Savings and Investments thread

Rob7Lee · 10:08AM

Had a note from Fidelity (where I hold my main SIPP)

Important notice: Increased processing times for tax-free cash (TFC) payments

Due to increased demand, TFC payments are taking longer than usual to process. To receive payment by 26 November, please submit your instruction by 7 November so we can process it in time. Once you've submitted your TFC withdrawal request, it cannot be cancelled.

So clearly a lot of people taking out their tax free cash amount before the budget! Not sure Rachel from Accounts is really helping matters..........

LargeAddick · 10:18AM

I’d take mine out if I hadn’t already !,

Rob7Lee · 10:58AM

LargeAddick said:

I’d take mine out if I hadn’t already !,

So would I if I was 55! Sadly just about to turn 53.......

LargeAddick · 11:15AM

Rob7Lee said:

LargeAddick said:

I’d take mine out if I hadn’t already !,

So would I if I was 55! Sadly just about to turn 53.......

Not long to go ...

bobmunro · 11:21AM

Rob7Lee said:

LargeAddick said:

I’d take mine out if I hadn’t already !,

So would I if I was 55! Sadly just about to turn 53.......

Do you sneak in at 55 before it rises to 57?

Rob7Lee · 11:32AM

bobmunro said:

Rob7Lee said:

LargeAddick said:

I’d take mine out if I hadn’t already !,

So would I if I was 55! Sadly just about to turn 53.......

Do you sneak in at 55 before it rises to 57?

Yes, by a few months!

golfaddick · 12:51PM

My firm's compliance team are all over this & very frowned upon to be taking TFC upon idle speculation.

Fwiw.......my view is that IF there are any changes to the TFC limit in the Budget they wont happen overnight on the 26th & at the very earliest it will from the next tax year (so 6th April 2026).

In addition, past changes to pension allowances ( Lifetime & Annual) have had protections put into place so that current levels would be honoured going forward. So, IF Rachel Reeves decided to reduce the TFC limit to, say, £100k then anyone currently having more than £400k in their pension pot(s) would have the relevant 25% protected. So if you currently have £500k in your pension & could take £125k as a Tax Free lump sum then this would be protected going forward.

That is my view & has been the norm for over 50 years. When Personal Pensions came in in 1988 the TFC limit was 25%. Older Retirement Annuity plans (RAC) had TFC at 33%. These stayed as they were.

I think there will be a lot of "buyers remorse" come Budget Day. Lots of people with thousands of pounds sitting in Cash Deposits being taxed whilst others will have their money in their pensions growing tax-free.

jose · 1:23PM

I got £275 off the premium bonds this month.
One more like that could pay for a season ticket.

PragueAddick · 2:35PM

Rob7Lee said:

PragueAddick said:

Rob7Lee said:

You all need to take stop losses and at times sell at a loss. Over 6-7 years I’ve done well on Metro bank. But have twice sold at a loss.

my mate is still holding what he bought when I first did and he’s down about 70%. Sometimes selling is the best, even if a loss.

The thing is, the reasons why I bought NN still hold good today.

The loss says otherwise....... I always try to remember that you also have money sitting in that share (currently at a loss) that could otherwise potentially be growing elsewhere rather than just waiting to get back what you once invested.

It's not an American meme stock. It's a real, solid, decent company and as I said I originally bought it as an income stock. Who does not know somebody who is taking Ozempic/Wegovy? FWIW more than half of the analyst consensus on Degiro is Buy or Strong Buy. I'm just holding.

Solidgone · 3:41PM

Do you think it is now wise for me to cash in my £10 post office savings stamps. I stopped paying in 2 bob a week some time ago but wondering what the value would be should I decide to cash them in 🥸

meldrew66 · 4:33PM

jose said:

I got £275 off the premium bonds this month.
One more like that could pay for a season ticket.

….come join us in the cheap seats and you won’t need a second win!

bobmunro · 4:47PM

Solidgone said:

Do you think it is now wise for me to cash in my £10 post office savings stamps. I stopped paying in 2 bob a week some time ago but wondering what the value would be should I decide to cash them in 🥸

I've just done a some complicated mathematics, looked at the compound growth since, I've assumed, 1970 as you were investing in shillings (could be longer but have taken 1970 as the benchmark), analysed market trends for the same period (had to guess some as the data available pre-1990 is sketchy), applied inferential and predictive analysis methods and some regression analysis, and also applied a Bayesian statistical approach.

The final outcome calculation, with a 95% confidence level, very roughly approximated to £10.

Rob7Lee · 4:59PM

golfaddick said:

My firm's compliance team are all over this & very frowned upon to be taking TFC upon idle speculation.

Fwiw.......my view is that IF there are any changes to the TFC limit in the Budget they wont happen overnight on the 26th & at the very earliest it will from the next tax year (so 6th April 2026).

In addition, past changes to pension allowances ( Lifetime & Annual) have had protections put into place so that current levels would be honoured going forward. So, IF Rachel Reeves decided to reduce the TFC limit to, say, £100k then anyone currently having more than £400k in their pension pot(s) would have the relevant 25% protected. So if you currently have £500k in your pension & could take £125k as a Tax Free lump sum then this would be protected going forward.

That is my view & has been the norm for over 50 years. When Personal Pensions came in in 1988 the TFC limit was 25%. Older Retirement Annuity plans (RAC) had TFC at 33%. These stayed as they were.

I think there will be a lot of "buyers remorse" come Budget Day. Lots of people with thousands of pounds sitting in Cash Deposits being taxed whilst others will have their money in their pensions growing tax-free.

Thats sort of my point, the fear factor is causing it, but that's human nature and something Rachel from Accounts should have considered.

Covered End · 5:47PM

Rob7Lee said:

golfaddick said:

My firm's compliance team are all over this & very frowned upon to be taking TFC upon idle speculation.

Fwiw.......my view is that IF there are any changes to the TFC limit in the Budget they wont happen overnight on the 26th & at the very earliest it will from the next tax year (so 6th April 2026).

In addition, past changes to pension allowances ( Lifetime & Annual) have had protections put into place so that current levels would be honoured going forward. So, IF Rachel Reeves decided to reduce the TFC limit to, say, £100k then anyone currently having more than £400k in their pension pot(s) would have the relevant 25% protected. So if you currently have £500k in your pension & could take £125k as a Tax Free lump sum then this would be protected going forward.

That is my view & has been the norm for over 50 years. When Personal Pensions came in in 1988 the TFC limit was 25%. Older Retirement Annuity plans (RAC) had TFC at 33%. These stayed as they were.

I think there will be a lot of "buyers remorse" come Budget Day. Lots of people with thousands of pounds sitting in Cash Deposits being taxed whilst others will have their money in their pensions growing tax-free.

Thats sort of my point, the fear factor is causing it, but that's human nature and something Rachel from Accounts should have considered.

She/they know what they are doing.
I presume they are hoping that a fair amount will go into the economy rather than alternative savings/investments.

Carter · 5:55PM

Covered End said:

Rob7Lee said:

golfaddick said:

My firm's compliance team are all over this & very frowned upon to be taking TFC upon idle speculation.

Fwiw.......my view is that IF there are any changes to the TFC limit in the Budget they wont happen overnight on the 26th & at the very earliest it will from the next tax year (so 6th April 2026).

In addition, past changes to pension allowances ( Lifetime & Annual) have had protections put into place so that current levels would be honoured going forward. So, IF Rachel Reeves decided to reduce the TFC limit to, say, £100k then anyone currently having more than £400k in their pension pot(s) would have the relevant 25% protected. So if you currently have £500k in your pension & could take £125k as a Tax Free lump sum then this would be protected going forward.

That is my view & has been the norm for over 50 years. When Personal Pensions came in in 1988 the TFC limit was 25%. Older Retirement Annuity plans (RAC) had TFC at 33%. These stayed as they were.

I think there will be a lot of "buyers remorse" come Budget Day. Lots of people with thousands of pounds sitting in Cash Deposits being taxed whilst others will have their money in their pensions growing tax-free.

Thats sort of my point, the fear factor is causing it, but that's human nature and something Rachel from Accounts should have considered.

She/they know what they are doing.
I presume they are hoping that a fair amount will go into the economy rather than alternative savings/investments.

With her doing her best to stitch up anything remotely entrepreneurial or that works for a living I don't blame anyone for taking a safe option and putting their money in safe boring but non-economy stimulating products to avoid any unpredictability. Regardless of how returns from market investments way out-perform these products the PR of that is non-existent. Plus they seem intent on playing some stupid sleight of hand game, leaking things to test the water as opposed to being decisive and leading.

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