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Savings and Investments thread
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Pension question please.
My wife is on a zero hour contract and gets no work pension. Her earnings each yr are small. I have some spare cash I could use to top up her pension a little.
Last 4 yrs she has always earned less than £10Kpa. So..
1. Does she still get carry forwards tax relief, so in theory I could go back 3yrs?
2. Can I pay in more than she earned this year gross due to carry forwards?
3. Am I right she still gets tax relief up to 100% of her take home in any given year given her low wages?
Hope that makes sense..0 -
Did she have a pension in the prior years, from memory you can only carry forward if you were in a pension. If so you can carry forward any unused allowance up to her current salary. So if she's only earning £10k this tax year that's the most that can go into pension.Athletico Charlton said:Pension question please.
My wife is on a zero hour contract and gets no work pension. Her earnings each yr are small. I have some spare cash I could use to top up her pension a little.
Last 4 yrs she has always earned less than £10Kpa. So..
1. Does she still get carry forwards tax relief, so in theory I could go back 3yrs?
2. Can I pay in more than she earned this year gross due to carry forwards?
3. Am I right she still gets tax relief up to 100% of her take home in any given year given her low wages?
Hope that makes sense..2 -
To echo @Rob7Lee and to add a bit more.
She can do carry forward if she has had an "active" pension over the 3 years she is "carrying back". This does not necessarily mean she had had to been paying into it but she must have had one opened.
However, your wife can only pay in the maximum of her earnings for this tax year, even though in reality she has scope to pay in far more.
The Annual Allowance is now £60k. If she happened to have earnt £100k this year then she could put in £60k for this year & £40k for the previous year(s). Sadly though, if she has only earnt £10k this year then that is the maximum she can pay in.2 -
Ah, thanks. She has a private pension with Vanguard which was opened in 2021 so I think that means timeline wise she is fine but sadly she has not earned much this year so will be caught by 100% of this year's salary which is what I thought reading everything but hoped was wrong. Thanks @Rob7Lee and @golfaddick2
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I have a similar issue with my wife, a low earner, caps at her annual salary.Athletico Charlton said:Ah, thanks. She has a private pension with Vanguard which was opened in 2021 so I think that means timeline wise she is fine but sadly she has not earned much this year so will be caught by 100% of this year's salary which is what I thought reading everything but hoped was wrong. Thanks @Rob7Lee and @golfaddick
Get 80% of her 23/24 salary in before the end of the tax year, then from April just pay in (if you can) monthly 80% of her earnings.
Otherwise just top up an ISA over and above the pension, at least that'll be tax free out so in effect little difference to pension contributions once she starts drawing the state pension which uses up most of the personal allowance.1 -
On the topic of Ashtead, which I regard as a solid, stable company, their price seems to over react to anything less than very positive news. They told the market on March 5th that full year revenue growth would be towards the bottom end of the previously forecast range of 11-13% and full year results broadly in line with expectations. Hardly disastrous, but the shares dropped from £57.28 to £50.28 in four days. Ridiculous in my opinion! So I scooped up some more for £50.78. They're already back to £55.00, thanks very much, Market. I've been playing this game for a bit and have a price target of £60. It seems like very easy money, in my fool's paradise.IdleHans said:Got a handful of BP shares that I bought in the COVID dip at just over two quid and think I might offload. Have been buying Ashtead on the dips but they are a way off my target price.
Annoyed with myself for not buying Nvidia last year at about $300, but FOMO has caused me to pay twice that in the last month just so I've got some.
Still got zynex shares which seem to be slowly clawing their way back. One to put away and forget.
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A friend of mine is with SJP (yes yes, we and he know now), but the point here is that he asked them to advise on partial/full encashment figures for his International bond on the 2nd March and is yet to receive the figures. He received an apology for the slow response, merely asking for his current salary.
I would dread to think about the SLA when he comes to ask for the actual withdrawal and account closure! What would you do/advise in this situation?0 -
Who did he ask ?? His advisor or a dept within SJP ? Any decent adviser worth his salt could get the figures by close of play.mendonca said:A friend of mine is with SJP (yes yes, we and he know now), but the point here is that he asked them to advise on partial/full encashment figures for his International bond on the 2nd March and is yet to receive the figures. He received an apology for the slow response, merely asking for his current salary.
I would dread to think about the SLA when he comes to ask for the actual withdrawal and account closure! What would you do/advise in this situation?0 -
He asked his advisor. Usually quite sharpish in his replies, but seems to have gone missing since he's hinted at closing the account soon.golfaddick said:
Who did he ask ?? His advisor or a dept within SJP ? Any decent adviser worth his salt could get the figures by close of play.mendonca said:A friend of mine is with SJP (yes yes, we and he know now), but the point here is that he asked them to advise on partial/full encashment figures for his International bond on the 2nd March and is yet to receive the figures. He received an apology for the slow response, merely asking for his current salary.
I would dread to think about the SLA when he comes to ask for the actual withdrawal and account closure! What would you do/advise in this situation?0 -
Well, to answer your original question, the first start is to make a formal complaint to SJP, not his adviser. That might put a rocket up their arses, and by result, one up his. He can also ask that any ongoing fees are stopped with immediate effect. (there is currently an ad on the radio by an ambulance chasing solicitor asking for people to come forward who are being charged an ongoing fee from SJP but not receiving a service from them).mendonca said:
He asked his advisor. Usually quite sharpish in his replies, but seems to have gone missing since he's hinted at closing the account soon.golfaddick said:
Who did he ask ?? His advisor or a dept within SJP ? Any decent adviser worth his salt could get the figures by close of play.mendonca said:A friend of mine is with SJP (yes yes, we and he know now), but the point here is that he asked them to advise on partial/full encashment figures for his International bond on the 2nd March and is yet to receive the figures. He received an apology for the slow response, merely asking for his current salary.
I would dread to think about the SLA when he comes to ask for the actual withdrawal and account closure! What would you do/advise in this situation?2 - Sponsored links:
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This is standard SJP playbook, as detailed ad nauseum in the Sunday Times over the years. They'll drag everything out as long as they can.golfaddick said:
Well, to answer your original question, the first start is to make a formal complaint to SJP, not his adviser. That might put a rocket up their arses, and by result, one up his. He can also ask that any ongoing fees are stopped with immediate effect. (there is currently an ad on the radio by an ambulance chasing solicitor asking for people to come forward who are being charged an ongoing fee from SJP but not receiving a service from them).mendonca said:
He asked his advisor. Usually quite sharpish in his replies, but seems to have gone missing since he's hinted at closing the account soon.golfaddick said:
Who did he ask ?? His advisor or a dept within SJP ? Any decent adviser worth his salt could get the figures by close of play.mendonca said:A friend of mine is with SJP (yes yes, we and he know now), but the point here is that he asked them to advise on partial/full encashment figures for his International bond on the 2nd March and is yet to receive the figures. He received an apology for the slow response, merely asking for his current salary.
I would dread to think about the SLA when he comes to ask for the actual withdrawal and account closure! What would you do/advise in this situation?1 -
We have had some interesting perspectives on SJP. Anyone got any thoughts/opinions on Fisher Investments ?0
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I asked the same on this thread around a year ago.holyjo said:We have had some interesting perspectives on SJP. Anyone got any thoughts/opinions on Fisher Investments ?I found them to be very hard sell, little substance when questioned on specifics. Seemed high fees for what you get.2 -
Steer well clear. Even worse.BalladMan said:
I asked the same on this thread around a year ago.holyjo said:We have had some interesting perspectives on SJP. Anyone got any thoughts/opinions on Fisher Investments ?I found them to be very hard sell, little substance when questioned on specifics. Seemed high fees for what you get.3 -
So, the SJP chap finally replied to my friend with a calculation passed from the "Central Bond Team", aka a bloody calculator no doubt. Guess what, as this advice was asked from the 3rd of March, alongside the fact that SJP take upto 14 days for a withdrawal to process (manual paperwork of course to drag things along further), the clock has timed out for him to partially withdraw his gain from the bond in the 23/24 tax year, to apply to this current year's self assessment as income.WishIdStayedinthePub said:
This is standard SJP playbook, as detailed ad nauseum in the Sunday Times over the years. They'll drag everything out as long as they can.golfaddick said:
Well, to answer your original question, the first start is to make a formal complaint to SJP, not his adviser. That might put a rocket up their arses, and by result, one up his. He can also ask that any ongoing fees are stopped with immediate effect. (there is currently an ad on the radio by an ambulance chasing solicitor asking for people to come forward who are being charged an ongoing fee from SJP but not receiving a service from them).mendonca said:
He asked his advisor. Usually quite sharpish in his replies, but seems to have gone missing since he's hinted at closing the account soon.golfaddick said:
Who did he ask ?? His advisor or a dept within SJP ? Any decent adviser worth his salt could get the figures by close of play.mendonca said:A friend of mine is with SJP (yes yes, we and he know now), but the point here is that he asked them to advise on partial/full encashment figures for his International bond on the 2nd March and is yet to receive the figures. He received an apology for the slow response, merely asking for his current salary.
I would dread to think about the SLA when he comes to ask for the actual withdrawal and account closure! What would you do/advise in this situation?
As he wants to exit SJP, he could fully surrender the policy in the upcoming tax year, but due to the gain, it will take him into the 40pc tax bracket for that amount. So he may be best served by splitting it into a 2 year plan. This has all been planned by the Company hasn't it?1 -
Imo, No. It's not a conspiracy or a way for SJP (or any other financial services company for that matter) to keep the money invested for longer. Its just FS companies are still working to outdated methods of processing. Tbh many have been brought up to date, and Covid helped, by accepting electronic signatures or even no signature & just confirmation from the adviser. I should know, I've been working in the industry for 35 years. Lots of FS & Insurance companies just seem to work to their timelines & woebetide you if you want your money sooner.mendonca said:
So, the SJP chap finally replied to my friend with a calculation passed from the "Central Bond Team", aka a bloody calculator no doubt. Guess what, as this advice was asked from the 3rd of March, alongside the fact that SJP take upto 14 days for a withdrawal to process (manual paperwork of course to drag things along further), the clock has timed out for him to partially withdraw his gain from the bond in the 23/24 tax year, to apply to this current year's self assessment as income.WishIdStayedinthePub said:
This is standard SJP playbook, as detailed ad nauseum in the Sunday Times over the years. They'll drag everything out as long as they can.golfaddick said:
Well, to answer your original question, the first start is to make a formal complaint to SJP, not his adviser. That might put a rocket up their arses, and by result, one up his. He can also ask that any ongoing fees are stopped with immediate effect. (there is currently an ad on the radio by an ambulance chasing solicitor asking for people to come forward who are being charged an ongoing fee from SJP but not receiving a service from them).mendonca said:
He asked his advisor. Usually quite sharpish in his replies, but seems to have gone missing since he's hinted at closing the account soon.golfaddick said:
Who did he ask ?? His advisor or a dept within SJP ? Any decent adviser worth his salt could get the figures by close of play.mendonca said:A friend of mine is with SJP (yes yes, we and he know now), but the point here is that he asked them to advise on partial/full encashment figures for his International bond on the 2nd March and is yet to receive the figures. He received an apology for the slow response, merely asking for his current salary.
I would dread to think about the SLA when he comes to ask for the actual withdrawal and account closure! What would you do/advise in this situation?
As he wants to exit SJP, he could fully surrender the policy in the upcoming tax year, but due to the gain, it will take him into the 40pc tax bracket for that amount. So he may be best served by splitting it into a 2 year plan. This has all been planned by the Company hasn't it?
As I said previously, your mate needs to go down the complaints route. He has to start with SJP's internal procedures but ultimately if he is not happy he can escalate it to the Financial Ombudsman Service (FOS).
As long as he has a clear timeline of his needs & actions and clear communication that he wanted a partial encashmebr to fall inside this tax year this he has a legitimate complaint & can seek redress for any excess tax that he will ultimately pay by it not being spread over multiple tax years.
Edit.
If I was the adviser in this case I would be making sure the Bond dept had the forms today, by email, and then a follow up call TODAY to make sure they have them and working on them. If they really need a paper based one then I'd be seeing the client personally & then sending the forms 1st class & signed for so they get them on Monday. SJP's "14 days" is a standard line all companies trot out but ime most companies can do it within 5-7 working days. If SJP got the forms on Monday they would have 8 working days until the end of the tax year. I believe the money does not actually have to be in the bank account before April 6th but just that a partial surrender has occured & that the money is now out of the Bond.
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In Feb 2023 the FTSE was at 8102 a record close. The FTSE 100 is at 7959 this morning and has the potential to hit a new high next week. Matching recent highs seen in US markets. Pleased to see my share portfolio hitting its own all time high.However, I have reached an age where it makes no sense to keep re-investing dividends back into the market. It’s time to take the cash and spend…..
My shares are held in a Stocks & Shares ISA with Halifax. I now have over £4,000 sitting in there earning no interest. What I would like to do, is take that cash and move it into a Cash ISA.My question to those who know more than me is. If I open a new Cash ISA in April with £20,000. Can I then move the £4000 in cash from my share ISA into that account. Is this viewed just as an ISA transfer, or as it’s SHARE ISA to CASH ISA is that not allowed ?0 -
@golfaddick - appreciate the wise words and summary.1
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Yes, you can move S&S ISA to Cash and vice-versa without it impacting on your Annual ISA Allowance.RaplhMilne said:In Feb 2023 the FTSE was at 8102 a record close. The FTSE 100 is at 7959 this morning and has the potential to hit a new high next week. Matching recent highs seen in US markets. Pleased to see my share portfolio hitting its own all time high.However, I have reached an age where it makes no sense to keep re-investing dividends back into the market. It’s time to take the cash and spend…..
My shares are held in a Stocks & Shares ISA with Halifax. I now have over £4,000 sitting in there earning no interest. What I would like to do, is take that cash and move it into a Cash ISA.My question to those who know more than me is. If I open a new Cash ISA in April with £20,000. Can I then move the £4000 in cash from my share ISA into that account. Is this viewed just as an ISA transfer, or as it’s SHARE ISA to CASH ISA is that not allowed ?
However, when you say your Halifax S&S ISA is not earning you any "interest" it will be "growing" depending on the shares you have in it. As you say yourself the FTSE100 is near its all time high and equity markets in general have gone up quite a bit over the past 6 months.
You don't have to "re-invest" the dividends if you are in accumulation funds - the value of the dividend simply increasing the price of the units thus you get annual growth of around 2% simply by this method.
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I think he means he has £4k of CASH sitting in his stocks and shares ISA as dividends aren't being reinvested, I guess due to income funds rather than accumulation.golfaddick said:
Yes, you can move S&S ISA to Cash and vice-versa without it impacting on your Annual ISA Allowance.RaplhMilne said:In Feb 2023 the FTSE was at 8102 a record close. The FTSE 100 is at 7959 this morning and has the potential to hit a new high next week. Matching recent highs seen in US markets. Pleased to see my share portfolio hitting its own all time high.However, I have reached an age where it makes no sense to keep re-investing dividends back into the market. It’s time to take the cash and spend…..
My shares are held in a Stocks & Shares ISA with Halifax. I now have over £4,000 sitting in there earning no interest. What I would like to do, is take that cash and move it into a Cash ISA.My question to those who know more than me is. If I open a new Cash ISA in April with £20,000. Can I then move the £4000 in cash from my share ISA into that account. Is this viewed just as an ISA transfer, or as it’s SHARE ISA to CASH ISA is that not allowed ?
However, when you say your Halifax S&S ISA is not earning you any "interest" it will be "growing" depending on the shares you have in it. As you say yourself the FTSE100 is near its all time high and equity markets in general have gone up quite a bit over the past 6 months.
You don't have to "re-invest" the dividends if you are in accumulation funds - the value of the dividend simply increasing the price of the units thus you get annual growth of around 2% simply by this method.
Talking of the FTSE 100 performing:Name Level Variance % Variance wwaddick 7934 3.08 0.04% Salad 7918 12.92 0.16% Jamescafc 7950 19.08 0.24% HardyAddick 7951 20.08 0.25% Hornchurch 7902 28.92 0.36% meldrew66 7901 29.92 0.38% PragueAddick 7965 34.08 0.43% CharltonKerry 7966 35.08 0.44% blackpool72 7970 39.08 0.49% oohaahmortimer 7891 39.92 0.50% Rob7Lee 7891 39.92 0.50% Pedro45 7975 44.08 0.56% aitchyaddick 7978 47.08 0.59% holyjo 7979 48.08 0.61% Housty 7882 48.92 0.62% Bangkokaddick 7878 52.92 0.67% Redman 7988 57.08 0.72% bobmunro 7989 58.08 0.73% Lonelynorthernaddick 7870 60.92 0.77% Addick Addict 7864 66.92 0.84% Jon_CAFC_ 7864 66.92 0.84% valleynick66 7863 67.92 0.86% guinnessaddick 8001 70.08 0.88% Solidgone 8001 70.08 0.88% cafcpolo 8011 80.08 1.01% thecat 7850 80.92 1.02% Thread Killer 8016 85.08 1.07% CAFCWest 7839 91.92 1.16% TheGhostofTomHovi 7830 100.92 1.27% Huskaris 7825 105.92 1.34% Addickinedi 7824 106.92 1.35% LargeAddick 7824 106.92 1.35% WishIdStayedInThe Pub 8047 116.08 1.46% IdleHans 7810 120.92 1.52% Daarrrzzettbum 7801 129.92 1.64% RalphMilne 7795 135.92 1.71% MrWalker 8077 146.08 1.84% Morboe 7768 162.92 2.05% @TelMc32 8100 169.08 2.13% fat man on a moped 7758 172.92 2.18% StrikerFirmani 7720 210.92 2.66% golfaddick 7680 250.92 3.16% Covered End 7579 351.92 4.44% Fortune 82nd Minute 7450 480.92 6.06% Lenglover 7401 529.92 6.68% Er_Be_Ab_Pl_Wo_Wo_Ch 6999 931.92 11.75% 2 - Sponsored links:
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Reading that again, if, as @Rob7Lee says, you are sitting on £4k worth of cash in your S&S Isa then that's a totally different ball game. Most providers will let you do a partial transfer but not all.0
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I have an S&S ISA with Trading212. They pay 5.2% interest on uninvested cash within the ISA. Even miserly HL pay a bit of interest on cash in S&S ISAs. Are Halifax really that tight they don't pay anything at all? I'd be looking at shifting the lot if that's true.2
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Certainly not disagreeing. However you do need to be careful. It is important it is a transfer. You can't take it out and then re-invest. That would use part of your annual allowance.golfaddick said:Reading that again, if, as @Rob7Lee says, you are sitting on £4k worth of cash in your S&S Isa then that's a totally different ball game. Most providers will let you do a partial transfer but not all.0 -
Obviously you should transfer rather than take the money out & put it into a different ISA. However, many providers offer a flexi ISA where you can put the money back without it affecting your £20k allowance.redman said:
Certainly not disagreeing. However you do need to be careful. It is important it is a transfer. You can't take it out and then re-invest. That would use part of your annual allowance.golfaddick said:Reading that again, if, as @Rob7Lee says, you are sitting on £4k worth of cash in your S&S Isa then that's a totally different ball game. Most providers will let you do a partial transfer but not all.1 -
To the investors, what are your plans for the next ISA year starting from 6th April?
Personally, I'm torn between the usual. Fully invest the £20k into my current funds, or drip feed as the months go by. Will markets continue to perform to current levels, or will they take a dip soon. Another year, same old questions.
I don't think anybody, even Investment Managers saw this level of bounce coming from November.0 -
Personally I'd ALWAYS drip feed, too dangerous to lump in all in one with the markets as they are.mendonca said:To the investors, what are your plans for the next ISA year starting from 6th April?
Personally, I'm torn between the usual. Fully invest the £20k into my current funds, or drip feed as the months go by. Will markets continue to perform to current levels, or will they take a dip soon. Another year, same old questions.
I don't think anybody, even Investment Managers saw this level of bounce coming from November.
for who saw the bounce coming, quote a few in the CL FTSE100 comp!
For me next year will be the first year I may actually take a cash ISA as well rather than just a S&S. I'm into my 50's now and heading towards retirement. My SIPP is obviously heavy in S&S's so time to de-risk a little I think, but will do so with things like CASH ISA's.2 -
Yes, it is cash from non invested dividends that is in my Share ISA. An I am aware that I can’t take it out and pay it into an ISA with is counting against my annual allowance. Hence why, I want to do an ISA transfer. I will shop around before opening this years ISA to ensure I can move this and future cash from my Share ISA.golfaddick said:
Obviously you should transfer rather than take the money out & put it into a different ISA. However, many providers offer a flexi ISA where you can put the money back without it affecting your £20k allowance.redman said:
Certainly not disagreeing. However you do need to be careful. It is important it is a transfer. You can't take it out and then re-invest. That would use part of your annual allowance.golfaddick said:Reading that again, if, as @Rob7Lee says, you are sitting on £4k worth of cash in your S&S Isa then that's a totally different ball game. Most providers will let you do a partial transfer but not all.Thanks0 -
Hang on though, we are forecasting what we expect at end June, not right now. Personally I choose a figure based on the % increase I expect. I can’t recall what the starting figure was but the current level is something like 3% up. That’s a lot in one quarter, but it could do anything between now and end June. For planning purposes most of us need to ask how much we think equity markts will go up over a full year and how that compares with what we get by holding cash. I expect to get just about 5% this calendar year from my cash even as central banks cut because I have several bonds which are at above 5.0% including the NS&I 6.2%. I’m of course happy with the bounce but I certainly didnt call such a sharp one and I’m not counting on it lasting. One reason is the bounce is yet again Big Tech driven and the big Tech barons are busy selling chunks of their shareholdings.Rob7Lee said:
Personally I'd ALWAYS drip feed, too dangerous to lump in all in one with the markets as they are.mendonca said:To the investors, what are your plans for the next ISA year starting from 6th April?
Personally, I'm torn between the usual. Fully invest the £20k into my current funds, or drip feed as the months go by. Will markets continue to perform to current levels, or will they take a dip soon. Another year, same old questions.
I don't think anybody, even Investment Managers saw this level of bounce coming from November.
for who saw the bounce coming, quote a few in the CL FTSE100 comp!
For me next year will be the first year I may actually take a cash ISA as well rather than just a S&S. I'm into my 50's now and heading towards retirement. My SIPP is obviously heavy in S&S's so time to de-risk a little I think, but will do so with things like CASH ISA's.
https://on.ft.com/3VxINkWLink should open at least for the first 3 who click it
Hmm.0 -
Monument Bank (https://www.monument.co/) offering 5.11% on instant access and slightly more if you lock up for a year. Minium deposit £25,000. Anyone any experience of using them - thoughts?0
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I stopped working just about two years ago, aged 57. Since then I have been living modestly on interest income. Rates went up at the perfect time for me.I will be selling a house in the next few months (I hope!) and the split of my assets post sale, assuming nothing much changes, will be pensions 35%, cash 50% and S&S ISAs 15%, so about 50/50 cash and equities in total. As a priority I'll be looking for some reasonable fixed interest investments before rates start to drop too much, then be moving some cash into S&S ISAs for me and Mrs Idle as existing fixes expire to increase the equity proportion a bit, but absolutely in a more cautious drip-fed way as Rob suggests.Looking at the performance of the markets over the last six months, i cant see the bull run continuing at that rate for very much longer, though the prospect of interest rate cuts will give it some further legs to the extent they aren't already priced in, though I suspect they mostly are.1
