Well, if you have a fully rounded portfolio then todays small blip shouldn't affect you much at all.
With my recommended max allocation of 25% in US equities, being split across all sectors & market caps, should see little in the way of losses overall.
The almost daily dividend fund has done well today, my S&P 500 is a little down but not major, just the tech stuff in particular blockchain to a bit of a hit. Longer term though that will be fine
Well, if you have a fully rounded portfolio then todays small blip shouldn't affect you much at all.
With my recommended max allocation of 25% in US equities, being split across all sectors & market caps, should see little in the way of losses overall.
But how much would I have missed out on to this point with only 25% in US? The S&P is still up 21.53% the past 12 months, NASDAQ 23.08% (FTSE100 11.41%, FTSE250 5.48%), 2 year is even more stark 47.24%, 65.72% v 9.51% and 1.67%!
Just noticed that Torsten Bell has been appointed as parliamentary secretary for the DWP. This is the man who thinks the tax free lump sum should be massively reduced and there should be a (100k?) cap on ISAs.
It is surprising that successive chancellors have not opted to cap the aggregate max an individual can hold in ISAs. One day it will undoubtedly happen.
Just noticed that Torsten Bell has been appointed as parliamentary secretary for the DWP. This is the man who thinks the tax free lump sum should be massively reduced and there should be a (100k?) cap on ISAs.
It is surprising that successive chancellors have not opted to cap the aggregate max an individual can hold in ISAs. One day it will undoubtedly happen.
I think we are more likely to see an LTA return for pensions before ISA’s as pensions are 100% tax free (rather than just returns).
I can see a reduced annual allowance though, as £20k is quite sizeable really.
Am just mulling over whether to draw cash from my drawdown pension. I don’t need the money yet but worried legislation will change. Aside from drawing 25% tax free, what are my other options and what do I do with spare cash if my ISA,s are maxed out?
Am just mulling over whether to draw cash from my drawdown pension. I don’t need the money yet but worried legislation will change. Aside from drawing 25% tax free, what are my other options and what do I do with spare cash if my ISA,s are maxed out?
The risk on the 25% seems to have gone away, for now.
you can drawdown more than the 25% which then becomes income, so it could be worth considering if you don’t currently have an income to use up to your personal allowance, or indeed some of the 20% band if you will in future have an income taking you into the 40% band.
as to where to put it…….. tax free is ISA already filled or premium bonds, not much else without getting funky!!
Blimey! I was only down 0.004% from the previous day.
The tracker fund I've invested in is 65% American and a sizable chunk of the stocks are tech related. I've not done badly with it overall but most of the gains over the last few months have been down to the exchange rate which I'm aware could reverse very easily. I'm weighing up my options 😀.
Am just mulling over whether to draw cash from my drawdown pension. I don’t need the money yet but worried legislation will change. Aside from drawing 25% tax free, what are my other options and what do I do with spare cash if my ISA,s are maxed out?
Leave it where it is. There is no where better than ISA's and Pensions for tax free/ tax efficient growth.
If there were to be any changes to the 25% tax free lump sum in forthcoming budgets then the change would not be overnight and would need voting on in parliament. Worse case scenario is that it would happen at the start of the next tax year after it was announced.
Am just mulling over whether to draw cash from my drawdown pension. I don’t need the money yet but worried legislation will change. Aside from drawing 25% tax free, what are my other options and what do I do with spare cash if my ISA,s are maxed out?
Leave it where it is. There is no where better than ISA's and Pensions for tax free/ tax efficient growth.
If there were to be any changes to the 25% tax free lump sum in forthcoming budgets then the change would not be overnight and would need voting on in parliament. Worse case scenario is that it would happen at the start of the next tax year after it was announced.
I had a similar discussion with my wife’s cousin this week. She is 58, retired late 2023 and is yet to draw any pension and living off her savings. My advice was to draw at least £12,500 this tax year from her DC to use up her tax free allowance on the basis of use it or lose it. From next year her DB kicks in.
Blimey! I was only down 0.004% from the previous day.
The tracker fund I've invested in is 65% American and a sizable chunk of the stocks are tech related. I've not done badly with it overall but most of the gains over the last few months have been down to the exchange rate which I'm aware could reverse very easily. I'm weighing up my options 😀.
Similar here on weighting. Down 2% over the last two days but was up 5% on the month up to this point so can't complain.
Hi. I'm looking for some advise. I will be 65 in March and have two final salery pensions that I will be able to take. I have a third one that I took when the pandemic started.
One of the pensions that I will be able to access gives me the opportunity to take a 25% tax free lump sum c£100,000. I'm not sure if I should sacrifice the reduction in the pension c£6k p/a that I will lose or not. I don't really need the cash as I will have the other two pensions, my state pension in 12 months and also rent out two houses and have a fair amount of savings / investments.
Should I take the cash and spend / Invest some of it or max the pension income?. Any advise gladly welcomed. Cheers.
Hi. I'm looking for some advise. I will be 65 in March and have two final salery pensions that I will be able to take. I have a third one that I took when the pandemic started.
One of the pensions that I will be able to access gives me the opportunity to take a 25% tax free lump sum c£100,000. I'm not sure if I should sacrifice the reduction in the pension c£6k p/a that I will lose or not. I don't really need the cash as I will have the other two pensions, my state pension in 12 months and also rent out two houses and have a fair amount of savings / investments.
Should I take the cash and spend / Invest some of it or max the pension income?. Any advise gladly welcomed. Cheers.
I'm far from an expert but personally I'd take it just in case the rules change. You can always squirrel it away elsewhere and still get a return on it. As said others will have a different view.
Hi. I'm looking for some advise. I will be 65 in March and have two final salery pensions that I will be able to take. I have a third one that I took when the pandemic started.
One of the pensions that I will be able to access gives me the opportunity to take a 25% tax free lump sum c£100,000. I'm not sure if I should sacrifice the reduction in the pension c£6k p/a that I will lose or not. I don't really need the cash as I will have the other two pensions, my state pension in 12 months and also rent out two houses and have a fair amount of savings / investments.
Should I take the cash and spend / Invest some of it or max the pension income?. Any advise gladly welcomed. Cheers.
I would usually advise to take the enhanced cash amount & lower pension, especially (as it seems) you have other income streams & might be (if not now but in the future) be a high rate tax payer.
Take the cash & max out your ISA's over the next few years. If married then max out your wife's ISA's too.
Unfortunately Czechs remain a bit innocent of risks which those of us brought up in more complex urban societies recognise more sharply. Here's a little non-finance anecdote:
Back in 2002 we were looking for a house or plot to buy in Prague for our dream home. Up came a place in a dreamy green area just north of the city centre and close to the Vltava river, so we went to see it.
It was set back from the road. We crossed a babbling stream to get to it. Who doesn't love a babbling stream. This one flows into the Vltava 300 metres away. Remembering problems with uncontrolled tributaries to the Thames, I asked the young owner if the stream wasn't a bit of a flood risk. He gave me the "stupid foreigner" look and said " Flood? there hasn't been a flood here for 100 years". A few months later, this happened: Prague's "100 year Flood" they actually called it that😂 it's the actual spot, we have friends with a house there, uninsurable for flood risk.
More relevantly Aleš Michl the CNB governor is relatively young, and when he was a rising analyst at the Putin friendly Raifeissen Bank, he cultivated a rock-star image. Too many young female middle managers on LinkedIn re-posted his deliberately provocative public pronouncements and forecasts. I never trust people like that.
Hi. I'm looking for some advise. I will be 65 in March and have two final salery pensions that I will be able to take. I have a third one that I took when the pandemic started.
One of the pensions that I will be able to access gives me the opportunity to take a 25% tax free lump sum c£100,000. I'm not sure if I should sacrifice the reduction in the pension c£6k p/a that I will lose or not. I don't really need the cash as I will have the other two pensions, my state pension in 12 months and also rent out two houses and have a fair amount of savings / investments.
Should I take the cash and spend / Invest some of it or max the pension income?. Any advise gladly welcomed. Cheers.
I would usually advise to take the enhanced cash amount & lower pension, especially (as it seems) you have other income streams & might be (if not now but in the future) be a high rate tax payer.
Take the cash & max out your ISA's over the next few years. If married then max out your wife's ISA's too.
Hi. I'm looking for some advise. I will be 65 in March and have two final salery pensions that I will be able to take. I have a third one that I took when the pandemic started.
One of the pensions that I will be able to access gives me the opportunity to take a 25% tax free lump sum c£100,000. I'm not sure if I should sacrifice the reduction in the pension c£6k p/a that I will lose or not. I don't really need the cash as I will have the other two pensions, my state pension in 12 months and also rent out two houses and have a fair amount of savings / investments.
Should I take the cash and spend / Invest some of it or max the pension income?. Any advise gladly welcomed. Cheers.
Realistically if you take it and invest it you’ll need to live past 85/90 to be worse off, even if you have a spouse.
id take it, fairly low risk doing so but many upsides!
We all hope we live to a ripe old age, a director at Legal and General many years ago retired on his 65th birthday, guy was a workaholic (not married, no children). I suspect his DB pension was north of £200k a year even back then, he died within 3 weeks so never saw a penny!!
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With my recommended max allocation of 25% in US equities, being split across all sectors & market caps, should see little in the way of losses overall.
I can see a reduced annual allowance though, as £20k is quite sizeable really.
you can drawdown more than the 25% which then becomes income, so it could be worth considering if you don’t currently have an income to use up to your personal allowance, or indeed some of the 20% band if you will in future have an income taking you into the 40% band.
as to where to put it…….. tax free is ISA already filled or premium bonds, not much else without getting funky!!
If there were to be any changes to the 25% tax free lump sum in forthcoming budgets then the change would not be overnight and would need voting on in parliament. Worse case scenario is that it would happen at the start of the next tax year after it was announced.
@PragueAddick
One of the pensions that I will be able to access gives me the opportunity to take a 25% tax free lump sum c£100,000. I'm not sure if I should sacrifice the reduction in the pension c£6k p/a that I will lose or not. I don't really need the cash as I will have the other two pensions, my state pension in 12 months and also rent out two houses and have a fair amount of savings / investments.
Should I take the cash and spend / Invest some of it or max the pension income?. Any advise gladly welcomed. Cheers.
Take the cash & max out your ISA's over the next few years. If married then max out your wife's ISA's too.
Unfortunately Czechs remain a bit innocent of risks which those of us brought up in more complex urban societies recognise more sharply. Here's a little non-finance anecdote:
Back in 2002 we were looking for a house or plot to buy in Prague for our dream home. Up came a place in a dreamy green area just north of the city centre and close to the Vltava river, so we went to see it.
It was set back from the road. We crossed a babbling stream to get to it. Who doesn't love a babbling stream. This one flows into the Vltava 300 metres away. Remembering problems with uncontrolled tributaries to the Thames, I asked the young owner if the stream wasn't a bit of a flood risk. He gave me the "stupid foreigner" look and said " Flood? there hasn't been a flood here for 100 years". A few months later, this happened: Prague's "100 year Flood" they actually called it that😂 it's the actual spot, we have friends with a house there, uninsurable for flood risk.
More relevantly Aleš Michl the CNB governor is relatively young, and when he was a rising analyst at the Putin friendly Raifeissen Bank, he cultivated a rock-star image. Too many young female middle managers on LinkedIn re-posted his deliberately provocative public pronouncements and forecasts. I never trust people like that.
"Grumpy old git" of Prague 😉
id take it, fairly low risk doing so but many upsides!