Savings and Investments thread

Covered End

redman said:

golfaddick said:

HardyAddick 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).

CharltonKerry

redman said:

golfaddick said:

HardyAddick 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.

golfaddick

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.  

Rob7Lee

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.

cafcpolo

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!

Rob7Lee

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....

Jon_CAFC_

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.

valleynick66

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. 

cafcpolo

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!

Rob7Lee

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.

PragueAddick

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!

bobmunro

Over 10 years it tells some story!

CAC 40 +83%

DAX 40 +81%

DJ +143%

NASDAQ +270%

FTSE 100 +17%

IdleHans

Do these figures refelect dividends?

bobmunro

IdleHans said:

Do these figures refelect dividends?

No - just raw index figures.

PragueAddick

bobmunro said:e

Over 10 years it tells some story!

CAC 40 +83%

DAX 40 +81%

DJ +143%

NASDAQ +270%

FTSE 100 +17%

Even though I’ve insisted on having a decent exposure to Europe despite constant naysaying from British-  based analysts and commentators I was  genuinely taken aback by that. I didnt realise the DAX was level-pegging the French index either. It doesn’t get talked about in media at all! 

I suppose it might be a reflection  of the odd makeup of the FTSE100 over this period, heavy on old energy and light on tech. Curious how those closer to markets explain it. 

Rob7Lee

The media always bang on about the S&P500, mainly because it out performs just about everyone, Buffett isn't often wrong, it's certainly performed very well for me.

You have to remember the NASDAQ has what, about 3,500 companies v's the FTSE's 100. It also has the sectors that have out performed massively.

Carter

Remember me and my c*nt list? 

Its now vastly overtaken the nice list again, BAE and the other defence companies not to mention Centrica lead the charge 

Although, the money I have in funds are all doing well. The US one especially the Baillie Gifford American income one. The sustainable one with Janus Henderson is in clover but has dropped off somewhat 

I do see the irony in me contributing to this thread and my absolute, at best, mistrust of the shiny faced upper class yet handing them money each month to keep me fed and watered when I retire 

Captain_Birdseye

For anyone who is lucky enough/performed well enough (delete as appropriate) to earn a bonus this year, the latest FT Money Clinic episode discusses the basic options for how to use your bonus payment.

https://www.ft.com/content/317143c6-b65f-4a12-ab63-812d2ed798d5

redman

IdleHans said:

Do these figures refelect dividends?

No. For some reason @PragueAddick never likes dividends. With dividends reinvested, index linked funds are up something like 70%. I have no idea what level of dividends Euro funds pay. 

PragueAddick

redman said:

IdleHans said:

Do these figures refelect dividends?

No. For some reason @PragueAddick never likes dividends. With dividends reinvested, index linked funds are up something like 70%. I have no idea what level of dividends Euro funds pay. 

I say, a tad unfair there,  old chap. It's true that I tend to forget about factoring them in when comparing, equity funds etc, but in the last 2-3 years I realised I had to think more about income from my investments, not least thanks to nudging from various posters on here. I now have a small stock portfolio, all of which were selected for their dividend potential. The interesting thing is that while the UK stocks I selected are mixed, to put it mildly, in terms of capital appreciation, or even retention, the three European stocks ( Swiss Re, Volvo AB (trucks not cars) and Novo Nordisk) are up 24%, 44% and (look away now) 144% respectively in the just over two years I've owned them all; and I bought them for their dividends of 3-5% which they have delivered. My UK stocks are much more mixed. Look, I just got lucky with those Eurostocks, but Eurostocks pay solid dividends in line  with sector, of course they do, its Nasdaq companies that don't.

LargeAddick

Question - am I right in saying that as a basic rate tax payer with the ‘normal’ tax free allowance of £12,570 that I am allowed to earn a further £1,000 per tax year in interest without having to pay tax on it?

IdleHans

LargeAddick said:

Question - am I right in saying that as a basic rate tax payer with the ‘normal’ tax free allowance of £12,570 that I am allowed to earn a further £1,000 per tax year in interest without having to pay tax on it?

Essentially yes. But if you earn less than 18,570 from income and interest combined, there is no tax to pay on the interest income.

golfaddick

PragueAddick said:

bobmunro said:e

Over 10 years it tells some story!

CAC 40 +83%

DAX 40 +81%

DJ +143%

NASDAQ +270%

FTSE 100 +17%

Even though I’ve insisted on having a decent exposure to Europe despite constant naysaying from British-  based analysts and commentators I was  genuinely taken aback by that. I didnt realise the DAX was level-pegging the French index either. It doesn’t get talked about in media at all! 

I suppose it might be a reflection  of the odd makeup of the FTSE100 over this period, heavy on old energy and light on tech. Curious how those closer to markets explain it. 

I did a little charting earlier.

Eurostox
FTSE100, 250 & Allshare
S&P500
Nikkei  

Wowsers  !!

THE FTSE Allshare is miles lower than the rest, especially over the past 20 years. Seriously underperformed. 

Also the last 12 months makes interesting reading. Japan up 22%, US up 16%. FTSE100 up 5%.....and that's after a good run !

Rob7Lee

golfaddick said:

PragueAddick said:

bobmunro said:e

Over 10 years it tells some story!

CAC 40 +83%

DAX 40 +81%

DJ +143%

NASDAQ +270%

FTSE 100 +17%

Even though I’ve insisted on having a decent exposure to Europe despite constant naysaying from British-  based analysts and commentators I was  genuinely taken aback by that. I didnt realise the DAX was level-pegging the French index either. It doesn’t get talked about in media at all! 

I suppose it might be a reflection  of the odd makeup of the FTSE100 over this period, heavy on old energy and light on tech. Curious how those closer to markets explain it. 

I did a little charting earlier.

Eurostox
FTSE100, 250 & Allshare
S&P500
Nikkei  

Wowsers  !!

THE FTSE Allshare is miles lower than the rest, especially over the past 20 years. Seriously underperformed. 

Also the last 12 months makes interesting reading. Japan up 22%, US up 16%. FTSE100 up 5%.....and that's after a good run !

Now you know why I've turned quite a bit of my pension into cash!

golfaddick

Rob7Lee said:

golfaddick said:

PragueAddick said:

bobmunro said:e

Over 10 years it tells some story!

CAC 40 +83%

DAX 40 +81%

DJ +143%

NASDAQ +270%

FTSE 100 +17%

Even though I’ve insisted on having a decent exposure to Europe despite constant naysaying from British-  based analysts and commentators I was  genuinely taken aback by that. I didnt realise the DAX was level-pegging the French index either. It doesn’t get talked about in media at all! 

I suppose it might be a reflection  of the odd makeup of the FTSE100 over this period, heavy on old energy and light on tech. Curious how those closer to markets explain it. 

I did a little charting earlier.

Eurostox
FTSE100, 250 & Allshare
S&P500
Nikkei  

Wowsers  !!

THE FTSE Allshare is miles lower than the rest, especially over the past 20 years. Seriously underperformed. 

Also the last 12 months makes interesting reading. Japan up 22%, US up 16%. FTSE100 up 5%.....and that's after a good run !

Now you know why I've turned quite a bit of my pension into cash!

Well put it back into UK equities.....you don't want to miss the recovery. 😄

Rob7Lee

golfaddick said:

Rob7Lee said:

golfaddick said:

PragueAddick said:

bobmunro said:e

Over 10 years it tells some story!

CAC 40 +83%

DAX 40 +81%

DJ +143%

NASDAQ +270%

FTSE 100 +17%

Even though I’ve insisted on having a decent exposure to Europe despite constant naysaying from British-  based analysts and commentators I was  genuinely taken aback by that. I didnt realise the DAX was level-pegging the French index either. It doesn’t get talked about in media at all! 

I suppose it might be a reflection  of the odd makeup of the FTSE100 over this period, heavy on old energy and light on tech. Curious how those closer to markets explain it. 

I did a little charting earlier.

Eurostox
FTSE100, 250 & Allshare
S&P500
Nikkei  

Wowsers  !!

THE FTSE Allshare is miles lower than the rest, especially over the past 20 years. Seriously underperformed. 

Also the last 12 months makes interesting reading. Japan up 22%, US up 16%. FTSE100 up 5%.....and that's after a good run !

Now you know why I've turned quite a bit of my pension into cash!

Well put it back into UK equities.....you don't want to miss the recovery. 😄

Still got quite a bit in UK, am looking elsewhere......

cafcpolo

Rob7Lee said:

golfaddick said:

Rob7Lee said:

golfaddick said:

PragueAddick said:

bobmunro said:e

Over 10 years it tells some story!

CAC 40 +83%

DAX 40 +81%

DJ +143%

NASDAQ +270%

FTSE 100 +17%

Even though I’ve insisted on having a decent exposure to Europe despite constant naysaying from British-  based analysts and commentators I was  genuinely taken aback by that. I didnt realise the DAX was level-pegging the French index either. It doesn’t get talked about in media at all! 

I suppose it might be a reflection  of the odd makeup of the FTSE100 over this period, heavy on old energy and light on tech. Curious how those closer to markets explain it. 

I did a little charting earlier.

Eurostox
FTSE100, 250 & Allshare
S&P500
Nikkei  

Wowsers  !!

THE FTSE Allshare is miles lower than the rest, especially over the past 20 years. Seriously underperformed. 

Also the last 12 months makes interesting reading. Japan up 22%, US up 16%. FTSE100 up 5%.....and that's after a good run !

Now you know why I've turned quite a bit of my pension into cash!

Well put it back into UK equities.....you don't want to miss the recovery. 😄

Still got quite a bit in UK, am looking elsewhere......

Bitcoin 😉

Rob7Lee

cafcpolo said:

Rob7Lee said:

golfaddick said:

Rob7Lee said:

golfaddick said:

PragueAddick said:

bobmunro said:e

Over 10 years it tells some story!

CAC 40 +83%

DAX 40 +81%

DJ +143%

NASDAQ +270%

FTSE 100 +17%

Even though I’ve insisted on having a decent exposure to Europe despite constant naysaying from British-  based analysts and commentators I was  genuinely taken aback by that. I didnt realise the DAX was level-pegging the French index either. It doesn’t get talked about in media at all! 

I suppose it might be a reflection  of the odd makeup of the FTSE100 over this period, heavy on old energy and light on tech. Curious how those closer to markets explain it. 

I did a little charting earlier.

Eurostox
FTSE100, 250 & Allshare
S&P500
Nikkei  

Wowsers  !!

THE FTSE Allshare is miles lower than the rest, especially over the past 20 years. Seriously underperformed. 

Also the last 12 months makes interesting reading. Japan up 22%, US up 16%. FTSE100 up 5%.....and that's after a good run !

Now you know why I've turned quite a bit of my pension into cash!

Well put it back into UK equities.....you don't want to miss the recovery. 😄

Still got quite a bit in UK, am looking elsewhere......

Bitcoin 😉

Not sure any of my pension providers do that ETF 

clb74

LargeAddick said:

Question - am I right in saying that as a basic rate tax payer with the ‘normal’ tax free allowance of £12,570 that I am allowed to earn a further £1,000 per tax year in interest without having to pay tax on it?

Large, haven't you got a family member involved with the financial industry?

bobmunro

IdleHans said:

LargeAddick said:

Question - am I right in saying that as a basic rate tax payer with the ‘normal’ tax free allowance of £12,570 that I am allowed to earn a further £1,000 per tax year in interest without having to pay tax on it?

Essentially yes. But if you earn less than 18,570 from income and interest combined, there is no tax to pay on the interest income.

A basic rate tax payer earning income excluding interest less than £12,570 (personal allowance) could earn £6,000 in interest and not pay a penny tax (£1,000 savings allowance and £5,000 staring rate for savings). That £5,000 starting rate reduces £1 for £1 if you earn above the £12,570, reducing to zero if you earn above £17,570., at which point you would just get the £1,000 savings allowance.

E.g. earned income of £15,000 would get you a tax free savings interest allowance of £1,000 plus a starting rate allowance of £2,570 (£17,570 - £15,000) so the first £3,570 of interest is tax free.