Medium term, I'm afraid. The analysts I follow have been right about this market for months, even the rallies, and they've been promising this would happen somehow and sometime. CPI tomorrow could give a big relief rally. Or it could be the final kick in the bollocks.
Either way, sooner or later, people are going to extrapolate all this debt and conclude the recession really is coming this time. House and car markets in the US are deteriorating rapidly.
Blimy, this is not looking good, a sea of red the last couple days. So SVB is followed by Signature Bank is there more to come.
Those who no more than me, can you explain why this hitting the FTSE so hard, and especially financials. Lloyds is almost 100% Uk retail based, so why are their shares plummeting. Surely they are not likely to be exposed to either of these banks and or their account holding customers….. ?
Blimy, this is not looking good, a sea of red the last couple days. So SVB is followed by Signature Bank is there more to come.
Those who no more than me, can you explain why this hitting the FTSE so hard, and especially financials. Lloyds is almost 100% Uk retail based, so why are their shares plummeting. Surely they are not likely to be exposed to either of these banks and or their account holding customers….. ?
Think investors are anticipating higher costs/lower profitability coming down the pipe for all global banks as a result of the issues in the US (eg higher capital requirements just like post-2008).
Budget leaks from The Government/Teeasury saying the Lifetime Allowance will be increased to £1.8m and the Annual Allowance increased to £60k.
Mainly due to the Government trying to lure the early retirees back into work as many retired/took their pension early and are now not working when the economy needs a boost.
Sectors it has affected the most includes the NHS with many Doctors having to retire/ take their pensions before 60 due to excess tax charges.
Yes, the same NHS where Doctors are currently on strike for more pay !!!
A tip for the longer term for those who are happy to tie some of their their money up in a savings account rather than the stock market.
Open an account with the Coventry and Yorkshire Building Societies. Once you've had the account for a year, you are eligible for the loyalty accounts both societies offer on a fairly regular basis.
The accounts usually pay a near market best rate of interest, if not the best. Yorkshire, for example , have just launched a loyalty ISA where you can take money out 6 times a year that pays 4% up to £20k and £3.5% on anything over £20k. Those rates by far the best available at the moment for what is a near instant access ISA.
Budget leaks from The Government/Teeasury saying the Lifetime Allowance will be increased to £1.8m and the Annual Allowance increased to £60k.
Mainly due to the Government trying to lure the early retirees back into work as many retired/took their pension early and are now not working when the economy needs a boost.
Sectors it has affected the most includes the NHS with many Doctors having to retire/ take their pensions before 60 due to excess tax charges.
Yes, the same NHS where Doctors are currently on strike for more pay !!!
Oh, the irony.
But then those doctors that are striking are the young ones that are on £14.09 an hour. Those that have retired probably didn't have to carry the sort of debt that new recruits do when qualifying nowadays and many of those that have retired have had the benefit of private work to enhance their retirement pot too. It will be interesting to see quite how many will be persuaded to come out of retirement.
Budget leaks from The Government/Teeasury saying the Lifetime Allowance will be increased to £1.8m and the Annual Allowance increased to £60k.
Mainly due to the Government trying to lure the early retirees back into work as many retired/took their pension early and are now not working when the economy needs a boost.
Sectors it has affected the most includes the NHS with many Doctors having to retire/ take their pensions before 60 due to excess tax charges.
Yes, the same NHS where Doctors are currently on strike for more pay !!!
nice to hear the rich can get richer in order to try and inflate this bubble more.
It's an interesting one, as Golfie says a lot of people thought what's the point in still working etc when I'm going to get stung for 55% tax. I've always been of the view the day you pay more than 50% tax is a day when many will go 'sod that'.
The LTA has reduced over time, from memory it came in, in 2006 at 1.5m so in todays terms would be circa 2.4m.
Those with Final salaries can be hammered, my mate who was a copper when he was promoted to inspector with about a £5k salary increase initially had a £6k pension tax charge!
Plus I suspect changes like this, if they do happen, will be a route to making state pension means tested, clearly not so good!
Interesting thing about the changes to the LTA (and will have to see the detail tomorrow) but if you've already taken a pension since 2006 then you will have already used up a % of your LTA......some Doctors I know have used up 100%+ of theirs. That means they have no more spare even if the LTA increases by £600k.
Have topped up a couple of SIPP holdings on the dip, Aviva and Tate. I see these as decent holds, with a chunky dividend from Aviva. Keeping a close eye though, it's a fragile market.
Interesting thing about the changes to the LTA (and will have to see the detail tomorrow) but if you've already taken a pension since 2006 then you will have already used up a % of your LTA......some Doctors I know have used up 100%+ of theirs. That means they have no more spare even if the LTA increases by £600k.
That won't get them back working!!
I wonder if it's as much to stop/make think the next set of retiree's in their 50's than it is to get back to work those already retired.
Not sure when that comes in (assume from April 6th) and not sure how that would affect anyone who has already taken pension benefits & have a LTA %.
He would need to scrap the MPAA for it to make any significant difference..
So, what's the difference between the 2 then? I've Googled both and they seem to be saying the same thing from the perspective of the amount of tax payable based on the value of your pension pot?!
Not sure when that comes in (assume from April 6th) and not sure how that would affect anyone who has already taken pension benefits & have a LTA %.
He would need to scrap the MPAA for it to make any significant difference..
So, what's the difference between the 2 then? I've Googled both and they seem to be saying the same thing from the perspective of the amount of tax payable based on the value of your pension pot?!
It was in reply to Golfie.
The MPAA kicks in once you've started to draw down a pension. The current annual limit for contributions to get tax relief on is £40k (now rising to £60k). But if the MPAA kicks in that is (currently) reduced to £4k - it makes no sense to pay into a pension pot without the tax relief on contributions and if the MPAA stays as is then it is less likely to attract those already retired and drawing money from returning to work.
Comments
Either way, sooner or later, people are going to extrapolate all this debt and conclude the recession really is coming this time. House and car markets in the US are deteriorating rapidly.
Those who no more than me, can you explain why this hitting the FTSE so hard, and especially financials. Lloyds is almost 100% Uk retail based, so why are their shares plummeting. Surely they are not likely to be exposed to either of these banks and or their account holding customers….. ?
Bitcoin looking good today too.
Mainly due to the Government trying to lure the early retirees back into work as many retired/took their pension early and are now not working when the economy needs a boost.
Sectors it has affected the most includes the NHS with many Doctors having to retire/ take their pensions before 60 due to excess tax charges.
Yes, the same NHS where Doctors are currently on strike for more pay !!!
Oh, the irony.
Open an account with the Coventry and Yorkshire Building Societies. Once you've had the account for a year, you are eligible for the loyalty accounts both societies offer on a fairly regular basis.
The accounts usually pay a near market best rate of interest, if not the best. Yorkshire, for example , have just launched a loyalty ISA where you can take money out 6 times a year that pays 4% up to £20k and £3.5% on anything over £20k. Those rates by far the best available at the moment for what is a near instant access ISA.
The LTA has reduced over time, from memory it came in, in 2006 at 1.5m so in todays terms would be circa 2.4m.
Those with Final salaries can be hammered, my mate who was a copper when he was promoted to inspector with about a £5k salary increase initially had a £6k pension tax charge!
Plus I suspect changes like this, if they do happen, will be a route to making state pension means tested, clearly not so good!
That won't get them back working!!
Not sure when that comes in (assume from April 6th) and not sure how that would affect anyone who has already taken pension benefits & have a LTA %.
Meanwhile, Credit Suisse is in free fall.
The MPAA kicks in once you've started to draw down a pension. The current annual limit for contributions to get tax relief on is £40k (now rising to £60k). But if the MPAA kicks in that is (currently) reduced to £4k - it makes no sense to pay into a pension pot without the tax relief on contributions and if the MPAA stays as is then it is less likely to attract those already retired and drawing money from returning to work.