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Savings and Investments thread

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  • Huskaris said:
    Just opened an ISA with InvestEngine. 

    Seems quite good, can't buy or sell equities, it's all ETFs. Pretty good app and no real costs from what I can see. 

    Created my first portfolio, and the thing I like the most is that they tell you what regions, sectors and individual equities you are invested in and to what proportion. 

    You could see for example if by buying too many ETFs with crossovers in them that you were overexposed to, let's say Microsoft/Apple etc, or that you had an overexposure to a specific nation/industry. 
    A lot of my SIPP is in ETF's, cost effective way of investing in my view.

    My largest holding is in Vanguards S&P500 ETF, ongoing charge of 0.07%.

    But more importantly, I'm shocked and in horror to know you've taken until February in the tax year to open an ISA  :D
  • Rob7Lee said:
    Huskaris said:
    Just opened an ISA with InvestEngine. 

    Seems quite good, can't buy or sell equities, it's all ETFs. Pretty good app and no real costs from what I can see. 

    Created my first portfolio, and the thing I like the most is that they tell you what regions, sectors and individual equities you are invested in and to what proportion. 

    You could see for example if by buying too many ETFs with crossovers in them that you were overexposed to, let's say Microsoft/Apple etc, or that you had an overexposure to a specific nation/industry. 
    A lot of my SIPP is in ETF's, cost effective way of investing in my view.

    My largest holding is in Vanguards S&P500 ETF, ongoing charge of 0.07%.

    But more importantly, I'm shocked and in horror to know you've taken until February in the tax year to open an ISA  :D

    Better than waiting until 6 April :)
  • Or if he had his money tied up somewhere else and only got it to hand to use in an ISA.
  • edited February 12
    mendonca said:
    Or if he had his money tied up somewhere else and only got it to hand to use in an ISA.
    Basically this! Had all the cash tied up, but just maxed mine and my wife's ISA. 

    Premium bonds coming at the end of the month!

    Next tax year, I am thinking about taking cash out of premium bonds and maxing out our ISAs straight away and gradually adding back to premium bonds as and when I can...
  • edited February 12
    Rob7Lee said:
    Huskaris said:
    Just opened an ISA with InvestEngine. 

    Seems quite good, can't buy or sell equities, it's all ETFs. Pretty good app and no real costs from what I can see. 

    Created my first portfolio, and the thing I like the most is that they tell you what regions, sectors and individual equities you are invested in and to what proportion. 

    You could see for example if by buying too many ETFs with crossovers in them that you were overexposed to, let's say Microsoft/Apple etc, or that you had an overexposure to a specific nation/industry. 
    A lot of my SIPP is in ETF's, cost effective way of investing in my view.

    My largest holding is in Vanguards S&P500 ETF, ongoing charge of 0.07%.

    But more importantly, I'm shocked and in horror to know you've taken until February in the tax year to open an ISA  :D
    Yeah ETFs are the best, plus the wife can only invest in ETFs due to compliance rules at work (she works at an investment bank, back office though!).

    I went through SPDR's S&P 500 tracker.... 0.03%  ;)

  • Huskaris said:
    Just opened an ISA with InvestEngine. 

    Seems quite good, can't buy or sell equities, it's all ETFs. Pretty good app and no real costs from what I can see. 

    Created my first portfolio, and the thing I like the most is that they tell you what regions, sectors and individual equities you are invested in and to what proportion. 

    You could see for example if by buying too many ETFs with crossovers in them that you were overexposed to, let's say Microsoft/Apple etc, or that you had an overexposure to a specific nation/industry. 
    Hate to say it but most platforms do that. I have clients on Fidelity, Aegon & Quilter and they all produce client reports that show asset split, and breakdown the portfolios showing top 10 holdings & any crossovers. 
  • Came on here to say that lots of lenders are raising their rates. Just today I've had Halifax, Nationwide & Accord all send me emails saying rates increasing as from tomorrow. Average increase is around 0.2% but some going up by 0.35%-0.4%.


  • Huskaris said:
    Just opened an ISA with InvestEngine. 

    Seems quite good, can't buy or sell equities, it's all ETFs. Pretty good app and no real costs from what I can see. 

    Created my first portfolio, and the thing I like the most is that they tell you what regions, sectors and individual equities you are invested in and to what proportion. 

    You could see for example if by buying too many ETFs with crossovers in them that you were overexposed to, let's say Microsoft/Apple etc, or that you had an overexposure to a specific nation/industry. 
    Hate to say it but most platforms do that. I have clients on Fidelity, Aegon & Quilter and they all produce client reports that show asset split, and breakdown the portfolios showing top 10 holdings & any crossovers. 
    Ah that's good then! I last invested with Vanguard and didn't have that sort of stuff (from memory). It's really good to have that level of info!
  • Huskaris said:
    mendonca said:
    Or if he had his money tied up somewhere else and only got it to hand to use in an ISA.
    Basically this! Had all the cash tied up, but just maxed mine and my wife's ISA. 

    Premium bonds coming at the end of the month!

    Next tax year, I am thinking about taking cash out of premium bonds and maxing out our ISAs straight away and gradually adding back to premium bonds as and when I can...
    You're forgiven and allowed back on the board then  :D

    I've tried to no avail to get my wife to cash in some premium bonds, not helped when my daughter won £5k, it's now a competition  :/
  • Everyone takes a different approach. I live comfortably off the rents and not needed to touch the pension. Only issue is the residential houses have been owned for some years. They are not in a Limited Company or in a trust so CGT is an issue if I sell. 
    Please tell me that you've at least taken the  Tax-free element from your pension ?  
    Golfie, I haven't taken most of my tax-free element from my pension. Reason is I was advised to live off my other income and savings before drawing this down. Benefit being that it would be protected from inheritance tax whilst in a pension wrapper. 
    Am I missing something stupid?



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  • redman said:
    Everyone takes a different approach. I live comfortably off the rents and not needed to touch the pension. Only issue is the residential houses have been owned for some years. They are not in a Limited Company or in a trust so CGT is an issue if I sell. 
    Please tell me that you've at least taken the  Tax-free element from your pension ?  
    Golfie, I haven't taken most of my tax-free element from my pension. Reason is I was advised to live off my other income and savings before drawing this down. Benefit being that it would be protected from inheritance tax whilst in a pension wrapper. 
    Am I missing something stupid?



    Was told something similar 
  • edited February 13
    redman said:
    Everyone takes a different approach. I live comfortably off the rents and not needed to touch the pension. Only issue is the residential houses have been owned for some years. They are not in a Limited Company or in a trust so CGT is an issue if I sell. 
    Please tell me that you've at least taken the  Tax-free element from your pension ?  
    Golfie, I haven't taken most of my tax-free element from my pension. Reason is I was advised to live off my other income and savings before drawing this down. Benefit being that it would be protected from inheritance tax whilst in a pension wrapper
    Am I missing something stupid?



    If you die before 75 that is correct, although there are some caveats on LTA but who knows if that'll apply in the future, if over 75 income tax applies, so any large amount drawn by the beneficiaries will likely incur 45% tax.

    So it'll depend on your personal circumstances and theirs, and assuming the pot is a DC pot and in flexible drawdown and how large it is.
  • Rob7Lee said:
    redman said:
    Everyone takes a different approach. I live comfortably off the rents and not needed to touch the pension. Only issue is the residential houses have been owned for some years. They are not in a Limited Company or in a trust so CGT is an issue if I sell. 
    Please tell me that you've at least taken the  Tax-free element from your pension ?  
    Golfie, I haven't taken most of my tax-free element from my pension. Reason is I was advised to live off my other income and savings before drawing this down. Benefit being that it would be protected from inheritance tax whilst in a pension wrapper
    Am I missing something stupid?



    If you die before 75 that is correct, although there are some caveats on LTA but who knows if that'll apply in the future, if over 75 income tax applies, so any large amount drawn by the beneficiaries will likely incur 45% tax.

    So it'll depend on your personal circumstances and theirs, and assuming the pot is a DC pot and in flexible drawdown and how large it is.
    As always, Financial Advice is personal to you. What might be right for one person might not be for another. 

    Yes, money in a pension is more IHT efficient, but that is all depending on your overall IHT position. If you have property, and leaving your Estate to your children, then you will have an IHT allowance of £500k. If you are married & your Estate passes directly to your spouse then there is no IHT to pay, and when your spouse dies their IHT allowance will be 2x£500k (assuming no gifts etc etc).

    Again, it all depends on what is more important - more tax efficient income now or leaving more tax -efficient lump sums to your kids. 
  • Rob7Lee said:
    redman said:
    Everyone takes a different approach. I live comfortably off the rents and not needed to touch the pension. Only issue is the residential houses have been owned for some years. They are not in a Limited Company or in a trust so CGT is an issue if I sell. 
    Please tell me that you've at least taken the  Tax-free element from your pension ?  
    Golfie, I haven't taken most of my tax-free element from my pension. Reason is I was advised to live off my other income and savings before drawing this down. Benefit being that it would be protected from inheritance tax whilst in a pension wrapper
    Am I missing something stupid?



    If you die before 75 that is correct, although there are some caveats on LTA but who knows if that'll apply in the future, if over 75 income tax applies, so any large amount drawn by the beneficiaries will likely incur 45% tax.

    So it'll depend on your personal circumstances and theirs, and assuming the pot is a DC pot and in flexible drawdown and how large it is.
    As always, Financial Advice is personal to you. What might be right for one person might not be for another. 

    Yes, money in a pension is more IHT efficient, but that is all depending on your overall IHT position. If you have property, and leaving your Estate to your children, then you will have an IHT allowance of £500k. If you are married & your Estate passes directly to your spouse then there is no IHT to pay, and when your spouse dies their IHT allowance will be 2x£500k (assuming no gifts etc etc).

    Again, it all depends on what is more important - more tax efficient income now or leaving more tax -efficient lump sums to your kids. 
    Isn’t it better to leave your “half” of your home to your kids, so if the remaining parent has to go into care, then the kids have protected their share?
  • Rob7Lee said:
    redman said:
    Everyone takes a different approach. I live comfortably off the rents and not needed to touch the pension. Only issue is the residential houses have been owned for some years. They are not in a Limited Company or in a trust so CGT is an issue if I sell. 
    Please tell me that you've at least taken the  Tax-free element from your pension ?  
    Golfie, I haven't taken most of my tax-free element from my pension. Reason is I was advised to live off my other income and savings before drawing this down. Benefit being that it would be protected from inheritance tax whilst in a pension wrapper
    Am I missing something stupid?



    If you die before 75 that is correct, although there are some caveats on LTA but who knows if that'll apply in the future, if over 75 income tax applies, so any large amount drawn by the beneficiaries will likely incur 45% tax.

    So it'll depend on your personal circumstances and theirs, and assuming the pot is a DC pot and in flexible drawdown and how large it is.
    As always, Financial Advice is personal to you. What might be right for one person might not be for another. 

    Yes, money in a pension is more IHT efficient, but that is all depending on your overall IHT position. If you have property, and leaving your Estate to your children, then you will have an IHT allowance of £500k. If you are married & your Estate passes directly to your spouse then there is no IHT to pay, and when your spouse dies their IHT allowance will be 2x£500k (assuming no gifts etc etc).

    Again, it all depends on what is more important - more tax efficient income now or leaving more tax -efficient lump sums to your kids. 
    Isn’t it better to leave your “half” of your home to your kids, so if the remaining parent has to go into care, then the kids have protected their share?
    In principal yes, need to hold as tenants in common prior and whilst I'm a bit out of touch there used to be something around market rental being paid but that's probably if the whole house was gifted.
  • edited February 13
    Rob7Lee said:
    redman said:
    Everyone takes a different approach. I live comfortably off the rents and not needed to touch the pension. Only issue is the residential houses have been owned for some years. They are not in a Limited Company or in a trust so CGT is an issue if I sell. 
    Please tell me that you've at least taken the  Tax-free element from your pension ?  
    Golfie, I haven't taken most of my tax-free element from my pension. Reason is I was advised to live off my other income and savings before drawing this down. Benefit being that it would be protected from inheritance tax whilst in a pension wrapper
    Am I missing something stupid?



    If you die before 75 that is correct, although there are some caveats on LTA but who knows if that'll apply in the future, if over 75 income tax applies, so any large amount drawn by the beneficiaries will likely incur 45% tax.

    So it'll depend on your personal circumstances and theirs, and assuming the pot is a DC pot and in flexible drawdown and how large it is.
    As always, Financial Advice is personal to you. What might be right for one person might not be for another. 

    Yes, money in a pension is more IHT efficient, but that is all depending on your overall IHT position. If you have property, and leaving your Estate to your children, then you will have an IHT allowance of £500k. If you are married & your Estate passes directly to your spouse then there is no IHT to pay, and when your spouse dies their IHT allowance will be 2x£500k (assuming no gifts etc etc).

    Again, it all depends on what is more important - more tax efficient income now or leaving more tax -efficient lump sums to your kids. 
    Isn’t it better to leave your “half” of your home to your kids, so if the remaining parent has to go into care, then the kids have protected their share?

    Yes - tenants in common as opposed to joint tenants so that the right to survivorship doesn't apply. Make sure your will is very precise because dying intestate as a tenant in common can be a nightmare.
  • Rob7Lee said:
    redman said:
    Everyone takes a different approach. I live comfortably off the rents and not needed to touch the pension. Only issue is the residential houses have been owned for some years. They are not in a Limited Company or in a trust so CGT is an issue if I sell. 
    Please tell me that you've at least taken the  Tax-free element from your pension ?  
    Golfie, I haven't taken most of my tax-free element from my pension. Reason is I was advised to live off my other income and savings before drawing this down. Benefit being that it would be protected from inheritance tax whilst in a pension wrapper
    Am I missing something stupid?



    If you die before 75 that is correct, although there are some caveats on LTA but who knows if that'll apply in the future, if over 75 income tax applies, so any large amount drawn by the beneficiaries will likely incur 45% tax.

    So it'll depend on your personal circumstances and theirs, and assuming the pot is a DC pot and in flexible drawdown and how large it is.
    As always, Financial Advice is personal to you. What might be right for one person might not be for another. 

    Yes, money in a pension is more IHT efficient, but that is all depending on your overall IHT position. If you have property, and leaving your Estate to your children, then you will have an IHT allowance of £500k. If you are married & your Estate passes directly to your spouse then there is no IHT to pay, and when your spouse dies their IHT allowance will be 2x£500k (assuming no gifts etc etc).

    Again, it all depends on what is more important - more tax efficient income now or leaving more tax -efficient lump sums to your kids. 
    Isn’t it better to leave your “half” of your home to your kids, so if the remaining parent has to go into care, then the kids have protected their share?
    Again, it all depends on what you are trying to achieve. If your house is valued at over £1m & you are joint tenants with your spouse then your Estate is IHT free. If you are tenants in common & leave 50% to your children then there could be IHT due. Also, what is these likelihood of the surviving spouse having to go into care & the fees eating up the whole Estate ?

    You take you chances.....
  • redman said:
    Everyone takes a different approach. I live comfortably off the rents and not needed to touch the pension. Only issue is the residential houses have been owned for some years. They are not in a Limited Company or in a trust so CGT is an issue if I sell. 
    Please tell me that you've at least taken the  Tax-free element from your pension ?  
    Golfie, I haven't taken most of my tax-free element from my pension. Reason is I was advised to live off my other income and savings before drawing this down. Benefit being that it would be protected from inheritance tax whilst in a pension wrapper. 
    Am I missing something stupid?



    It's what I do (ex-FA).
  • redman said:
    Everyone takes a different approach. I live comfortably off the rents and not needed to touch the pension. Only issue is the residential houses have been owned for some years. They are not in a Limited Company or in a trust so CGT is an issue if I sell. 
    Please tell me that you've at least taken the  Tax-free element from your pension ?  
    Golfie, I haven't taken most of my tax-free element from my pension. Reason is I was advised to live off my other income and savings before drawing this down. Benefit being that it would be protected from inheritance tax whilst in a pension wrapper. 
    Am I missing something stupid?



    I’m being told almost the same, but with the added caveat that this will be looked into closely when I’m 74 in 21/2 years.
  • edited February 14
    Just saying that there is an element of tax-free income available from your pension if you want it. Some people retire before getting the State pension & therefore might be below the 20% tax rate and so taking taxable income from a pension might not be the wisest thing to do if you can take some of it tax free. That might be in the form of a 25/75 split or 100% tax free. Just depends on your individual tax circumstances & also where you are taking the other monies from to generate your income. No real right or wrong answers, just what works best for you. 

    Also, being cynical, it might be in your Adviser's best interests if you didn't touch your Pension that he is "managing" for you and probably taking an ongoing fee for. The more you take out the less fees he will make from you.  Better you take money out of Cash/Premium Bonds/Property that he has no control over or taking fees from. Just saying.  
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  • cafcpolo said:
    Rob7Lee said:
    Well the markets continue to perform thankfully, think I'm going to take/bank some profit in my SIPP which is up over 12% since October, crazy times, I've earned more than my net annual salary since October.

    How is everyone else doing, banking any profits or letting it ride?
    Let it ride!!!

    Same boat since October, a smidge under 12.5%. Almost 3% in Feb alone.
    I sold some yesterday in the end, February looking like another great month so far. Rebalanced everything down so no fund/ETF is more than 15% of the overall.
  • Rob7Lee said:
    cafcpolo said:
    Rob7Lee said:
    Well the markets continue to perform thankfully, think I'm going to take/bank some profit in my SIPP which is up over 12% since October, crazy times, I've earned more than my net annual salary since October.

    How is everyone else doing, banking any profits or letting it ride?
    Let it ride!!!

    Same boat since October, a smidge under 12.5%. Almost 3% in Feb alone.
    I sold some yesterday in the end, February looking like another great month so far. Rebalanced everything down so no fund/ETF is more than 15% of the overall.
    Bold move, Feb has been a corker so far!
  • cafcpolo said:
    Rob7Lee said:
    cafcpolo said:
    Rob7Lee said:
    Well the markets continue to perform thankfully, think I'm going to take/bank some profit in my SIPP which is up over 12% since October, crazy times, I've earned more than my net annual salary since October.

    How is everyone else doing, banking any profits or letting it ride?
    Let it ride!!!

    Same boat since October, a smidge under 12.5%. Almost 3% in Feb alone.
    I sold some yesterday in the end, February looking like another great month so far. Rebalanced everything down so no fund/ETF is more than 15% of the overall.
    Bold move, Feb has been a corker so far!
    I may be a bit older than you, with 4 years until I can draw (I probably won't at that point but you never know) having made since October around 4 years worth of what I would like to be drawing a year I felt I needed to bank some! I have two other smaller pensions, one I play with and try and beat the fund managers (winning so far!) and the other my existing works pension, I just let that ride as has quite a large amount going in monthly.

    First world problems as they say....
  • For those who get end of year pay reviews and bonuses - how do you go about working out the new net position - I have the option of deferring to pension but want to model different options.


  • Jon_CAFC_ said:
    For those who get end of year pay reviews and bonuses - how do you go about working out the new net position - I have the option of deferring to pension but want to model different options.


    MoneySavingExpert has a net salary / take home calculator that lets you input pension amounts. May help you. 
  • Rob7Lee said:
    cafcpolo said:
    Rob7Lee said:
    cafcpolo said:
    Rob7Lee said:
    Well the markets continue to perform thankfully, think I'm going to take/bank some profit in my SIPP which is up over 12% since October, crazy times, I've earned more than my net annual salary since October.

    How is everyone else doing, banking any profits or letting it ride?
    Let it ride!!!

    Same boat since October, a smidge under 12.5%. Almost 3% in Feb alone.
    I sold some yesterday in the end, February looking like another great month so far. Rebalanced everything down so no fund/ETF is more than 15% of the overall.
    Bold move, Feb has been a corker so far!
    I may be a bit older than you, with 4 years until I can draw (I probably won't at that point but you never know) having made since October around 4 years worth of what I would like to be drawing a year I felt I needed to bank some! I have two other smaller pensions, one I play with and try and beat the fund managers (winning so far!) and the other my existing works pension, I just let that ride as has quite a large amount going in monthly.

    First world problems as they say....
    Yeah, just over 17 to go here!
  • Jon_CAFC_ said:
    For those who get end of year pay reviews and bonuses - how do you go about working out the new net position - I have the option of deferring to pension but want to model different options.


    As already stated there are calculators online such as Money Saving expert. We get the same option and I tend to defer what I can to pension, helped that if you do (from bonus) company adds a further 10%.

    More importantly if you can afford to, do you want money for nothing? Assuming you are a tax payer putting into pension is very tax efficient generally.
  • Random investment observation:
    Select your favourite interactive charting app

    select FTSE 100. Last 10 years.
    Then add the French CAC 40 to it. 

    Merde alors!
  • Over 10 years it tells some story!

    CAC 40 +83%
    DAX 40 +81%
    DJ +143%
    NASDAQ +270%

    FTSE 100 +17%




  • Do these figures refelect dividends?
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