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  • FIRST POST
    • Gatser
    • By Gatser 14th Dec 09, 1:44 PM
    • 578Posts
    • 213Thanks
    Gatser
    Pensions Planning: The NUMBER
    • #1
    • 14th Dec 09, 1:44 PM
    Pensions Planning: The NUMBER 14th Dec 09 at 1:44 PM
    The NUMBER is how much income you need to "live comfortably"
    So What's your number?
    Very important for pensions planning, to know what you are aiming for.

    My Number? (for a couple)
    I calculated: £22,000
    based on
    Food £5,000
    Car/transport £5,000
    Bills/Utilities £4,500
    Holidays/Leisure £4,500
    Clothing/Cash/Xmas/Other £2,000
    Repairs/replacements £1,000
Page 62
    • Linton
    • By Linton 10th Feb 18, 3:51 PM
    • 9,032 Posts
    • 9,120 Thanks
    Linton
    Like Gadget, I also have a strategy of running down the SIPPs as quickly as possible, keeping just within our current tax bands. This will give extra tax space in later years when we take our deferred SPs.

    One important side effect of this strategy is that it affects where one holds one's assets. It makes most sense to hold safe assets (eg bond and Wealth Preservation funds) in the SIPPs, and higher risk/return and income generating assets in S&S ISAs. One doesnt want to go to all the effort of maximising one's drawdown only to discover that the SIPP has actually increased in size over the year thanks to good investment returns. Also there is the problem of being out of the market for around 2 weeks during the transfer - Bestinvest wants the cash to be available for transfer about 2 weeks before the payment date. If one holds safe investments in the SIPP this should not present any great risk.
    • gadgetmind
    • By gadgetmind 10th Feb 18, 4:38 PM
    • 10,758 Posts
    • 8,650 Thanks
    gadgetmind
    Bestinvest wants the cash to be available for transfer about 2 weeks before the payment date.
    Originally posted by Linton
    Sorry, which transfer is this? PCLS?
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
    • Linton
    • By Linton 10th Feb 18, 6:10 PM
    • 9,032 Posts
    • 9,120 Thanks
    Linton
    Sorry, which transfer is this? PCLS?
    Originally posted by gadgetmind
    A taxed withdrawal. Everything must be in place to go through the PAYE monthly run to be drawn down at the start of the month.
    • gadgetmind
    • By gadgetmind 10th Feb 18, 6:19 PM
    • 10,758 Posts
    • 8,650 Thanks
    gadgetmind
    OK, thanks. I'm running main SIPP at 4% cash currently so that will cover 8 months of drawdown, and dividends will replenish enough to keep things ticking.

    I'm going to enter drawdown in April (once LTA gets a boost) and it's all rather new and a bit scary!
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
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