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Help with drawdown strategy
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Charges quoted on the II website are as follows.
'Flexi–access drawdown, per annum£170 + VAT.
Uncrystallised Funds Pension Lump Sum (UFPLS) £40 + VAT'
There are a few notes and conditions associated with the above, which I haven't totally analysed and understood!0 -
We are in our mid 50's but would like to reduce to part time in the next couple of years and see how that goes rather than just stopping all work suddenly. If we like it we may retire fully more quickly, it would be nice to have the options.
As for and IFA, I would be happy to pay a one off fee with an IFA who could go over the options , check my assumptions and write me out a plan, but all seem to want a yearly fee for continuing advice and I am trying to keep my costs down. Thank heavens for this forum.
we are in our mid 60's now and both drawing SP's plus couple of small pensions. topping up with tax free money from investment account.
We scaled down work starting in early 60's moving from full time to 3 days then two then none. Its a good transition and we are delighted we did it that way.
You have time on your side . load up on your isa's ??
Fully appreciate the need & your desire to keep costs down . we figured using a goof IFA was very cost effective for us and that has proven to be the case ......its early days 3 years in...so far so good. (I could not trust myself not to "tamper"if /when markets fall!!!!)
we have about 200k in DC personal pensions and same in isa's plus 50k in investment /cash a/c for DD.
we tend to keep working cash balance in bank of about 15k ( for emergency purposes/unforseen expenses). that represents about 18months DD for us.0 -
So roughly 3% income wanted from 300K pension plus 250K ISA?
Just mulling the simplest plan, which I know isn't objectively the best, but let's see how it does.
1. Crystallise everything, 225K goes into drawdown and 75K tax free lump sum.
2. Assume 250K ISA, 225K drawdown fund and unused portion of 75K in dealing account are all invested in the same way
3. Withdraw enough from pension each year to use up personal allowance
4. It takes about three years to use up almost all the 75K, 20K goes into ISA each year plus a few K taken to get income up to to target. The tax on dividends from 75K will be virtually nothing, I calculate £20 for the first year, assuming 2K dividend allowance and no CGT.
5. Once the lump sum is used up, supplement pension from ISA.
Don't let natural income be a constraint, it's very artificial and means you won't be looking at the issues that matter. But if you must use that as your withdrawal algorithm, then realise that selling 100 shares in one account and buying 100 in another means no change in the overall number of shares, you've effectively just shifted 100 shares from one account to the other.
In terms of maintaining allocations, just have a spreadsheet where you add up your shares across all accounts, in the early years you will be buying in one account while selling in another, you can make buy and selling choices so you are constantly moving towards you target allocation.0 -
Goodness me! (explicit language self censored). Where is the easy to understand guide to this. I only have 3 years to get my head around it :eek:
Seriously, is it me or is this more complicated than it should be.0 -
It's not too bad once you get used to it. The getting used to it bit can take a while, though!
There are a range of options and different ways to do things to cater to the different situations that people are in, so each can do whatever is best for their own situation.0
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