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Savings and Investments thread
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Thanks @golfaddick. I would like to show the split of my current portfolio but I need first to check if Trustnet includes all the cash holdings I have listed in the same portfolio, because if so, it will distort the % split. Do you happen to know? I can drop them a line.0
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My Portfolio X-Ray as Fidelity call it in April so changed a bit since then;
Stocks 54.44%
Bonds 32.92%
Cash 5.81%
Other 6.83%
Country Exposure;United Kingdom 39.95%
United States 29.77%
Japan 8.26%
Canada 2.54%
Switzerland 2.50%
France 1.89%
Hong Kong 1.80%
China 1.67%
Australia 1.59%
Netherlands 1.26%
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Lloyds bank almost even now at 36.54Rob7Lee said:Just looked back at my 13th March share tip's......
1. Go-Ahead Group - 1,016 now 1,115 - up 9.75%
2. BAT 2,678 now 3,201 - up 19.5%
3. Lloyds Bank 37.89 now 31.92 - down 15.76%
4. PMO (if they drop back to sub 15p, risky though) 16.01 now 30.57 - up 90.9%
5. Tullow Oil (if you wish to potentially lose everything or double your money) 10.92 now 24.58 - up 125%
6. Greggs (everyone loves a sausage roll) 1,660 now 1,826 - up 10%
So 5 out of 6 not bad.....
Tullow oil flying at 36.47, is that about 350% up?
PMO also now 47.35
Go Ahead 1,2400 -
Any "new" tips to keep an eye on?0
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I'll have a look but nothing jumping out right now.1
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+33% since 10 May :-)ROTW said:Would you clever people consider the construction industry being a strong buy following the earlier announcement?
The UK homebuilders especially?Also looking at SIG PLC.
Strong balance sheet when cash in the bank has its advantages.1 -
Sorry If I may a quick question on a pension. I understand when you drawdown on a pension pot the initial 25% is tax free. So for example if I had a pot of 400,000 I would get 100,000 tax free. If then the following year I withdrew 11,000 which is under the personal tax threshold would I have to pay any tax on this?I realise things can change tax rules thresholds etc but was having a chat with a friend yesterday and we had differing opinions.If someone could confirm would be greatly appreciated
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MStuartPerm said:Sorry If I may a quick question on a pension. I understand when you drawdown on a pension pot the initial 25% is tax free. So for example if I had a pot of 400,000 I would get 100,000 tax free. If then the following year I withdrew 11,000 which is under the personal tax threshold would I have to pay any tax on this?I realise things can change tax rules thresholds etc but was having a chat with a friend yesterday and we had differing opinions.If someone could confirm would be greatly appreciated
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You would not pay tax on the £11,000 either as long as you had no other income (including State Pension).
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Thanks I am guessing above the personal Allowance you would pay at the tax rate.bobmunro said:MStuartPerm said:Sorry If I may a quick question on a pension. I understand when you drawdown on a pension pot the initial 25% is tax free. So for example if I had a pot of 400,000 I would get 100,000 tax free. If then the following year I withdrew 11,000 which is under the personal tax threshold would I have to pay any tax on this?I realise things can change tax rules thresholds etc but was having a chat with a friend yesterday and we had differing opinions.If someone could confirm would be greatly appreciated
thanks
You would not pay tax on the £11,000 either as long as you had no other income (including State Pension).Appreciate your help0 -
You would yes,MStuartPerm said:
Thanks I am guessing above the personal Allowance you would pay at the tax rate.bobmunro said:MStuartPerm said:Sorry If I may a quick question on a pension. I understand when you drawdown on a pension pot the initial 25% is tax free. So for example if I had a pot of 400,000 I would get 100,000 tax free. If then the following year I withdrew 11,000 which is under the personal tax threshold would I have to pay any tax on this?I realise things can change tax rules thresholds etc but was having a chat with a friend yesterday and we had differing opinions.If someone could confirm would be greatly appreciated
thanks
You would not pay tax on the £11,000 either as long as you had no other income (including State Pension).Appreciate your help1 - Sponsored links:
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Personal allowance is now £12,500.
I would also add that just because you can take 25% out tax-free the question is should you, especially if it's all in one go. Obviously if you have big debts or an interest only mortgage then it probably makes sense, but not just to leave it sitting in a deposit account.
Also, even if you take out less than the PA you might be deducted tax on it from the Pension provider. They won't know what other income you have (unless they have details of your tax code)& so by law they have to deduct basic rate tax at source. You will then have to claim the tax back by your annual Self Assesment.0 -
It may be taxed at source, but you just claim it back from the IR.MStuartPerm said:Sorry If I may a quick question on a pension. I understand when you drawdown on a pension pot the initial 25% is tax free. So for example if I had a pot of 400,000 I would get 100,000 tax free. If then the following year I withdrew 11,000 which is under the personal tax threshold would I have to pay any tax on this?I realise things can change tax rules thresholds etc but was having a chat with a friend yesterday and we had differing opinions.If someone could confirm would be greatly appreciated
thanks
My aim is to withdraw all my wife's Stakeholder pension without paying any tax.
We're half way there.0 -
If you draw down less than 25% and live of that for a few years. What can you take out at a later date? Just the balance of 25% of the original amount? Or, if your pot has grown, or shrunk, in that time, is it of the new balance?0
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It is based on your pension pot at that time. So, as I alluded to earlier, if you don't need the full 25% then it's best to leave it & (hopefully) it will grow a bit more until you do need full access of the 25%. Obviously it could fall during that time, but all things being equal, over a period of say 3-5 years it should grow. I've got clients where their pension pot is more than it was at first crystallisation, and they have taken out around 15%-20%.......all tax free.Hornchurch said:If you draw down less than 25% and live of that for a few years. What can you take out at a later date? Just the balance of 25% of the original amount? Or, if your pot has grown, or shrunk, in that time, is it of the new balance?0 -
just so I have understood this correctly. my pot is say 400k so I draw down 25% (100k) leaving 300k. six years later my pot is worth 450k so I can draw down a further 25% of 50k?
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I don't think it quite works like that or as straight forward, but Golfie will confirm. i think you have move it to an uncrystalised account whereby each withdrawal you receive 25% tax free.
An added potential problem of taking the 25% if you aren't going to spend it is of course IHT as it would form part of your overall estate.0 -
I will be interested in Golfies reply. My understanding is if you took the £100,000 from your £400,000 pot that is it you have had 25%, and can not return to the pot for another go, even if Remaining Pot value increases.
However, if you took 12.5% as first withdrawal from your £400,000 you’d get £50,000. If you came back 5 years later and asked for the other 12.5% if your pot had increased to £600,000. You’d get £75,000 being 12.5% of the pot.So doesn’t matter about pot value, it’s the percentage which can not ever exceed 25%. It’s for this reason that people take an annual drawdown amount, with only 25% of that annual sum being taken tax free. Thereby increasing their final Tax Free amount to being Potentially being greater than 25% of their original pension pot.IS THIS CORRECT ?0 -
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@RaplhMilne This is always a good site; https://www.pensionwise.gov.uk/en/browse/taking-your-pension-money
In essence I think you are right, if you don't take the full 25% up front cash free then it is 25% of every draw down that is tax free.
What I don't think you can do is keep taking lump sums regardless of keeping within 25% of your pot and it all being tax free, it'll be 25/75.0 -
Yep, that's about right. It's a bit more technical should your pot be above the Lifetime Allowance as you can only draw 25% tax free of the LA & not your 25% of your whole pot.RaplhMilne said:I will be interested in Golfies reply. My understanding is if you took the £100,000 from your £400,000 pot that is it you have had 25%, and can not return to the pot for another go, even if Remaining Pot value increases.
However, if you took 12.5% as first withdrawal from your £400,000 you’d get £50,000. If you came back 5 years later and asked for the other 12.5% if your pot had increased to £600,000. You’d get £75,000 being 12.5% of the pot.So doesn’t matter about pot value, it’s the percentage which can not ever exceed 25%. It’s for this reason that people take an annual drawdown amount, with only 25% of that annual sum being taken tax free. Thereby increasing their final Tax Free amount to being Potentially being greater than 25% of their original pension pot.IS THIS CORRECT ?
@Rob7Lee is correct in saying that to take any of the tax free element then 4x that amount needs to go into a separate "account". So in the example of a £400k pot, if you wanted to take out £50k tax free( ie, half of your 25% allowance) then £200k would be crystallised. The remaining £200k would be left uncrystalised & if this grew to £300k over the next few years & you then wanted to take the remaining half of your TFC allowance then you would be able to take £75k.0 - Sponsored links:
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No. Once you've taken the full 25% you can't take anymore. Hence why I said up thread that if you dont need the full 25% then dont take it all in one go as if you leave the money still in the pension then you potentially have access to a greater tax free lump sum later.LargeAddick said:just so I have understood this correctly. my pot is say 400k so I draw down 25% (100k) leaving 300k. six years later my pot is worth 450k so I can draw down a further 25% of 50k?0 -
All thanks for your input I really appreciate it.I have been putting into a pension for a while and whilst I have a few years to go it’s not that many. I was talking to a friend and he told me that he had been told he would need to pay tax on it all after the 25% I didn’t think this was the case but I wasn’t sure.
I have a while to go but appreciate the knowledge GA.0 -
It may well be terminology, after the 25% it all becomes taxable when you draw it, subject to the personal allowance so depends on other income and what the prevailing personal allowance is at any given tax year. I can see the personal allowance drifting backwards, it's already gone for the higher earners.MStuartPerm said:All thanks for your input I really appreciate it.I have been putting into a pension for a while and whilst I have a few years to go it’s not that many. I was talking to a friend and he told me that he had been told he would need to pay tax on it all after the 25% I didn’t think this was the case but I wasn’t sure.
I have a while to go but appreciate the knowledge GA.
With the state pension being over 9k now it doesn't leave much of any private pension that will remain tax free upon state pension age anyway.0 -
Many moons ago I signed up here, and spelt Ralph .... Ralph. As it was a bit like the great man himself, who never did anything right, iv let it ride, in tribute.Addickted said:0 -
Rob7Lee said:
It may well be terminology, after the 25% it all becomes taxable when you draw it, subject to the personal allowance so depends on other income and what the prevailing personal allowance is at any given tax year. I can see the personal allowance drifting backwards, it's already gone for the higher earners.All thanks for your input I really appreciate it.I have been putting into a pension for a while and whilst I have a few years to go it’s not that many. I was talking to a friend and he told me that he had been told he would need to pay tax on it all after the 25% I didn’t think this was the case but I wasn’t sure.
I have a while to go but appreciate the knowledge GA.
With the state pension being over 9k now it doesn't leave much of any private pension that will remain tax free upon state pension age anyway.According to my HMRC account, my state pension forecast is £11,940 (£995 pm). Pretty sure that's the max based on 40 years of contributions. So pretty much the existing personal allowance (I wish!).Moving the personal allowance back to less than the state pension would be somewhat resisted I would suggest.0 -
Depends if they get rid of the triple lock!! I can very much see it being frozen for a fair while.0
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Rob7Lee said:Depends if they get rid of the triple lock!! I can very much see it being frozen for a fair while.
You may be right, but I cannot really imagine the government (especially a tory government) would hit the state pension - too many votes at stake. Income tax rates will be raised before they remove the triple lock, or VAT increased to maybe 25 or 30%.
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thanks again for all the info from all that have replied.
i must admit I have worked on the assumption I will get sod all for the state pension, anything would be a bonus. Still I expect it will be up past 70 soon!0 -
MStuartPerm said:thanks again for all the info from all that have replied.
i must admit I have worked on the assumption I will get sod all for the state pension, anything would be a bonus. Still I expect it will be up past 70 soon!
I'm currently due at 66 (3 years) - I don't expect that to remain the same and will likely go to 68 or even 70. Anyone say in their 40s now will likely never draw a state pension.
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I don't agree. The state pension will be around age 70 for anyone starting work now but it will never be erased. That would be political suicide.........and there are still millions of people who don't save towards a pension. Although they are compulsory for employees (and then you gave a right to opt out after 3 months) there are 5m self employed people & many dont save towards a pension.bobmunro said:MStuartPerm said:thanks again for all the info from all that have replied.
i must admit I have worked on the assumption I will get sod all for the state pension, anything would be a bonus. Still I expect it will be up past 70 soon!
I'm currently due at 66 (3 years) - I don't expect that to remain the same and will likely go to 68 or even 70. Anyone say in their 40s now will likely never draw a state pension.1
