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Savings and Investments thread
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I know. Worry that there could be a dip again, but still confident that by Aug 1st the FTSE is above 6500PragueAddick said:Note to @golfaddick. Still more than two months to go, Golfie...before we examine your and others predictions for your chosen indices....
:-)0 -
How is everybody's portfolio now since pre cv19? My recovery has been far quicker than I expected so maybe its time to withdraw and bury cash under the patio before the world of negative equity!0
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Mine is about 1% off its mid feb high. Looked at the end of year statement for 2019 & its above that.mendonca said:How is everybody's portfolio now since pre cv19? My recovery has been far quicker than I expected so maybe its time to withdraw and bury cash under the patio before the world of negative equity!
Looking at funds today for clients. Baillie Gifford American is up over 10% this year.
Global meltdown.....pah.0 -
US Stocks up, Apple, Amazon and Alphabet about 5%
Crypto up about 12%
SIPP down 1%
S&S ISAs up 3%
UK ETFs up 4%
US ETF up %%
UK Stocks about flat0 -
The son’s Junior ISA now has a +10.09% next to it which is pleasant.0
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Glad we can agree for once :-) Baillie Gifford American has been an unbelievable performer this last few months.golfaddick said:
Mine is about 1% off its mid feb high. Looked at the end of year statement for 2019 & its above that.mendonca said:How is everybody's portfolio now since pre cv19? My recovery has been far quicker than I expected so maybe its time to withdraw and bury cash under the patio before the world of negative equity!
Looking at funds today for clients. Baillie Gifford American is up over 10% this year.
Global meltdown.....pah.
Thanks to someone mentioning it/tipping it on here (Golfie if it was you, thank you) I took a look at the fund and decided to dip my toes in it back in November, buying some units in at £8.491. 2 months later, the units had gone up by a £1 so I bought a much bigger number of units in January at £9.477. Today, they stand at £12.12. Unbelievable, given the circumstances of the last 3 months. Surely it can't keep going up like this, can it?
Another holding I have with Baillie Gifford that has done remarkably well recently is the Global Discovery Fund. Again, an incredible performance given the circumstances - up 8% over the last 3 months and 24% over the last 6 months.
Saw some reference on here to another Bailee Gifford fund - the Positive Change one - recently so decided now to give that a go as well, exchanging the units I hold in Artemis Income for it. (Down about 20% this last few months, not good). Hope I'm not too late to the party!
Finally, I'm looking for another good Bond fund to go with the Jupiter Strategic fund I already have. Sorely tempted, in view of the above, to go with the Bailee Gifford Strategic bond fund although it looks like the Allianz Strategic bond fund is romping away at the moment and might be a better bet. Anyone any thoughts on that?0 -
Don't want to blow my own trumpet but I think it was me recommending those Baillee Gifford funds. And the Allianz Strategic Bond fund. I have the BG American & Global Discovery in my SIPP along with the Allianz fund. Like you I cant believe the growth they have produced over the past 12-18 months & sure it cant continue........but lets see.
Another good Strategic Bond fund is Waverton Sterling Bond, although it's not on a lot of platforms. If you want a straight forward Corporate Bond fund then I've been using Schroder Long Dated CB.
I took my own advice last week & switched a small amount (less than 5%) into the Charteris Gold & Previous Metals fund. Already up 8%.
Saying all that I still think I need more UK exposure. Only have about 15% & I would typically go 20% ish. I switched out of some before Brexit & went into the Argonaut Absolute Return fund as a hedge. Worked well as it's up 15% since December, but thinking it might be the time to go back into UK equities. My big disappointment is a great fund that I've been in for about 2-3 years. Cavendish AIM fund. Had made about 50% over the last 3 years but dropped like a stone when Corona hit the markets. Picked up a bit but still down 20%. Don't want to ditch it yet but looking at some of the UK funds that are already picking up - Royal London Sustainable Leaders & the 2 Slater funds (Growth and Recovery) are very tempting.3 -
My main portfolio is up 5% on this time last year. Can't tell you about my SIPP, because ..er...Hargreaves Lansdowne can't tell me :-(
I do think many of us are getting a lift from tech stocks, some of which are embedded in some more general funds. My two tech funds, Allianz and Polar Capital, are both at record levels. They could easily crumble, people.
I went back into Axa Framlington Biotech on 17th March, and it is already up 39%!! But being a wimp, I didn't put much in.
I'm not as optimistic as Golfie, but a few people on the thread were understandably seriously worried in March, and Golfie led the way in telling them not to panic, and I am glad that he turned out to be correct, and that they will be breathing easier. It does now look as if the market hit the floor at FTSE 100 - 5000 and I've now set 5500 as my target level at which to buy - but I've got a history of setting myself low index targets for buying, which never materialised, and is the reason why my SIPP was (and still is) quite cash heavy.
Stay Alert! :-)0 -
I never leave cash in my SIPP.......it is always fully invested. Cash hardly ever gives a positive return & I'd rather go defensive with Bonds, Absolute return funds or alternatives than be in cash. Very rarely can you time the market.......as the past 2 months have shown.0
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I know, this is good advice, and I found myself in that position initially because switching SIPP providers turned out to be a lamentably long and untransparent process. H-L could not re- invest in an SEC fund which was the foundation of my AJ Bell SIPP (set up by an IFA) Then again as I'm now 66, being 35% in cash in March didn't seem such a bad thing!golfaddick said:I never leave cash in my SIPP.......it is always fully invested. Cash hardly ever gives a positive return & I'd rather go defensive with Bonds, Absolute return funds or alternatives than be in cash. Very rarely can you time the market.......as the past 2 months have shown.0 - Sponsored links:
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Great that you were in cash back then, but with worldwide markets falling south of 20% I would have thought it was a great time to be going back in. I know no-one can tell you where the bottom is, or where the markets are heading, but a discount is a discount. No need to put it all in now if you feel there is more downside, but drip feeding some in wouldn't be a bad idea. Then again I'm 13 years younger than you & have another 8-10 years before I start taking mine.PragueAddick said:
I know, this is good advice, and I found myself in that position initially because switching SIPP providers turned out to be a lamentably long and untransparent process. H-L could not re- invest in an SEC fund which was the foundation of my AJ Bell SIPP (set up by an IFA) Then again as I'm now 66, being 35% in cash in March didn't seem such a bad thing!golfaddick said:I never leave cash in my SIPP.......it is always fully invested. Cash hardly ever gives a positive return & I'd rather go defensive with Bonds, Absolute return funds or alternatives than be in cash. Very rarely can you time the market.......as the past 2 months have shown.0 -
I did put some in; I set trigger index points on the way down to put more in, but I am very wary about putting in more on a monthly drip feed basis right now. If I were younger I would be more inclined to do it that way.golfaddick said:
Great that you were in cash back then, but with worldwide markets falling south of 20% I would have thought it was a great time to be going back in. I know no-one can tell you where the bottom is, or where the markets are heading, but a discount is a discount. No need to put it all in now if you feel there is more downside, but drip feeding some in wouldn't be a bad idea. Then again I'm 13 years younger than you & have another 8-10 years before I start taking mine.PragueAddick said:
I know, this is good advice, and I found myself in that position initially because switching SIPP providers turned out to be a lamentably long and untransparent process. H-L could not re- invest in an SEC fund which was the foundation of my AJ Bell SIPP (set up by an IFA) Then again as I'm now 66, being 35% in cash in March didn't seem such a bad thing!golfaddick said:I never leave cash in my SIPP.......it is always fully invested. Cash hardly ever gives a positive return & I'd rather go defensive with Bonds, Absolute return funds or alternatives than be in cash. Very rarely can you time the market.......as the past 2 months have shown.0 -
At 66 shouldn't you now be drawing it! Taking out your 25% cash tax free?PragueAddick said:
I did put some in; I set trigger index points on the way down to put more in, but I am very wary about putting in more on a monthly drip feed basis right now. If I were younger I would be more inclined to do it that way.golfaddick said:
Great that you were in cash back then, but with worldwide markets falling south of 20% I would have thought it was a great time to be going back in. I know no-one can tell you where the bottom is, or where the markets are heading, but a discount is a discount. No need to put it all in now if you feel there is more downside, but drip feeding some in wouldn't be a bad idea. Then again I'm 13 years younger than you & have another 8-10 years before I start taking mine.PragueAddick said:
I know, this is good advice, and I found myself in that position initially because switching SIPP providers turned out to be a lamentably long and untransparent process. H-L could not re- invest in an SEC fund which was the foundation of my AJ Bell SIPP (set up by an IFA) Then again as I'm now 66, being 35% in cash in March didn't seem such a bad thing!golfaddick said:I never leave cash in my SIPP.......it is always fully invested. Cash hardly ever gives a positive return & I'd rather go defensive with Bonds, Absolute return funds or alternatives than be in cash. Very rarely can you time the market.......as the past 2 months have shown.
I can't help but think that the government needs to seriously ramp up their income over the coming years, stopping tax relief on pensions or reducing it must be on the cards. I'd be getting my money out if i were able to right now as I don't trust them not to move the goal posts.......0 -
If they did away with the TFC element then you might as well forget about pensions. They are already tax neutral to many investors as although you receive tax relief going in you pay tax on the income upon retirement. Before the change in Chancellor just before this tears Budget it was widely mooted that tax relief was going to change to a flat rate for all. Probably 25%.Rob7Lee said:
At 66 shouldn't you now be drawing it! Taking out your 25% cash tax free?PragueAddick said:
I did put some in; I set trigger index points on the way down to put more in, but I am very wary about putting in more on a monthly drip feed basis right now. If I were younger I would be more inclined to do it that way.golfaddick said:
Great that you were in cash back then, but with worldwide markets falling south of 20% I would have thought it was a great time to be going back in. I know no-one can tell you where the bottom is, or where the markets are heading, but a discount is a discount. No need to put it all in now if you feel there is more downside, but drip feeding some in wouldn't be a bad idea. Then again I'm 13 years younger than you & have another 8-10 years before I start taking mine.PragueAddick said:
I know, this is good advice, and I found myself in that position initially because switching SIPP providers turned out to be a lamentably long and untransparent process. H-L could not re- invest in an SEC fund which was the foundation of my AJ Bell SIPP (set up by an IFA) Then again as I'm now 66, being 35% in cash in March didn't seem such a bad thing!golfaddick said:I never leave cash in my SIPP.......it is always fully invested. Cash hardly ever gives a positive return & I'd rather go defensive with Bonds, Absolute return funds or alternatives than be in cash. Very rarely can you time the market.......as the past 2 months have shown.
I can't help but think that the government needs to seriously ramp up their income over the coming years, stopping tax relief on pensions or reducing it must be on the cards. I'd be getting my money out if i were able to right now as I don't trust them not to move the goal posts.......
ISA's would then be the go-to savings vehicle. Which is something Steve Webb (ex Pensions minister during the Coalition Government) has previously said. Over the past 10 years the ISA allowance has gone up quite a bit whereas the Pension annual allowance has come down. (10 years ago you could put £7200 into an ISA & £265k into a pension......its now £20k & £40k respectively).0 -
well actually I was wondering about this, and going to ask, but before replying, (anybody) bear in mind that unlike most on the thread, I am tax non-resident in the UK. I pay UK tax but on earnings below 20k pa, and I have not been able to actually pay into the SIPP for several years, so I am really managing it in the same way as my funds outside the SIPP, but obviously trying to dial down on the riskier stuff in my SIPP. So as I see it, I don't see the point yet in taking out a lump sum without having a specific reason. I'd just have to park it in another useless 1% cash account in a bank. But maybe I have missed some scenarios?Rob7Lee said:
At 66 shouldn't you now be drawing it! Taking out your 25% cash tax free?PragueAddick said:
I did put some in; I set trigger index points on the way down to put more in, but I am very wary about putting in more on a monthly drip feed basis right now. If I were younger I would be more inclined to do it that way.golfaddick said:
Great that you were in cash back then, but with worldwide markets falling south of 20% I would have thought it was a great time to be going back in. I know no-one can tell you where the bottom is, or where the markets are heading, but a discount is a discount. No need to put it all in now if you feel there is more downside, but drip feeding some in wouldn't be a bad idea. Then again I'm 13 years younger than you & have another 8-10 years before I start taking mine.PragueAddick said:
I know, this is good advice, and I found myself in that position initially because switching SIPP providers turned out to be a lamentably long and untransparent process. H-L could not re- invest in an SEC fund which was the foundation of my AJ Bell SIPP (set up by an IFA) Then again as I'm now 66, being 35% in cash in March didn't seem such a bad thing!golfaddick said:I never leave cash in my SIPP.......it is always fully invested. Cash hardly ever gives a positive return & I'd rather go defensive with Bonds, Absolute return funds or alternatives than be in cash. Very rarely can you time the market.......as the past 2 months have shown.
I can't help but think that the government needs to seriously ramp up their income over the coming years, stopping tax relief on pensions or reducing it must be on the cards. I'd be getting my money out if i were able to right now as I don't trust them not to move the goal posts.......0 -
Help please on a Pension question. I’m sure Golfaddick will know this.
My better half has three pensions, Final Salary BT and Pearson’s and part DB / DC with An AVC with current employer. She Is retiring this year The BT pension incorporates a minimum cash amount she can take which is about 12% of the value of the BT pot.What she wishes to do Is take the DC and AVC sums from her current scheme all in cash. Whilst this is still below 25% of the value of the amalgamated pension pots, it’s more than 25% of the pot with her current employer.As greater than 25% I am assuming her current pension admin will, having no knowledge of the other pensions, tax the cash sum drawn that exceeds her 25% pension with them.However, when the amalgamated view is taken this cash sum is less than 25%. Can she reclaim this tax back..... ? Or can she only take 25% from each individual pension. Therefore not picking and choosing where her 25% is derived from.0 -
Unfortunately she will not be able to take any more than 25% tax-free from each individual pension. Even if she took more & it was taxed, she would not be able to reclaim any tax back just because it was under the whole 25% limit.RaplhMilne said:Help please on a Pension question. I’m sure Golfaddick will know this.
My better half has three pensions, Final Salary BT and Pearson’s and part DB / DC with An AVC with current employer. She Is retiring this year The BT pension incorporates a minimum cash amount she can take which is about 12% of the value of the BT pot.What she wishes to do Is take the DC and AVC sums from her current scheme all in cash. Whilst this is still below 25% of the value of the amalgamated pension pots, it’s more than 25% of the pot with her current employer.As greater than 25% I am assuming her current pension admin will, having no knowledge of the other pensions, tax the cash sum drawn that exceeds her 25% pension with them.However, when the amalgamated view is taken this cash sum is less than 25%. Can she reclaim this tax back..... ? Or can she only take 25% from each individual pension. Therefore not picking and choosing where her 25% is derived from.
The only way she could do it would be to transfer all the pensions into a Drawdown plan & then take as much as she likes up to the 25% limit.
Obviously transferring out of a DB scheme is not always the best option & you would need specialist advice from an IFA. I've never got into this area as the vast majority of my clients are Doctors & so are in the (non-transferable) NHS pension. Also the costs can be quite high......the company I work for charges a minimum of £5k to do this.
Alternatively she should be able to commute some of her DB pensions for a larger lump sum. Ie, if they are quoting £15k pa & 45k lump sum she should be able to increase the lump sum to around £80k & have a reduced pension of £12k pa.
Hope this helps.0 -
golfaddick said:
Unfortunately she will not be able to take any more than 25% tax-free from each individual pension. Even if she took more & it was taxed, she would not be able to reclaim any tax back just because it was under the whole 25% limit.RaplhMilne said:Help please on a Pension question. I’m sure Golfaddick will know this.
My better half has three pensions, Final Salary BT and Pearson’s and part DB / DC with An AVC with current employer. She Is retiring this year The BT pension incorporates a minimum cash amount she can take which is about 12% of the value of the BT pot.What she wishes to do Is take the DC and AVC sums from her current scheme all in cash. Whilst this is still below 25% of the value of the amalgamated pension pots, it’s more than 25% of the pot with her current employer.As greater than 25% I am assuming her current pension admin will, having no knowledge of the other pensions, tax the cash sum drawn that exceeds her 25% pension with them.However, when the amalgamated view is taken this cash sum is less than 25%. Can she reclaim this tax back..... ? Or can she only take 25% from each individual pension. Therefore not picking and choosing where her 25% is derived from.
The only way she could do it would be to transfer all the pensions into a Drawdown plan & then take as much as she likes up to the 25% limit.
Obviously transferring out of a DB scheme is not always the best option & you would need specialist advice from an IFA. I've never got into this area as the vast majority of my clients are Doctors & so are in the (non-transferable) NHS pension. Also the costs can be quite high......the company I work for charges a minimum of £5k to do this.
Alternatively she should be able to commute some of her DB pensions for a larger lump sum. Ie, if they are quoting £15k pa & 45k lump sum she should be able to increase the lump sum to around £80k & have a reduced pension of £12k pa.
Hope this helps.GolfaddickI was afraid this may be the case. She has no intention of giving up the DB pensions. What she has in her current employment pension is An offer from the DB scheme £7700 pension and £51800 cash. Her DC Element is £35800, she is told she can take £8975 tax free from this DC element. This leaves her £26850 in the DC which she could buy an annuity, or take as Cash and pay the tax, most likely 40%.It seems then that from the two elements she can take a total of £51800 and £8975 cash total £60775.
I am thinking that as these two are linked, she should be able to take all the DC as cash £35800, and make up the remainder of the total £60775 from the DB Scheme £22,275. Therefore reducing her cash from the DB scheme and increasing the DB pension from £7700 rather than buying an annuity.Your thoughts on this would be greatly appreciated. Not taking anything you say as advice, just looking to understand if my thinking on the situation is correct.
thanks0 -
I will have to admit I'm not an expert of DB schemes (apart from the NHS one) but I don't think its possible to do what you propose. Although they are in the same scheme, one is a DB & the other DC & so will have different rules & regulations as to the tax-free lump sum. A DC scheme gives you the right to 25% TFC but that is not the case with DB schemes. They each have their own sets of rules - the NHS pension gives a tax free element of 3×the annual pension, which is a fraction of the "real" value of the pension rights & nowhere near 25%.RaplhMilne said:golfaddick said:
Unfortunately she will not be able to take any more than 25% tax-free from each individual pension. Even if she took more & it was taxed, she would not be able to reclaim any tax back just because it was under the whole 25% limit.RaplhMilne said:Help please on a Pension question. I’m sure Golfaddick will know this.
My better half has three pensions, Final Salary BT and Pearson’s and part DB / DC with An AVC with current employer. She Is retiring this year The BT pension incorporates a minimum cash amount she can take which is about 12% of the value of the BT pot.What she wishes to do Is take the DC and AVC sums from her current scheme all in cash. Whilst this is still below 25% of the value of the amalgamated pension pots, it’s more than 25% of the pot with her current employer.As greater than 25% I am assuming her current pension admin will, having no knowledge of the other pensions, tax the cash sum drawn that exceeds her 25% pension with them.However, when the amalgamated view is taken this cash sum is less than 25%. Can she reclaim this tax back..... ? Or can she only take 25% from each individual pension. Therefore not picking and choosing where her 25% is derived from.
The only way she could do it would be to transfer all the pensions into a Drawdown plan & then take as much as she likes up to the 25% limit.
Obviously transferring out of a DB scheme is not always the best option & you would need specialist advice from an IFA. I've never got into this area as the vast majority of my clients are Doctors & so are in the (non-transferable) NHS pension. Also the costs can be quite high......the company I work for charges a minimum of £5k to do this.
Alternatively she should be able to commute some of her DB pensions for a larger lump sum. Ie, if they are quoting £15k pa & 45k lump sum she should be able to increase the lump sum to around £80k & have a reduced pension of £12k pa.
Hope this helps.GolfaddickI was afraid this may be the case. She has no intention of giving up the DB pensions. What she has in her current employment pension is An offer from the DB scheme £7700 pension and £51800 cash. Her DC Element is £35800, she is told she can take £8975 tax free from this DC element. This leaves her £26850 in the DC which she could buy an annuity, or take as Cash and pay the tax, most likely 40%.It seems then that from the two elements she can take a total of £51800 and £8975 cash total £60775.
I am thinking that as these two are linked, she should be able to take all the DC as cash £35800, and make up the remainder of the total £60775 from the DB Scheme £22,275. Therefore reducing her cash from the DB scheme and increasing the DB pension from £7700 rather than buying an annuity.Your thoughts on this would be greatly appreciated. Not taking anything you say as advice, just looking to understand if my thinking on the situation is correct.
thanks
I have in the past transferred away the DC funds in this type of scenario, leaving the DB intact. Although this doesn't solve your problem it will give you some flexibility as your wife could take the 25% TFC & leave the remainder in place, thus not having to take an annuity at that time......or even the DB rights.
Again, I would advise that she at least explores this situation, as well as looking at commuting some of the annual income into a larger tax-free lump sum, although looking at the figures you've stated they might be at the maximum already as that is a large income to lump sum ratio.0 -
Need to revive this thread......it was languishing on page 2 !
As of today my SIPP is now back to pre-Covid levels and above where it started this year.1 - Sponsored links:
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It was slightly tongue in cheek, as tax non-resident i've no idea what you should do! Only one piece of advice, plan how you are going to spend it. I've known far too many people (my father included) who simply wouldn't spend it.PragueAddick said:
well actually I was wondering about this, and going to ask, but before replying, (anybody) bear in mind that unlike most on the thread, I am tax non-resident in the UK. I pay UK tax but on earnings below 20k pa, and I have not been able to actually pay into the SIPP for several years, so I am really managing it in the same way as my funds outside the SIPP, but obviously trying to dial down on the riskier stuff in my SIPP. So as I see it, I don't see the point yet in taking out a lump sum without having a specific reason. I'd just have to park it in another useless 1% cash account in a bank. But maybe I have missed some scenarios?Rob7Lee said:
At 66 shouldn't you now be drawing it! Taking out your 25% cash tax free?PragueAddick said:
I did put some in; I set trigger index points on the way down to put more in, but I am very wary about putting in more on a monthly drip feed basis right now. If I were younger I would be more inclined to do it that way.golfaddick said:
Great that you were in cash back then, but with worldwide markets falling south of 20% I would have thought it was a great time to be going back in. I know no-one can tell you where the bottom is, or where the markets are heading, but a discount is a discount. No need to put it all in now if you feel there is more downside, but drip feeding some in wouldn't be a bad idea. Then again I'm 13 years younger than you & have another 8-10 years before I start taking mine.PragueAddick said:
I know, this is good advice, and I found myself in that position initially because switching SIPP providers turned out to be a lamentably long and untransparent process. H-L could not re- invest in an SEC fund which was the foundation of my AJ Bell SIPP (set up by an IFA) Then again as I'm now 66, being 35% in cash in March didn't seem such a bad thing!golfaddick said:I never leave cash in my SIPP.......it is always fully invested. Cash hardly ever gives a positive return & I'd rather go defensive with Bonds, Absolute return funds or alternatives than be in cash. Very rarely can you time the market.......as the past 2 months have shown.
I can't help but think that the government needs to seriously ramp up their income over the coming years, stopping tax relief on pensions or reducing it must be on the cards. I'd be getting my money out if i were able to right now as I don't trust them not to move the goal posts.......
Surely the ideal is you pop your clogs leaving 50p and a packet of Polo's, not a bucket load and some (more) to the tax man.....
Granted none of us know when we'll need it to last to, but enjoy it, you work all your life to save it.0 -
We'll make an IFA out of you yet!golfaddick said:Need to revive this thread......it was languishing on page 2 !
As of today my SIPP is now back to pre-Covid levels and above where it started this year.3 -
I was thinking about this again today, and maybe there is a basic rationale to taking drawdown which applies to everyone on the thread - but do tell me if I've got this right. If I take out 25% that is tax free. But if I keep it in the SIPP, and then eventually get an annuity, I will be paying income tax on the annuity payments??Rob7Lee said:
It was slightly tongue in cheek, as tax non-resident i've no idea what you should do! Only one piece of advice, plan how you are going to spend it. I've known far too many people (my father included) who simply wouldn't spend it.PragueAddick said:
well actually I was wondering about this, and going to ask, but before replying, (anybody) bear in mind that unlike most on the thread, I am tax non-resident in the UK. I pay UK tax but on earnings below 20k pa, and I have not been able to actually pay into the SIPP for several years, so I am really managing it in the same way as my funds outside the SIPP, but obviously trying to dial down on the riskier stuff in my SIPP. So as I see it, I don't see the point yet in taking out a lump sum without having a specific reason. I'd just have to park it in another useless 1% cash account in a bank. But maybe I have missed some scenarios?Rob7Lee said:
At 66 shouldn't you now be drawing it! Taking out your 25% cash tax free?PragueAddick said:
I did put some in; I set trigger index points on the way down to put more in, but I am very wary about putting in more on a monthly drip feed basis right now. If I were younger I would be more inclined to do it that way.golfaddick said:
Great that you were in cash back then, but with worldwide markets falling south of 20% I would have thought it was a great time to be going back in. I know no-one can tell you where the bottom is, or where the markets are heading, but a discount is a discount. No need to put it all in now if you feel there is more downside, but drip feeding some in wouldn't be a bad idea. Then again I'm 13 years younger than you & have another 8-10 years before I start taking mine.PragueAddick said:
I know, this is good advice, and I found myself in that position initially because switching SIPP providers turned out to be a lamentably long and untransparent process. H-L could not re- invest in an SEC fund which was the foundation of my AJ Bell SIPP (set up by an IFA) Then again as I'm now 66, being 35% in cash in March didn't seem such a bad thing!golfaddick said:I never leave cash in my SIPP.......it is always fully invested. Cash hardly ever gives a positive return & I'd rather go defensive with Bonds, Absolute return funds or alternatives than be in cash. Very rarely can you time the market.......as the past 2 months have shown.
I can't help but think that the government needs to seriously ramp up their income over the coming years, stopping tax relief on pensions or reducing it must be on the cards. I'd be getting my money out if i were able to right now as I don't trust them not to move the goal posts.......
Surely the ideal is you pop your clogs leaving 50p and a packet of Polo's, not a bucket load and some (more) to the tax man.....
Granted none of us know when we'll need it to last to, but enjoy it, you work all your life to save it.
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Not quite sure I understand you @PragueAddick. Why would you take out the 25% but keep it in the SIPP. ? As cash I presume ?. Not sure if that would be allowed......never heard if it before & cant see any point. Once you take any money out you effectively Crystalise the fund & a BCE takes place.PragueAddick said:
I was thinking about this again today, and maybe there is a basic rationale to taking drawdown which applies to everyone on the thread - but do tell me if I've got this right. If I take out 25% that is tax free. But if I keep it in the SIPP, and then eventually get an annuity, I will be paying income tax on the annuity payments??Rob7Lee said:
It was slightly tongue in cheek, as tax non-resident i've no idea what you should do! Only one piece of advice, plan how you are going to spend it. I've known far too many people (my father included) who simply wouldn't spend it.PragueAddick said:
well actually I was wondering about this, and going to ask, but before replying, (anybody) bear in mind that unlike most on the thread, I am tax non-resident in the UK. I pay UK tax but on earnings below 20k pa, and I have not been able to actually pay into the SIPP for several years, so I am really managing it in the same way as my funds outside the SIPP, but obviously trying to dial down on the riskier stuff in my SIPP. So as I see it, I don't see the point yet in taking out a lump sum without having a specific reason. I'd just have to park it in another useless 1% cash account in a bank. But maybe I have missed some scenarios?Rob7Lee said:
At 66 shouldn't you now be drawing it! Taking out your 25% cash tax free?PragueAddick said:
I did put some in; I set trigger index points on the way down to put more in, but I am very wary about putting in more on a monthly drip feed basis right now. If I were younger I would be more inclined to do it that way.golfaddick said:
Great that you were in cash back then, but with worldwide markets falling south of 20% I would have thought it was a great time to be going back in. I know no-one can tell you where the bottom is, or where the markets are heading, but a discount is a discount. No need to put it all in now if you feel there is more downside, but drip feeding some in wouldn't be a bad idea. Then again I'm 13 years younger than you & have another 8-10 years before I start taking mine.PragueAddick said:
I know, this is good advice, and I found myself in that position initially because switching SIPP providers turned out to be a lamentably long and untransparent process. H-L could not re- invest in an SEC fund which was the foundation of my AJ Bell SIPP (set up by an IFA) Then again as I'm now 66, being 35% in cash in March didn't seem such a bad thing!golfaddick said:I never leave cash in my SIPP.......it is always fully invested. Cash hardly ever gives a positive return & I'd rather go defensive with Bonds, Absolute return funds or alternatives than be in cash. Very rarely can you time the market.......as the past 2 months have shown.
I can't help but think that the government needs to seriously ramp up their income over the coming years, stopping tax relief on pensions or reducing it must be on the cards. I'd be getting my money out if i were able to right now as I don't trust them not to move the goal posts.......
Surely the ideal is you pop your clogs leaving 50p and a packet of Polo's, not a bucket load and some (more) to the tax man.....
Granted none of us know when we'll need it to last to, but enjoy it, you work all your life to save it.
To answer your other question, yes.....you would pay tax on the annuity.0 -
Rob7Lee said:
It was slightly tongue in cheek, as tax non-resident i've no idea what you should do! Only one piece of advice, plan how you are going to spend it. I've known far too many people (my father included) who simply wouldn't spend it.PragueAddick said:
well actually I was wondering about this, and going to ask, but before replying, (anybody) bear in mind that unlike most on the thread, I am tax non-resident in the UK. I pay UK tax but on earnings below 20k pa, and I have not been able to actually pay into the SIPP for several years, so I am really managing it in the same way as my funds outside the SIPP, but obviously trying to dial down on the riskier stuff in my SIPP. So as I see it, I don't see the point yet in taking out a lump sum without having a specific reason. I'd just have to park it in another useless 1% cash account in a bank. But maybe I have missed some scenarios?Rob7Lee said:
At 66 shouldn't you now be drawing it! Taking out your 25% cash tax free?PragueAddick said:
I did put some in; I set trigger index points on the way down to put more in, but I am very wary about putting in more on a monthly drip feed basis right now. If I were younger I would be more inclined to do it that way.golfaddick said:
Great that you were in cash back then, but with worldwide markets falling south of 20% I would have thought it was a great time to be going back in. I know no-one can tell you where the bottom is, or where the markets are heading, but a discount is a discount. No need to put it all in now if you feel there is more downside, but drip feeding some in wouldn't be a bad idea. Then again I'm 13 years younger than you & have another 8-10 years before I start taking mine.PragueAddick said:
I know, this is good advice, and I found myself in that position initially because switching SIPP providers turned out to be a lamentably long and untransparent process. H-L could not re- invest in an SEC fund which was the foundation of my AJ Bell SIPP (set up by an IFA) Then again as I'm now 66, being 35% in cash in March didn't seem such a bad thing!golfaddick said:I never leave cash in my SIPP.......it is always fully invested. Cash hardly ever gives a positive return & I'd rather go defensive with Bonds, Absolute return funds or alternatives than be in cash. Very rarely can you time the market.......as the past 2 months have shown.
I can't help but think that the government needs to seriously ramp up their income over the coming years, stopping tax relief on pensions or reducing it must be on the cards. I'd be getting my money out if i were able to right now as I don't trust them not to move the goal posts.......
Surely the ideal is you pop your clogs leaving 50p and a packet of Polo's, not a bucket load and some (more) to the tax man.....
Granted none of us know when we'll need it to last to, but enjoy it, you work all your life to save it.Spot on. But, an opened, half-eaten packet of Polos!We intend to massively front load spending our retirement funds while still relatively young to enjoy it. Plus financial help to our sons now, when they need it to become established, rather than on our passing by which time they will have less need for it and have to give the tax man his cut anyway. Just need to make sure I live for another 7 years!0 -
I meant that maybe I should do as @Rob7Lee suggests and take my 25% drawdown allowance, rsther than keep all the SIPP as it is, and eventually convert it all to an annuity.golfaddick said:
Not quite sure I understand you @PragueAddick. Why would you take out the 25% but keep it in the SIPP. ? As cash I presume ?. Not sure if that would be allowed......never heard if it before & cant see any point. Once you take any money out you effectively Crystalise the fund & a BCE takes place.PragueAddick said:
I was thinking about this again today, and maybe there is a basic rationale to taking drawdown which applies to everyone on the thread - but do tell me if I've got this right. If I take out 25% that is tax free. But if I keep it in the SIPP, and then eventually get an annuity, I will be paying income tax on the annuity payments??Rob7Lee said:
It was slightly tongue in cheek, as tax non-resident i've no idea what you should do! Only one piece of advice, plan how you are going to spend it. I've known far too many people (my father included) who simply wouldn't spend it.PragueAddick said:
well actually I was wondering about this, and going to ask, but before replying, (anybody) bear in mind that unlike most on the thread, I am tax non-resident in the UK. I pay UK tax but on earnings below 20k pa, and I have not been able to actually pay into the SIPP for several years, so I am really managing it in the same way as my funds outside the SIPP, but obviously trying to dial down on the riskier stuff in my SIPP. So as I see it, I don't see the point yet in taking out a lump sum without having a specific reason. I'd just have to park it in another useless 1% cash account in a bank. But maybe I have missed some scenarios?Rob7Lee said:
At 66 shouldn't you now be drawing it! Taking out your 25% cash tax free?PragueAddick said:
I did put some in; I set trigger index points on the way down to put more in, but I am very wary about putting in more on a monthly drip feed basis right now. If I were younger I would be more inclined to do it that way.golfaddick said:
Great that you were in cash back then, but with worldwide markets falling south of 20% I would have thought it was a great time to be going back in. I know no-one can tell you where the bottom is, or where the markets are heading, but a discount is a discount. No need to put it all in now if you feel there is more downside, but drip feeding some in wouldn't be a bad idea. Then again I'm 13 years younger than you & have another 8-10 years before I start taking mine.PragueAddick said:
I know, this is good advice, and I found myself in that position initially because switching SIPP providers turned out to be a lamentably long and untransparent process. H-L could not re- invest in an SEC fund which was the foundation of my AJ Bell SIPP (set up by an IFA) Then again as I'm now 66, being 35% in cash in March didn't seem such a bad thing!golfaddick said:I never leave cash in my SIPP.......it is always fully invested. Cash hardly ever gives a positive return & I'd rather go defensive with Bonds, Absolute return funds or alternatives than be in cash. Very rarely can you time the market.......as the past 2 months have shown.
I can't help but think that the government needs to seriously ramp up their income over the coming years, stopping tax relief on pensions or reducing it must be on the cards. I'd be getting my money out if i were able to right now as I don't trust them not to move the goal posts.......
Surely the ideal is you pop your clogs leaving 50p and a packet of Polo's, not a bucket load and some (more) to the tax man.....
Granted none of us know when we'll need it to last to, but enjoy it, you work all your life to save it.
To answer your other question, yes.....you would pay tax on the annuity.
What´s a BCE?
Since over 25% of my SIPP is already in cash at present, presumably I can just draw from that chunk and leave the invested part?0 -
I’m assuming that last bit is correct. When I drew my 25% they had to sell stuff to raise the cash but if you already have enough in cash then what would be the point?PragueAddick said:
I meant that maybe I should do as @Rob7Lee suggests and take my 25% drawdown allowance, rsther than keep all the SIPP as it is, and eventually convert it all to an annuity.golfaddick said:
Not quite sure I understand you @PragueAddick. Why would you take out the 25% but keep it in the SIPP. ? As cash I presume ?. Not sure if that would be allowed......never heard if it before & cant see any point. Once you take any money out you effectively Crystalise the fund & a BCE takes place.PragueAddick said:
I was thinking about this again today, and maybe there is a basic rationale to taking drawdown which applies to everyone on the thread - but do tell me if I've got this right. If I take out 25% that is tax free. But if I keep it in the SIPP, and then eventually get an annuity, I will be paying income tax on the annuity payments??Rob7Lee said:
It was slightly tongue in cheek, as tax non-resident i've no idea what you should do! Only one piece of advice, plan how you are going to spend it. I've known far too many people (my father included) who simply wouldn't spend it.PragueAddick said:
well actually I was wondering about this, and going to ask, but before replying, (anybody) bear in mind that unlike most on the thread, I am tax non-resident in the UK. I pay UK tax but on earnings below 20k pa, and I have not been able to actually pay into the SIPP for several years, so I am really managing it in the same way as my funds outside the SIPP, but obviously trying to dial down on the riskier stuff in my SIPP. So as I see it, I don't see the point yet in taking out a lump sum without having a specific reason. I'd just have to park it in another useless 1% cash account in a bank. But maybe I have missed some scenarios?Rob7Lee said:
At 66 shouldn't you now be drawing it! Taking out your 25% cash tax free?PragueAddick said:
I did put some in; I set trigger index points on the way down to put more in, but I am very wary about putting in more on a monthly drip feed basis right now. If I were younger I would be more inclined to do it that way.golfaddick said:
Great that you were in cash back then, but with worldwide markets falling south of 20% I would have thought it was a great time to be going back in. I know no-one can tell you where the bottom is, or where the markets are heading, but a discount is a discount. No need to put it all in now if you feel there is more downside, but drip feeding some in wouldn't be a bad idea. Then again I'm 13 years younger than you & have another 8-10 years before I start taking mine.PragueAddick said:
I know, this is good advice, and I found myself in that position initially because switching SIPP providers turned out to be a lamentably long and untransparent process. H-L could not re- invest in an SEC fund which was the foundation of my AJ Bell SIPP (set up by an IFA) Then again as I'm now 66, being 35% in cash in March didn't seem such a bad thing!golfaddick said:I never leave cash in my SIPP.......it is always fully invested. Cash hardly ever gives a positive return & I'd rather go defensive with Bonds, Absolute return funds or alternatives than be in cash. Very rarely can you time the market.......as the past 2 months have shown.
I can't help but think that the government needs to seriously ramp up their income over the coming years, stopping tax relief on pensions or reducing it must be on the cards. I'd be getting my money out if i were able to right now as I don't trust them not to move the goal posts.......
Surely the ideal is you pop your clogs leaving 50p and a packet of Polo's, not a bucket load and some (more) to the tax man.....
Granted none of us know when we'll need it to last to, but enjoy it, you work all your life to save it.
To answer your other question, yes.....you would pay tax on the annuity.
What´s a BCE?
Since over 25% of my SIPP is already in cash at present, presumably I can just draw from that chunk and leave the invested part?1 -
BCE - Benefit Crystallisation Event, I assume.PragueAddick said:
I meant that maybe I should do as @Rob7Lee suggests and take my 25% drawdown allowance, rsther than keep all the SIPP as it is, and eventually convert it all to an annuity.golfaddick said:
Not quite sure I understand you @PragueAddick. Why would you take out the 25% but keep it in the SIPP. ? As cash I presume ?. Not sure if that would be allowed......never heard if it before & cant see any point. Once you take any money out you effectively Crystalise the fund & a BCE takes place.PragueAddick said:
I was thinking about this again today, and maybe there is a basic rationale to taking drawdown which applies to everyone on the thread - but do tell me if I've got this right. If I take out 25% that is tax free. But if I keep it in the SIPP, and then eventually get an annuity, I will be paying income tax on the annuity payments??Rob7Lee said:
It was slightly tongue in cheek, as tax non-resident i've no idea what you should do! Only one piece of advice, plan how you are going to spend it. I've known far too many people (my father included) who simply wouldn't spend it.PragueAddick said:
well actually I was wondering about this, and going to ask, but before replying, (anybody) bear in mind that unlike most on the thread, I am tax non-resident in the UK. I pay UK tax but on earnings below 20k pa, and I have not been able to actually pay into the SIPP for several years, so I am really managing it in the same way as my funds outside the SIPP, but obviously trying to dial down on the riskier stuff in my SIPP. So as I see it, I don't see the point yet in taking out a lump sum without having a specific reason. I'd just have to park it in another useless 1% cash account in a bank. But maybe I have missed some scenarios?Rob7Lee said:
At 66 shouldn't you now be drawing it! Taking out your 25% cash tax free?PragueAddick said:
I did put some in; I set trigger index points on the way down to put more in, but I am very wary about putting in more on a monthly drip feed basis right now. If I were younger I would be more inclined to do it that way.golfaddick said:
Great that you were in cash back then, but with worldwide markets falling south of 20% I would have thought it was a great time to be going back in. I know no-one can tell you where the bottom is, or where the markets are heading, but a discount is a discount. No need to put it all in now if you feel there is more downside, but drip feeding some in wouldn't be a bad idea. Then again I'm 13 years younger than you & have another 8-10 years before I start taking mine.PragueAddick said:
I know, this is good advice, and I found myself in that position initially because switching SIPP providers turned out to be a lamentably long and untransparent process. H-L could not re- invest in an SEC fund which was the foundation of my AJ Bell SIPP (set up by an IFA) Then again as I'm now 66, being 35% in cash in March didn't seem such a bad thing!golfaddick said:I never leave cash in my SIPP.......it is always fully invested. Cash hardly ever gives a positive return & I'd rather go defensive with Bonds, Absolute return funds or alternatives than be in cash. Very rarely can you time the market.......as the past 2 months have shown.
I can't help but think that the government needs to seriously ramp up their income over the coming years, stopping tax relief on pensions or reducing it must be on the cards. I'd be getting my money out if i were able to right now as I don't trust them not to move the goal posts.......
Surely the ideal is you pop your clogs leaving 50p and a packet of Polo's, not a bucket load and some (more) to the tax man.....
Granted none of us know when we'll need it to last to, but enjoy it, you work all your life to save it.
To answer your other question, yes.....you would pay tax on the annuity.
What´s a BCE?
Since over 25% of my SIPP is already in cash at present, presumably I can just draw from that chunk and leave the invested part?
To me, at your age
the only benefit to not taking the 25% tax free lump now is if you don't need it, any further growth/profit remains tax free whilst in the SIPP. But yes if at some point you start to drawdown enough annually to exceed the tax free allowance then you'll be paying tax on it. It very much depends on your personal circumstances (amount you are likely to draw) and tax situation as always........ I'm probably less help to you as not a resident/uk tax payer.
This is part of the reason I pay little into my own pension now, trying to equal up my wife's so at least she can draw as a minimum the tax free allowance amount as soon as she hits the right age. No point me paying 40% tax and her nothing......
@bobmunro I saw my grandfather hoard his many pounds, to the extent that the IHT bill was well over half a million, that was fun as they would release probable until a deposit of the IHT due was paid and you couldn't use the deceased's money.... and don't even get me onto his refusal to ever help anyone financially, making my mum pawn her engagement ring for one when they needed cash! Being hot head back then I refused my inheritance...... guess I still got nearly half of it anyway when my mum died
Then to a lesser extent but broadly the same my parents followed suit, fortunately I managed to just keep the estate just under the IHT limit back then which of course are generous now (well currently anyway).
I've passed on what I can already (deed of variation) to my kids and will continue to do so as and when I can/is right, by the time my parents passed I didn't 'need' the inheritance, could well have done with some help 25+ years ago though when living in a bedsit in Bethnal Green!
Keep an eye on the 7 year rule, as there is a catch, it falls to the end of the estate if you die, so if the remainder exceeds the limit theres no relief for what you gave away if not completed the 7 years.
No point being the richest person in the graveyard as they say, I can't wait (and hope) to spend the lot on women (my wife and daughters of course!) fast cars (probably be electric by then) and sunnier places.0 -
Just a couple of thoughts!
A typical care home costs about £50,000 - 60,000 per year. Not so easy to find if you're a "skier". Of course, you can rely on the state or your children to sort something out for you....
Everyone scrambling to avoid paying IHT "at all costs" seems strange when we all agree that the NHS deserves seriously more cash! I hope to leave as much as I can to the Royal Marsden to repay a debt which simply cannot be repaid with money alone. But I would prefer they didn't have to rely on my charity (which fortunately would also reduce any IHT due!).
0 -
The NHS shouldn’t be funded via inheritance tax !!
There is nothing wrong in wanting your family to benefit as much as possible from money you have carefully saved through your life.6
