Need a bit of advice, I came into some inheritance recently that I've spoken to a financial advisor and it's now invested through them. It's above the ISA threshold so is split between stocks and shares ISA and a standard investment account.
I'll be getting some more soon and trying to figure out what best to do. I have a workplace pension so is it worth topping that up? A SIPP? Is it sensible to speak to another FA and invest through them just to spread the risk or go through the existing one?
Need a bit of advice, I came into some inheritance recently that I've spoken to a financial advisor and it's now invested through them. It's above the ISA threshold so is split between stocks and shares ISA and a standard investment account.
I'll be getting some more soon and trying to figure out what best to do. I have a workplace pension so is it worth topping that up? A SIPP? Is it sensible to speak to another FA and invest through them just to spread the risk or go through the existing one?
Age, income tax position (i.e. 20/40/45%). Also will depend on overall sums, looks/sounds like you are heavily into Stocks & Shares with the last chunk, maybe consider a bit in cash, premium bonds, make sure you top up your ISA each year. But will depend on overall holdings and what you currently have. Pension is sensible from a tax perspective but again depending on age you are tying up to at least 57.
out at 57p, for once it was good for the train to be delayed 😂
watch it fly higher now, but I’ll take nearly £5.5k profit in a few days thanks.
Better than a second job!!!
That made me chuckle!! 😂
My main SIPP seems to be making more than my main job currently, role on retirement!!
Out of curiosity, do you have magic formula for calculating the right number needed for retirement?
This is something I’m giving a lot of thought to right now but seems to be many differing approaches from the material I read
Don't know about Magic and there's no one size fits all, but I've worked on the basis that we (wife and I) want 70% of our annual salaries up to age 75 then dropping to 50-60% thereafter with a bit of an increase each year. So just did a spreadsheet on that remembering to reduce private pension at 67/68 or whenever you get your state pension. I have investments outside of pension also and been filling my wife's so her pension especially with state will be double her current salary.
As a SIPP I'll leave invested once in drawdown so also I've assumed a very low rate of growth once retired (1.5%) as will de-risk a lot.
That's a key point. Many people plan their retirement having a constant income for the rest of their lives (guessing what that will be of course) whereas front loading for the 'golden years' of maybe mid 60s to mid 70s is certainly our plan.
Another factor that impacts on the level of retirement income is saving. You spend your working life using a fair chunk of your income for savings, investments and pensions - retirement is for spending those savings! For example, if you are fortunate enough to save 30% of your net income when working that means that on retirement you can cut your income to 70% and maintain the exact same lifestyle.
Our plan is that our children inherit property, not cash, because we plan to spend it all!
Exactly that for me to, I'll help mine onto the ladder but after that have told them to expect half the house when we pop our clogs but nothing else at that point!
Need a bit of advice, I came into some inheritance recently that I've spoken to a financial advisor and it's now invested through them. It's above the ISA threshold so is split between stocks and shares ISA and a standard investment account.
I'll be getting some more soon and trying to figure out what best to do. I have a workplace pension so is it worth topping that up? A SIPP? Is it sensible to speak to another FA and invest through them just to spread the risk or go through the existing one?
Age, income tax position (i.e. 20/40/45%). Also will depend on overall sums, looks/sounds like you are heavily into Stocks & Shares with the last chunk, maybe consider a bit in cash, premium bonds, make sure you top up your ISA each year. But will depend on overall holdings and what you currently have. Pension is sensible from a tax perspective but again depending on age you are tying up to at least 57.
Any debts?
39 40%. Yeah so the plan from the FA is to transfer from the investment account into my stocks and shares ISA each year so that relief is gone. I bought some premium bonds recently but only a small amount so could do that. Just a mortgage no other debt.
Need a bit of advice, I came into some inheritance recently that I've spoken to a financial advisor and it's now invested through them. It's above the ISA threshold so is split between stocks and shares ISA and a standard investment account.
I'll be getting some more soon and trying to figure out what best to do. I have a workplace pension so is it worth topping that up? A SIPP? Is it sensible to speak to another FA and invest through them just to spread the risk or go through the existing one?
Age, income tax position (i.e. 20/40/45%). Also will depend on overall sums, looks/sounds like you are heavily into Stocks & Shares with the last chunk, maybe consider a bit in cash, premium bonds, make sure you top up your ISA each year. But will depend on overall holdings and what you currently have. Pension is sensible from a tax perspective but again depending on age you are tying up to at least 57.
Any debts?
39 40%. Yeah so the plan from the FA is to transfer from the investment account into my stocks and shares ISA each year so that relief is gone. I bought some premium bonds recently but only a small amount so could do that. Just a mortgage no other debt.
Unless you are confident in achieving a greater return on investment than your mortgage rate, consistently, then my advice generally is to pay that down. With less monthly outgoing on a mortgage you can then use the additional income to invest/save/top up pension etc or reduce your mortgage term.
An alternative, is max out your pension and take advantage of that tax relief and in 17/18 years time take the cash free element to pay off your mortgage, but that takes some planning and likely you'd only want an interest only mortgage and not without risk as who knows what the pension landscape will look like in 18 years time and you need to consider likely overall pot size. But can be very tax efficient, as I've said a couple of times on here, getting 40% relief on additional pension contributions means in broad terms the government pays off 40% of your mortgage for you.
All in it's about making the best use of what you have, another mortgage consideration could be to switch to an offset mortgage and offset cash savings (inheritance) to either pay it off quicker by maintaining the same monthly payment or reducing payment to keep the same term but have more disposable income.
Lastly, don't forget that you can actually spend some! I learnt from parents/grand parents/in laws that life can be short with them dying between the ages of 41 and 75. So whilst of course it's right to plan on the basis you hopefully live to a ripe old age, don't have regrets in years to come about not doing something you really wanted to.
It's a balance, and a nice problem to have, good luck!
Need a bit of advice, I came into some inheritance recently that I've spoken to a financial advisor and it's now invested through them. It's above the ISA threshold so is split between stocks and shares ISA and a standard investment account.
I'll be getting some more soon and trying to figure out what best to do. I have a workplace pension so is it worth topping that up? A SIPP? Is it sensible to speak to another FA and invest through them just to spread the risk or go through the existing one?
Age, income tax position (i.e. 20/40/45%). Also will depend on overall sums, looks/sounds like you are heavily into Stocks & Shares with the last chunk, maybe consider a bit in cash, premium bonds, make sure you top up your ISA each year. But will depend on overall holdings and what you currently have. Pension is sensible from a tax perspective but again depending on age you are tying up to at least 57.
Any debts?
39 40%. Yeah so the plan from the FA is to transfer from the investment account into my stocks and shares ISA each year so that relief is gone. I bought some premium bonds recently but only a small amount so could do that. Just a mortgage no other debt.
Unless you are confident in achieving a greater return on investment than your mortgage rate, consistently, then my advice generally is to pay that down. With less monthly outgoing on a mortgage you can then use the additional income to invest/save/top up pension etc or reduce your mortgage term.
An alternative, is max out your pension and take advantage of that tax relief and in 17/18 years time take the cash free element to pay off your mortgage, but that takes some planning and likely you'd only want an interest only mortgage and not without risk as who knows what the pension landscape will look like in 18 years time and you need to consider likely overall pot size. But can be very tax efficient, as I've said a couple of times on here, getting 40% relief on additional pension contributions means in broad terms the government pays off 40% of your mortgage for you.
All in it's about making the best use of what you have, another mortgage consideration could be to switch to an offset mortgage and offset cash savings (inheritance) to either pay it off quicker by maintaining the same monthly payment or reducing payment to keep the same term but have more disposable income.
Lastly, don't forget that you can actually spend some! I learnt from parents/grand parents/in laws that life can be short with them dying between the ages of 41 and 75. So whilst of course it's right to plan on the basis you hopefully live to a ripe old age, don't have regrets in years to come about not doing something you really wanted to.
It's a balance, and a nice problem to have, good luck!
Cheers really useful. And yes very good last point.
In my 30 years experience I have found that if you are in a good final salary pension then you should have sufficient enough income to live comfortably.
Certainly all the Doctors I know who retire on c£40k-£50k pa have excess income every month......and thats before they get the State Pension.
I generally find that c£20k annual pension (before the State one) should be adequate enough to live on. Should you want 3 holidays a year then you'll probably need more. But I find most peoples day-to-day expenditure is usually no more than £1k pm. Add in holiday spending money, season tickets & take always then £1500pm is usually well ok.
A lot of people wont have anywhere near this, but I do find many people over estimate how much they do need in retirement & I'm often saying to clients to retire earlier than they plan and to not work until they drop just because they fear not having enough money in retirement.
I've started to look at preference shares as an investment element as the yields are up somewhere around 7% for blue chips such as BP, Aviva and RSA. If interest rates are peaking there should also be the potential for a little bit of capital growth, and as far as I'm aware they can be held in an ISA, so a useful diversification.
Does anyone have a view on this logic, or indeed buy these themselves?
In my 30 years experience I have found that if you are in a good final salary pension then you should have sufficient enough income to live comfortably.
Certainly all the Doctors I know who retire on c£40k-£50k pa have excess income every month......and thats before they get the State Pension.
I generally find that c£20k annual pension (before the State one) should be adequate enough to live on. Should you want 3 holidays a year then you'll probably need more. But I find most peoples day-to-day expenditure is usually no more than £1k pm. Add in holiday spending money, season tickets & take always then £1500pm is usually well ok.
A lot of people wont have anywhere near this, but I do find many people over estimate how much they do need in retirement & I'm often saying to clients to retire earlier than they plan and to not work until they drop just because they fear not having enough money in retirement.
When speaking to the FA they asked my goals and all I had was I want to retire as young as possible. I wish I had a final salary pension.
In my 30 years experience I have found that if you are in a good final salary pension then you should have sufficient enough income to live comfortably.
Certainly all the Doctors I know who retire on c£40k-£50k pa have excess income every month......and thats before they get the State Pension.
I generally find that c£20k annual pension (before the State one) should be adequate enough to live on. Should you want 3 holidays a year then you'll probably need more. But I find most peoples day-to-day expenditure is usually no more than £1k pm. Add in holiday spending money, season tickets & take always then £1500pm is usually well ok.
A lot of people wont have anywhere near this, but I do find many people over estimate how much they do need in retirement & I'm often saying to clients to retire earlier than they plan and to not work until they drop just because they fear not having enough money in retirement.
More savings if you live in a London Borough with the 60+ Oyster card Free transport in London. A third of rail fares. My journey to Heathrow is free on the Elizabeth line.
In my 30 years experience I have found that if you are in a good final salary pension then you should have sufficient enough income to live comfortably.
Certainly all the Doctors I know who retire on c£40k-£50k pa have excess income every month......and thats before they get the State Pension.
I generally find that c£20k annual pension (before the State one) should be adequate enough to live on. Should you want 3 holidays a year then you'll probably need more. But I find most peoples day-to-day expenditure is usually no more than £1k pm. Add in holiday spending money, season tickets & take always then £1500pm is usually well ok.
A lot of people wont have anywhere near this, but I do find many people over estimate how much they do need in retirement & I'm often saying to clients to retire earlier than they plan and to not work until they drop just because they fear not having enough money in retirement.
Are those figures gross or net? Single person or couple?
£1k pm day to day expenditure? Really?
Utilities (electric/gas/water/sewage), house and contents insurance, running a small car (with tax, insurance, fuel, servicing), house repairs and maintenance (things go wrong), council tax - oh and food and household consumables! I find that hard to add up to just £1k per month.
I don't disagree that people fall into the trap of working until they almost drop because of fear of not having enough income to retire - when they actually have more than enough, but those figures are just plain wrong.
out at 57p, for once it was good for the train to be delayed 😂
watch it fly higher now, but I’ll take nearly £5.5k profit in a few days thanks.
Better than a second job!!!
That made me chuckle!! 😂
My main SIPP seems to be making more than my main job currently, role on retirement!!
Out of curiosity, do you have magic formula for calculating the right number needed for retirement?
This is something I’m giving a lot of thought to right now but seems to be many differing approaches from the material I read
Don't know about Magic and there's no one size fits all, but I've worked on the basis that we (wife and I) want 70% of our annual salaries up to age 75 then dropping to 50-60% thereafter with a bit of an increase each year. So just did a spreadsheet on that remembering to reduce private pension at 67/68 or whenever you get your state pension. I have investments outside of pension also and been filling my wife's so her pension especially with state will be double her current salary.
As a SIPP I'll leave invested once in drawdown so also I've assumed a very low rate of growth once retired (1.5%) as will de-risk a lot.
Your comment “ Remembering to reduce private pension at 67/68” . Yes, this is something I think a lot of people are not aware of. The DB scheme “SPD State Pension Deduction” I will get my state pension from this month.
As a result of this various portions of my LLOYDS BANK GROUP DB pension are now attracting different rates of increase. From a couple thousand at nil, another couple at CPI a remainder at RPI (cap5%). However, what really pisses me off is that the pension itself is reduced by £2053 per annum.
Not sure if this is generic across all DB schemes, but worth being aware of.
In my 30 years experience I have found that if you are in a good final salary pension then you should have sufficient enough income to live comfortably.
Certainly all the Doctors I know who retire on c£40k-£50k pa have excess income every month......and thats before they get the State Pension.
I generally find that c£20k annual pension (before the State one) should be adequate enough to live on. Should you want 3 holidays a year then you'll probably need more. But I find most peoples day-to-day expenditure is usually no more than £1k pm. Add in holiday spending money, season tickets & take always then £1500pm is usually well ok.
A lot of people wont have anywhere near this, but I do find many people over estimate how much they do need in retirement & I'm often saying to clients to retire earlier than they plan and to not work until they drop just because they fear not having enough money in retirement.
Are those figures gross or net? Single person or couple?
£1k pm day to day expenditure? Really?
Utilities (electric/gas/water/sewage), house and contents insurance, running a small car (with tax, insurance, fuel, servicing), house repairs and maintenance (things go wrong), council tax - oh and food and household consumables! I find that hard to add up to just £1k per month.
I don't disagree that people fall into the trap of working until they almost drop because of fear of not having enough income to retire - when they actually have more than enough, but those figures are just plain wrong.
We find we need about 3k pm to pay all bills and live as we do. We could certainly cut back on certain things but we don't want to compromise on our lifestyle. Everyone's circumstances are different so there is no real answer. For example we have two dogs and their insurance is about £140pm but we are not going to compromise on that.
1.5k pm per person isn't that far off the mark I wouldn't have thought. A doctor however and you'd need to a least double that I'd think.
I agree we can live comfortably on £3k / month (total for both of us), also we could reduce that amount by around £500 if and when we need to, biggest expense is the car (which I’m still for) and food which have escalated a lot recently, heating and lighting also a fair bit but just been informed I’m about £600 in credit which is nice with winter starting,
In my 30 years experience I have found that if you are in a good final salary pension then you should have sufficient enough income to live comfortably.
Certainly all the Doctors I know who retire on c£40k-£50k pa have excess income every month......and thats before they get the State Pension.
I generally find that c£20k annual pension (before the State one) should be adequate enough to live on. Should you want 3 holidays a year then you'll probably need more. But I find most peoples day-to-day expenditure is usually no more than £1k pm. Add in holiday spending money, season tickets & take always then £1500pm is usually well ok.
A lot of people wont have anywhere near this, but I do find many people over estimate how much they do need in retirement & I'm often saying to clients to retire earlier than they plan and to not work until they drop just because they fear not having enough money in retirement.
Are those figures gross or net? Single person or couple?
£1k pm day to day expenditure? Really?
Utilities (electric/gas/water/sewage), house and contents insurance, running a small car (with tax, insurance, fuel, servicing), house repairs and maintenance (things go wrong), council tax - oh and food and household consumables! I find that hard to add up to just £1k per month.
I don't disagree that people fall into the trap of working until they almost drop because of fear of not having enough income to retire - when they actually have more than enough, but those figures are just plain wrong.
We find we need about 3k pm to pay all bills and live as we do. We could certainly cut back on certain things but we don't want to compromise on our lifestyle. Everyone's circumstances are different so there is no real answer. For example we have two dogs and their insurance is about £140pm but we are not going to compromise on that.
1.5k pm per person isn't that far off the mark I wouldn't have thought. A doctor however and you'd need to a least double that I'd think.
If Golfie meant per person in a couple then I agree - but someone living alone would struggle, certainly at £1k pm.
Yes sorry, I meant as a single person. A couple don't need double though & £2,500 pm is usually ample. Perhaps my clients are just more frugal than the norm.
In my 30 years experience I have found that if you are in a good final salary pension then you should have sufficient enough income to live comfortably.
Certainly all the Doctors I know who retire on c£40k-£50k pa have excess income every month......and thats before they get the State Pension.
I generally find that c£20k annual pension (before the State one) should be adequate enough to live on. Should you want 3 holidays a year then you'll probably need more. But I find most peoples day-to-day expenditure is usually no more than £1k pm. Add in holiday spending money, season tickets & take always then £1500pm is usually well ok.
A lot of people wont have anywhere near this, but I do find many people over estimate how much they do need in retirement & I'm often saying to clients to retire earlier than they plan and to not work until they drop just because they fear not having enough money in retirement.
Are those figures gross or net? Single person or couple?
£1k pm day to day expenditure? Really?
Utilities (electric/gas/water/sewage), house and contents insurance, running a small car (with tax, insurance, fuel, servicing), house repairs and maintenance (things go wrong), council tax - oh and food and household consumables! I find that hard to add up to just £1k per month.
I don't disagree that people fall into the trap of working until they almost drop because of fear of not having enough income to retire - when they actually have more than enough, but those figures are just plain wrong.
We find we need about 3k pm to pay all bills and live as we do. We could certainly cut back on certain things but we don't want to compromise on our lifestyle. Everyone's circumstances are different so there is no real answer. For example we have two dogs and their insurance is about £140pm but we are not going to compromise on that.
1.5k pm per person isn't that far off the mark I wouldn't have thought. A doctor however and you'd need to a least double that I'd think.
If Golfie meant per person in a couple then I agree - but someone living alone would struggle, certainly at £1k pm.
In my 30 years experience I have found that if you are in a good final salary pension then you should have sufficient enough income to live comfortably.
Certainly all the Doctors I know who retire on c£40k-£50k pa have excess income every month......and thats before they get the State Pension.
I generally find that c£20k annual pension (before the State one) should be adequate enough to live on. Should you want 3 holidays a year then you'll probably need more. But I find most peoples day-to-day expenditure is usually no more than £1k pm. Add in holiday spending money, season tickets & take always then £1500pm is usually well ok.
A lot of people wont have anywhere near this, but I do find many people over estimate how much they do need in retirement & I'm often saying to clients to retire earlier than they plan and to not work until they drop just because they fear not having enough money in retirement.
Are those figures gross or net? Single person or couple?
£1k pm day to day expenditure? Really?
Utilities (electric/gas/water/sewage), house and contents insurance, running a small car (with tax, insurance, fuel, servicing), house repairs and maintenance (things go wrong), council tax - oh and food and household consumables! I find that hard to add up to just £1k per month.
I don't disagree that people fall into the trap of working until they almost drop because of fear of not having enough income to retire - when they actually have more than enough, but those figures are just plain wrong.
We find we need about 3k pm to pay all bills and live as we do. We could certainly cut back on certain things but we don't want to compromise on our lifestyle. Everyone's circumstances are different so there is no real answer. For example we have two dogs and their insurance is about £140pm but we are not going to compromise on that.
1.5k pm per person isn't that far off the mark I wouldn't have thought. A doctor however and you'd need to a least double that I'd think.
If Golfie meant per person in a couple then I agree - but someone living alone would struggle, certainly at £1k pm.
Not in my (30 years) experience. But then, as I said, perhaps some of my clients are more frugal. And before cost of living / inflation has increased many things. But I see a lot of clients 65+ who have excess income every month & it just builds up in their current account.......until I come along, scoop it all up & put it in their ISA every year.
Possible Scam advice please: The wife had a successful PPI claim 5 years ago. She had a phone call today from Tax Reclaim Solutions Ltd who knew all about her claim and are now saying that she can claim back the tax paid on those payments. They’ve sent her what look like a HMRC official form authorising them to have access to her tax records if she signs the form using ‘Dropbox’. They take 33% + vat PLUS £50 for all tax years the claim relates to. Her successful PPI claim was for £4250 but she only received £1700 so that company took 60%. This appears not to be the same company so it begs the question how they know so much about her original claim. I’ve Googled this company and they have 1 director, John Briggs. Does anyone have any experience of this or heard of this type of claim. I’m thinking that it’s not worth the risk for, potentially, very little return anyway. Thoughts, kind people ITK?
Possible Scam advice please: The wife had a successful PPI claim 5 years ago. She had a phone call today from Tax Reclaim Solutions Ltd who knew all about her claim and are now saying that she can claim back the tax paid on those payments. They’ve sent her what look like a HMRC official form authorising them to have access to her tax records if she signs the form using ‘Dropbox’. Does anyone have any experience of this or heard of this?
Possible Scam advice please: The wife had a successful PPI claim 5 years ago. She had a phone call today from Tax Reclaim Solutions Ltd who knew all about her claim and are now saying that she can claim back the tax paid on those payments. They’ve sent her what look like a HMRC official form authorising them to have access to her tax records if she signs the form using ‘Dropbox’. They take 33% + vat PLUS £50 for all tax years the claim relates to. Her successful PPI claim was for £4250 but she only received £1700 so that company took 60%. This appears not to be the same company so it begs the question how they know so much about her original claim. I’ve Googled this company and they have 1 director, John Briggs. Does anyone have any experience of this or heard of this type of claim. I’m thinking that it’s not worth the risk for, potentially, very little return anyway. Thoughts, kind people ITK?
They will doubtless charge a large fee. Get her to reclaim herself if possible.
Comments
I'll be getting some more soon and trying to figure out what best to do. I have a workplace pension so is it worth topping that up? A SIPP? Is it sensible to speak to another FA and invest through them just to spread the risk or go through the existing one?
Any debts?
An alternative, is max out your pension and take advantage of that tax relief and in 17/18 years time take the cash free element to pay off your mortgage, but that takes some planning and likely you'd only want an interest only mortgage and not without risk as who knows what the pension landscape will look like in 18 years time and you need to consider likely overall pot size. But can be very tax efficient, as I've said a couple of times on here, getting 40% relief on additional pension contributions means in broad terms the government pays off 40% of your mortgage for you.
All in it's about making the best use of what you have, another mortgage consideration could be to switch to an offset mortgage and offset cash savings (inheritance) to either pay it off quicker by maintaining the same monthly payment or reducing payment to keep the same term but have more disposable income.
Lastly, don't forget that you can actually spend some! I learnt from parents/grand parents/in laws that life can be short with them dying between the ages of 41 and 75. So whilst of course it's right to plan on the basis you hopefully live to a ripe old age, don't have regrets in years to come about not doing something you really wanted to.
It's a balance, and a nice problem to have, good luck!
Certainly all the Doctors I know who retire on c£40k-£50k pa have excess income every month......and thats before they get the State Pension.
I generally find that c£20k annual pension (before the State one) should be adequate enough to live on. Should you want 3 holidays a year then you'll probably need more. But I find most peoples day-to-day expenditure is usually no more than £1k pm. Add in holiday spending money, season tickets & take always then £1500pm is usually well ok.
A lot of people wont have anywhere near this, but I do find many people over estimate how much they do need in retirement & I'm often saying to clients to retire earlier than they plan and to not work until they drop just because they fear not having enough money in retirement.
£1k pm day to day expenditure? Really?
Utilities (electric/gas/water/sewage), house and contents insurance, running a small car (with tax, insurance, fuel, servicing), house repairs and maintenance (things go wrong), council tax - oh and food and household consumables! I find that hard to add up to just £1k per month.
I don't disagree that people fall into the trap of working until they almost drop because of fear of not having enough income to retire - when they actually have more than enough, but those figures are just plain wrong.
Not sure if this is generic across all DB schemes, but worth being aware of.
1.5k pm per person isn't that far off the mark I wouldn't have thought. A doctor however and you'd need to a least double that I'd think.
If Golfie meant per person in a couple then I agree - but someone living alone would struggle, certainly at £1k pm.
And these are net figures.
thanks
Get her to reclaim herself if possible.
EDIT, just £50 for Father in Law.
Cashed them all in to buy this property....😥.
The best month I’ve ever had on the PBs.
£500 get in.