Collecting precious metals for what?

[MickB]

We're all here as we've decided to buy precious metals for our own reasons. Mine started out of curiosity back in 2013 when I bought a 1oz silver Britannia and it grew from there. I then bought my first gold from a forum member, my first piece ever in 2014. I looked at getting a stack to back up a mortgage shortfall if it ever happened but covered that in another way.

I still enjoy buying, bought a 1982 half sovereign today, better than saving in a bank in my opinion but do have cash to fall back on. My pension pot will hopefully be ok for when I retire in just under 20 years time but my stack will probably be still there in my old age. I will call it a successful investment if I don't touch it and can leave it to my granddaughters when I pass away in the distant future, if God spares me. Now I have thought about cashing it in when I retire and enjoy life with it but I would more than likely not want to squander it when the next generation could do with a hand. I'm not sure when to teach them or tell them about precious metals as I wouldn't want them to tell anyone what they're going to get. They tell the wrong people, they become targets. Should I cash out for them at a certain time or hope they'd be sensible in keeping quiet?

I don't want them left with a burden but I don't want them missing out on the right price. I put money away into their bank accounts so they will have something when they reach 18, as long as they don't have a scummy boyfriend and have a good education behind themselves.

[Nick1368]

Vey thoughtful of you , I am not a parent so I can't give you any advice on this but I  envy your kids .

[MickB]

11 minutes ago, Nick1368 said:

Vey thoughtful of you , I am not a parent so I can't give you any advice on this but I  envy your kids .

Sod the kids, it's for the granddaughters

[AlphaBeast]

I'd rather know, as there are things I know my father has for me and my two sisters, which we don't know about.

I rather know how to deal with certain situations, whilst my father is around and has the knowledge - this saves me time as well as making any mistakes. 

But also, this is dependance on how much you trust your children too; dividing 'equally' amongst them saves any issues - hopefully he says.

Besides, a family is stronger together, stronger bond. The same can be said of people too; they just don't realise it.

[MickB]

Probably having an account they can't touch for a while is the best option for peace of mind but I still have my precious metals for them. If I let them know too early @AlphaBeast then they might get excited and tell people. I haven't told my lad and his missus what I've got lined up for our granddaughters, too risky. They don't know what I collect, thankfully.

[stackspot]

Assuming you have a will (you have to have a will)

I'd keep it tight. As soon as someone has to have some help you let them know you can provide.

Don't tell them it's gold (people get funny ideas) provide funds

Don't tell them there is more, it's still there for them

Less said the better

 

[MickB]

It's quite odd/funny that I can only tell my wife and the forum here of what I have in precious metals but can't trust close family that much. My dad knows I have a few pieces as I gave him a sovereign in the past but he never mentioned it since. Now if I had a stash of beer he'd tell everyone

[Pete]

If you are thinking about your grandchildren’s future, even if only a day old, then why not open a low cost on-line SIPP.

Easy to do and you can today invest £2,880 each tax year per child AND the government tops this up to £3,600.
Show me a product that guarantees this instant return.

Either keep in cash ( no growth and inflation to erode just like in the bank), mix it up a bit with tracker funds, bonds or managed funds and by the time they reach 50 the pot could very well exceed Del Boy’s million pounds. Also prevents them squandering the pot on their 18th birthday.

 

[allthatglitters]

You can still teach them about precious metals without revealing your full stack. I have a single silver Brit I let my 3 year old play with and it's the only one he thinks I have, he always wants to keep it safe and loves it!

A few times I've given him the choice of a £20 note or the silver Brit and he goes for the Brit every time 😂. To be honest I don't really know if I'm teaching him anything or if he's learning anything but I'm also stacking for him so I'd at least want him to be familiar with what it is as he grows.

Lucky grandkids!

[MickB]

56 minutes ago, Pete said:

If you are thinking about your grandchildren’s future, even if only a day old, then why not open a low cost on-line SIPP.

Easy to do and you can today invest £2,880 each tax year per child AND the government tops this up to £3,600.
Show me a product that guarantees this instant return.

Either keep in cash ( no growth and inflation to erode just like in the bank), mix it up a bit with tracker funds, bonds or managed funds and by the time they reach 50 the pot could very well exceed Del Boy’s million pounds. Also prevents them squandering the pot on their 18th birthday.

 

Great advice there @Pete, thanks. Although I still have my stash for them, I can't predict the future as to my job and health, so hopefully it will be there for them at the end instead of me having to fall back on it. I want to get them moneywise at an early age so they don't end up with nothing.

When I was a kid and had a paper round I managed to save my first £100 in a bank account. I was so pleased until my parents saw my savings book and demanded that I hand it over to them as apparently kids shouldn't have that sort of money. I never got back into saving money for many years as they put me off after they spent my hard earned money on going down the pub and buying food with the remains of it. We never had much but weren't poor. I put £50 every 4 weeks each into my granddaughters accounts, once my mortgage is paid then it will be doubled for them. Not much but more than what they're getting from anyone else. The precious metals will be a nice bonus for them. 

As I enjoy collecting then I'll carry on doing so, the latest telly or stereo's don't do it for me in the way of feeling as I've got something of value. They'll be old hat and not worth anything of value in years to come. The only thing they won't get is my port collection that I'm starting to build up slowly. I want to drink them when I retire.

[MickB]

16 minutes ago, allthatglitters said:

You can still teach them about precious metals without revealing your full stack. I have a single silver Brit I let my 3 year old play with and it's the only one he thinks I have, he always wants to keep it safe and loves it!

A few times I've given him the choice of a £20 note or the silver Brit and he goes for the Brit every time 😂. To be honest I don't really know if I'm teaching him anything or if he's learning anything but I'm also stacking for him so I'd at least want him to be familiar with what it is as he grows.

Lucky grandkids!

If there was a solid silver Peppa Pig then my eldest granddaughter would get the idea of precious metals in an instant!

It's good that you're teaching your kid at an early age, he'll take it on board for sure. Wise not to let him know there's more.

[272]

3 hours ago, MickB said:

Great advice there @Pete, thanks. Although I still have my stash for them, I can't predict the future as to my job and health, so hopefully it will be there for them at the end instead of me having to fall back on it. I want to get them moneywise at an early age so they don't end up with nothing.

When I was a kid and had a paper round I managed to save my first £100 in a bank account. I was so pleased until my parents saw my savings book and demanded that I hand it over to them as apparently kids shouldn't have that sort of money. I never got back into saving money for many years as they put me off after they spent my hard earned money on going down the pub and buying food with the remains of it. We never had much but weren't poor. I put £50 every 4 weeks each into my granddaughters accounts, once my mortgage is paid then it will be doubled for them. Not much but more than what they're getting from anyone else. The precious metals will be a nice bonus for them. 

As I enjoy collecting then I'll carry on doing so, the latest telly or stereo's don't do it for me in the way of feeling as I've got something of value. They'll be old hat and not worth anything of value in years to come. The only thing they won't get is my port collection that I'm starting to build up slowly. I want to drink them when I retire.

If you have a will, next time you get it updated why dont you explore including a clause to set up a Immediate Post Death Interest (IPDI) trust? An IPDI can be quite flexible, so I believe you can suggest an age where the property should be given to your grandchildren but allowing the trustees flexibility to do what they see fit, taking the child’s maturity into account.

The downside of that flexibility is that the transfer of any assets out of this type of trust is a disposal for Capital Gains tax purposes without the relief provided by some other types of trust. The income from the trust property is also taxed as if it is the child's.

Obviously you would need trustees you could rely on too.

As a disclaimer I'm not in any position to give legal advice (just happened to be sorting out my family mirror wills this week), so would strongly suggest you research this yourself or speak to a solicitor.

[Pete]

Inheritance tax is for most a potential time bomb especially in areas where property prices have gone astronomic.

The really wealthy can pay tens of thousands to tax advisors for a carefully worded piece of paper that shields their estate from paying tax - seems pretty unfair - whereas most of us who can be hit by inheritance tax will pay unless you spend all your money before you die and call upon the state to take care of you in later life.

Save for old age or your family and you can get screwed.
P!ss your wealth up the wall, take round the world luxury cruises, indulge in fine wines etc. and your neighbours will pay.

[sovereignsteve]

22 hours ago, MickB said:

Sod the kids, it's for the granddaughters

Oh sorry, I thought you said you'd sold the kids!

There have been many times I have wished I could have done that but they've turned out all right.

I am currently going through similar thought patterns myself; my father having recently died and I'm knocking on a bit. Children doing OK but grandkids' future is a real concern.

The problem with making fancy inheritance plans these days is that the chances of things staying as they are in 20 years or more are virtually nil.

[Stacktastic]

I’m collecting metals with the kids (4 & 5) and don’t really keep it a secret from anyone that I trade PM’s. Maybe I should change that? I want to but them coins regularly and keep it separate. I have a 10oz Griffin (he is called edward! Born 2017) and a 2015 kook for thier 18th and 21st and buy my family silver for birthdays. 
 

what I am doing however is cultivating a respect for money and teaching them how to make and invest it, Not to mention a good work ethic! They made cakes the other day and sold them. Myself and the eldest worked out the cost, extracted the profit and they each choose a toy on amazon. 😂

just reading a Tim ferris book, tools of titans and one of the continuous dads had a sweet and sour intern aged from 12. He would work at one great job for half the summer (ie investment banking clerk) and then a bad one (sewage machinery cleaning) and his dad told the owner to give him hell lol

I will try and set up a trust or company of some sort. I won’t give them anything in one lump. I got 18k at 26 and went and bought a sports car, although I bought a house, business and invested in a 6 percent isa! Remember those rates!!! 

[RacerCool]

On 02/12/2020 at 10:32, MickB said:

We're all here as we've decided to buy precious metals for our own reasons. Mine started out of curiosity back in 2013 when I bought a 1oz silver Britannia and it grew from there. I then bought my first gold from a forum member, my first piece ever in 2014. I looked at getting a stack to back up a mortgage shortfall if it ever happened but covered that in another way.

I still enjoy buying, bought a 1982 half sovereign today, better than saving in a bank in my opinion but do have cash to fall back on. My pension pot will hopefully be ok for when I retire in just under 20 years time but my stack will probably be still there in my old age. I will call it a successful investment if I don't touch it and can leave it to my granddaughters when I pass away in the distant future, if God spares me. Now I have thought about cashing it in when I retire and enjoy life with it but I would more than likely not want to squander it when the next generation could do with a hand. I'm not sure when to teach them or tell them about precious metals as I wouldn't want them to tell anyone what they're going to get. They tell the wrong people, they become targets. Should I cash out for them at a certain time or hope they'd be sensible in keeping quiet?

I don't want them left with a burden but I don't want them missing out on the right price. I put money away into their bank accounts so they will have something when they reach 18, as long as they don't have a scummy boyfriend and have a good education behind themselves.

You interested in adopting any adult children?  😰

[47Ag79Au78Pt]

On 02/12/2020 at 19:21, Pete said:

If you are thinking about your grandchildren’s future, even if only a day old, then why not open a low cost on-line SIPP.

Easy to do and you can today invest £2,880 each tax year per child AND the government tops this up to £3,600.
Show me a product that guarantees this instant return.

Either keep in cash ( no growth and inflation to erode just like in the bank), mix it up a bit with tracker funds, bonds or managed funds and by the time they reach 50 the pot could very well exceed Del Boy’s million pounds. Also prevents them squandering the pot on their 18th birthday.

 

Damn Pete!!  That’s good advice. My IFA keeps on ranting about managed fund ISA,s and AVC pensions as the most efficient but safe long term strategy. He might be right, but I get real pleasure finding a quiet moment by myself to go fetch the stack and just enjoy each piece. It may not be the most “prudent” hedge against inflation or long-term savings vehicle... but it’s deeply satisfying!!👍🏽

Still, your point is a good one; portfolio diversification!