance without having a sipp, I recommend emailing HMRC for clarification.

You cannot carry forward unused allowances from any tax year where you were not a member of at least one UK registered pension scheme, or a qualifying overseas pension scheme.

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All into Microsoft and check back in 20-35 years

All in Tesla.

Past performance is a guarantee of future performance?

Right?