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  • FIRST POST
    • Ian66
    • By Ian66 19th May 17, 5:16 PM
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    Ian66
    Bridging Fund to DB Pensions Invest or not?
    • #1
    • 19th May 17, 5:16 PM
    Bridging Fund to DB Pensions Invest or not? 19th May 17 at 5:16 PM
    Hi All,

    OH & I are nearing implementation of our plan to Retire early from April next year, essentially via depletion of funds to bridge gap to DB Pensions. We are mortgage and debt free.

    Equity realised from a property sale has been moved into SIPPs to secure tax relief benefits and currently held as cash. Work DC Pensions currently being maximised for Employer Contributions. Total SIPP / DC Pensions Value at April 2018 will be 120k.

    Additional to this we have 45k in Cash and 65k in S&S ISA.

    Main Drawdown Plan strategy is to utilise SIPPs below Personal Allowances, supplement with Cash where required and ISA held as Backup Fund. Target Spend is 25k pa.

    Driven by DB release dates, the Spend Profile is as follows:-
    • OH SIPP; 70k; Drawdown to depletion from April 18 to Dec 22 (4yrs 9months)
    • Cash; 35k; Drawdown to depletion from April 18 to Oct 21 (3yrs 6months)
    • Me SIPP; 50k; Drawdown to depletion from Oct 21 to Oct 26 (5yrs)
    OH DB Pension kicks in Dec 22 @11k pa (Plus 30k TFLS)
    My DB Pension kicks in Oct 26 @21k pa (Plus 50k TFLS)

    Considering the short time frame, Ive cautiously remained in cash for SIPPs. However, with the recent shift in interest rates, Im increasingly of the view that I need to invest a chunk of the SIPPs. My target is only to offset interest rate impacts as the Bridging Fund is depleted.

    Given the above, how would you go forward? Invest or not? And if Yes, what would be your approach?

    Thanks
Page 1
    • bostonerimus
    • By bostonerimus 19th May 17, 6:53 PM
    • 1,114 Posts
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    bostonerimus
    • #2
    • 19th May 17, 6:53 PM
    • #2
    • 19th May 17, 6:53 PM
    I like your tax minimization strategy, but you might want to also consider that by withdrawing from the DC pensions you are giving up tax deferred growth so keep that as low as is convenient. I like that you are keeping the ISA as a backup.

    I'm a little confused about how much time gap between retirement and DB starting that you need to bridge, but I suggest that you keep an overall asset allocation that has at least 50% equities. With DB pensions you can take some risk. Do you actually have to deplete your DC to make it to DB start? Think about them as income generators rather than pots of money to spend.
    • Linton
    • By Linton 19th May 17, 8:14 PM
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    Linton
    • #3
    • 19th May 17, 8:14 PM
    • #3
    • 19th May 17, 8:14 PM
    I share Bostonerimus's confusion as you dont seem to have allocated enough money to finance your 25K requirement, at least until OH's DB pension starts with its TFLS.

    You dont seem to have made any allowance for inflation.

    However, starting from your numbers.....
    I suggest that you keep your requirements for the period until Dec 2022 in cash. This is the period during which you are most tight for money and so you cant take major risks with satisfying your needs. Add in a bit of emergency cash, but anything beyond that can reasonably be held in equities.

    Then when the OH TFLS arrives you will have nearly sufficient cash to last you until the end of 2025 so you will only need to release a small part of your equity. Beyond 2026 you seem to have more than enough guaranteed income to meet your needs so you can keep a large % of your wealth in equity.

    When do your State Pensions become payable? They will make your position even more secure.
    Last edited by Linton; 19-05-2017 at 8:17 PM.
    • bostonerimus
    • By bostonerimus 19th May 17, 8:42 PM
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    bostonerimus
    • #4
    • 19th May 17, 8:42 PM
    • #4
    • 19th May 17, 8:42 PM
    Of course its Dec 2022 and Oct 2026....silly me
    • kidmugsy
    • By kidmugsy 19th May 17, 10:25 PM
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    kidmugsy
    • #5
    • 19th May 17, 10:25 PM
    • #5
    • 19th May 17, 10:25 PM
    Having paid off your mortgage makes things look rather tight. Might it not be wise to open a mortgage now while you both still have jobs and interest rates are low? You can pay it back in an accelerated way once your DB pensions and State Retirement Pensions are in payment.
    • bostonerimus
    • By bostonerimus 19th May 17, 10:33 PM
    • 1,114 Posts
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    bostonerimus
    • #6
    • 19th May 17, 10:33 PM
    • #6
    • 19th May 17, 10:33 PM
    I've successfully done just what you are doing. I retired at 52 and my pension didn't start until age 55 and I lived off savings and investments fro 3 years.

    OK so it looks like you'll have 230k to draw from when you retire in 2018 and you need to generate an inflation adjusted 25k. Let's assume 2% inflation and a 5% return from a fairly conservative portfolio maybe (50/50). You haven't mentioned if the DB pensions are inflation adjusted or if you get state pension so I won't include either in the estimates......you'll be ok without either and rolling in it if you do get those benefits.

    in 2022 you should have 150k in your SIPP/ISA/Cash pot. Then you gat the first pension and a lump sum and so your SIPP/ISA/Cash pot will jump up a bit and end back at about 150k in 2026 when the next pension and lump sum will put you back into accumulation territory (assuming you are still drawing an inflation adjusted 25k) In 2047 with the numbers I assume the SIPP/ISA/Cash pot will be around 400k.

    If you get state pension too you will be even better off.....your 25k income requirement should be more than met by your savings and pensions. Even if you were really conservative and put everything into a savings bond ladder and you only got 2% annual return you'd still be ok.......that's assuming inflation stays at 2%......but it inflation were to go up so would the return from your savings bond ladder. You are in a good position.
    Last edited by bostonerimus; 19-05-2017 at 10:48 PM.
    • Ian66
    • By Ian66 20th May 17, 10:57 AM
    • 19 Posts
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    Ian66
    • #7
    • 20th May 17, 10:57 AM
    • #7
    • 20th May 17, 10:57 AM
    I've successfully done just what you are doing. I retired at 52 and my pension didn't start until age 55 and I lived off savings and investments fro 3 years.

    OK so it looks like you'll have 230k to draw from when you retire in 2018 and you need to generate an inflation adjusted 25k. Let's assume 2% inflation and a 5% return from a fairly conservative portfolio maybe (50/50). You haven't mentioned if the DB pensions are inflation adjusted or if you get state pension so I won't include either in the estimates......you'll be ok without either and rolling in it if you do get those benefits.

    in 2022 you should have 150k in your SIPP/ISA/Cash pot. Then you gat the first pension and a lump sum and so your SIPP/ISA/Cash pot will jump up a bit and end back at about 150k in 2026 when the next pension and lump sum will put you back into accumulation territory (assuming you are still drawing an inflation adjusted 25k) In 2047 with the numbers I assume the SIPP/ISA/Cash pot will be around 400k.

    If you get state pension too you will be even better off.....your 25k income requirement should be more than met by your savings and pensions. Even if you were really conservative and put everything into a savings bond ladder and you only got 2% annual return you'd still be ok.......that's assuming inflation stays at 2%......but it inflation were to go up so would the return from your savings bond ladder. You are in a good position.
    Originally posted by bostonerimus

    Thanks Bostonerimus,

    Your figures align with mine, and in response to your queries both DB Pensions are inflation adjusted and SP's are @6.5k pa each with COPE reductions, so the position post Oct 26 when both DB Pensions are in payment is comfortable.

    My concern is how to balance investment risk for the overall Bridging Fund from April 18 to Oct 26 to offset inflationary erosion? You mention a 5% return from a 50/50 portfolio which would more than suffice, any pointers on your proposed composition of this? Also I'm interested in the "Savings Bond Ladder" you refer to - do you have any particular products you have used and is it available wrapped in SIPP or ISA?

    Post Dec 22 when OH DB Pension & TFLS is in payment, this will provide a platform for equity focussed investing, but I feel a more cautious decumulation strategy is required prior to this?

    Cheers
    • Ian66
    • By Ian66 20th May 17, 12:53 PM
    • 19 Posts
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    Ian66
    • #8
    • 20th May 17, 12:53 PM
    • #8
    • 20th May 17, 12:53 PM
    I share Bostonerimus's confusion as you dont seem to have allocated enough money to finance your 25K requirement, at least until OH's DB pension starts with its TFLS.

    You dont seem to have made any allowance for inflation.

    However, starting from your numbers.....
    I suggest that you keep your requirements for the period until Dec 2022 in cash. This is the period during which you are most tight for money and so you cant take major risks with satisfying your needs. Add in a bit of emergency cash, but anything beyond that can reasonably be held in equities.

    Then when the OH TFLS arrives you will have nearly sufficient cash to last you until the end of 2025 so you will only need to release a small part of your equity. Beyond 2026 you seem to have more than enough guaranteed income to meet your needs so you can keep a large % of your wealth in equity.

    When do your State Pensions become payable? They will make your position even more secure.
    Originally posted by Linton

    Thanks Linton,

    Combining the 155k set out in my original post with 40k OH DB Pension & 20k OH TFLS provides the 215k required till Oct 26. This leaves 65k ISA and 10k Cash as backup, and whilst my DB TFLS of 50k landing Oct 26 falls just after the Drawdown period it does provide additional comfort.

    We are also considering downsizing sometime post Jan 19 which should release equity of @ 50k.

    To answer your query, SP's land Dec 28 & Oct 33, both @ 6.5k with COPE reductions.

    Your observation about a lack of allowance for inflation is key and capital value erosion is my main concern. I had previously planned to invest both SIPPs in a cautious mixed portfolio to offset inflation only, but given the short time frame for drawdown of OH SIPP in particular this now feels unrealistic. I'm not aware of any product available in a SIPP which effectively replicates a standard saving vehicle that protects capital and provides a fixed interest return?

    Your advice to hold funding required for the period until Dec 2022 in cash and supplement with a bit of emergency cash, then invest remainder therefore chimes with my current thoughts and is welcome reassurance. Next step is to develop a portfolio to suit - any thoughts on broad composition of this?

    Cheers
    • Ian66
    • By Ian66 20th May 17, 1:05 PM
    • 19 Posts
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    Ian66
    • #9
    • 20th May 17, 1:05 PM
    • #9
    • 20th May 17, 1:05 PM
    Having paid off your mortgage makes things look rather tight. Might it not be wise to open a mortgage now while you both still have jobs and interest rates are low? You can pay it back in an accelerated way once your DB pensions and State Retirement Pensions are in payment.
    Originally posted by kidmugsy

    Thanks Kidsmugsy,

    This has previously been advised to us, but as the family home is too large for us now we intend to downsize sometime post Jan 19 which should release equity of @ 50k.

    Also, as our SP's don't land until Dec 28 & Oct 33 (both @ 6.5k with COPE reductions) this is probably too long a time frame to the make the proposal workable?

    Cheers
    • Linton
    • By Linton 20th May 17, 1:26 PM
    • 8,483 Posts
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    Linton
    ....
    Also, as our SP's don't land until Dec 28 & Oct 33 (both @ 6.5k with COPE reductions) this is probably too long a time frame to the make the proposal workable?
    Originally posted by Ian66
    It would seem you should have plenty of time to bring your pensions up to the full amount with voluntary NI contributions.
    • bostonerimus
    • By bostonerimus 20th May 17, 2:28 PM
    • 1,114 Posts
    • 624 Thanks
    bostonerimus
    Thanks Bostonerimus,

    Your figures align with mine, and in response to your queries both DB Pensions are inflation adjusted and SP's are @6.5k pa each with COPE reductions, so the position post Oct 26 when both DB Pensions are in payment is comfortable.

    My concern is how to balance investment risk for the overall Bridging Fund from April 18 to Oct 26 to offset inflationary erosion? You mention a 5% return from a 50/50 portfolio which would more than suffice, any pointers on your proposed composition of this? Also I'm interested in the "Savings Bond Ladder" you refer to - do you have any particular products you have used and is it available wrapped in SIPP or ISA?

    Post Dec 22 when OH DB Pension & TFLS is in payment, this will provide a platform for equity focussed investing, but I feel a more cautious decumulation strategy is required prior to this?

    Cheers
    Originally posted by Ian66
    What I did when I retired 3 years before my pension started was to put 1 year of spending in a high interest immediate access savings account in addition to the 6 months of cash I keep in the bank in case the market tanked. The rest of my DC pension money and investments were in a roughly 60/40 mix (equity/bond) of index trackers....so something like VLS60. I'm in the US and my asset allocation was domestically focussed so I was around 40% US equity, 20% International equity, 40% US bond market. If you want to use a savings bond ladder along with your cash in place of a short term bond allocation....or in place of some equity if you are conservative...then just buy savings bonds of various durations (1,2,3,4,5 years) being aware of the insured limit.
    Last edited by bostonerimus; 20-05-2017 at 2:38 PM.
    • Triumph13
    • By Triumph13 21st May 17, 9:20 AM
    • 1,102 Posts
    • 1,342 Thanks
    Triumph13
    Whilst I'd agree that your numbers add up, I personally don't think they make sense. You are going to be really tight for money during the years you are young and healthy enough to have fun and travel, and then loaded when you are ancient and decrepit.


    Your plan has you living on 25k pa until 2026 then 30k until 2028, 35k to 2033 and 40k thereafter.
    You should be able to change that to 35k pa all the way from 2018 to 2033 and still have 40k thereafter. Without spending any of your ISA money. And never drop below 20k in your cash reserves.


    How is this miracle achieved? Simply a) take your own DB scheme at 56 instead of 60; and b) spend about 10k on voluntary NICs to get you both up to the full state pension. I've assumed a 20% reduction in your DB by taking it earlier - you'd need to check this with your scheme, but LGPS would be a 17% or 18% reduction so it shouldn't be much more than 20%.


    I know they normally say delay your DBs as much as you can, but in this case that's not what I'd be doing.
    Last edited by Triumph13; 21-05-2017 at 2:54 PM.
    • Ian66
    • By Ian66 22nd May 17, 8:32 PM
    • 19 Posts
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    Ian66
    Whilst I'd agree that your numbers add up, I personally don't think they make sense. You are going to be really tight for money during the years you are young and healthy enough to have fun and travel, and then loaded when you are ancient and decrepit.


    Your plan has you living on 25k pa until 2026 then 30k until 2028, 35k to 2033 and 40k thereafter.
    You should be able to change that to 35k pa all the way from 2018 to 2033 and still have 40k thereafter. Without spending any of your ISA money. And never drop below 20k in your cash reserves.


    How is this miracle achieved? Simply a) take your own DB scheme at 56 instead of 60; and b) spend about 10k on voluntary NICs to get you both up to the full state pension. I've assumed a 20% reduction in your DB by taking it earlier - you'd need to check this with your scheme, but LGPS would be a 17% or 18% reduction so it shouldn't be much more than 20%.


    I know they normally say delay your DBs as much as you can, but in this case that's not what I'd be doing.
    Originally posted by Triumph13



    Thanks Triumph13,

    Agree wholeheartedly with your observation that the funding profile is effectively skewed the opposite way to what I will need / want.

    Your proposal to take my DB at 56 may be a non-starter as the LGPS website quotes deductions of around 50% for this. In taking my DB at 60 I suffer a small deduction but a large proportion of it is protected due to it being accrued prior to scheme change in 2008. These protections are removed if I take it before 60. I will enquire directly with LGPS to obtain an actual figure though.

    Your advice to make voluntary NICs to get the full SP has been advised by others on this thread also and although not considered previously, I will look into.

    So the challenge is how to effectively front fund the profile in a different way to provide an additional @10k pa over the initial 8.5 year period to Oct 2026. Some initial thoughts on options I have had are:-

    • Downsizing is planned 6 to 12 months after April 2018 which we expect to release @ 50k. This could cover @ 4.5 years of the initial period and fund additional NICs.
    • OH could exchange part of her DB for an enhanced TFLS at Dec 2022. Scheme provision is TFLS increased by 12 times the value of Pension exchanged, so an additional 40k would require a Pension sacrifice of @3.4k pa
    • Kidsmugsy proposed a mortgage to provide additional funds earlier in the thread. My thinking here is to borrow @ 40k on an interest only basis to cover the 4 year period to Oct 2026 and facilitate full repayment of this utilising part of my 50k TFLS and/or enhanced TFLS via Pension Sacrifice as (2) above . What would be tricky here I expect would be securing this borrowing when neither of us are in work?

      Need to consider timings and respective benefits further but seems achievable. Thanks for the shift in thinking, really useful.

    Any thoughts?

    Cheers
    • mgdavid
    • By mgdavid 23rd May 17, 9:37 AM
    • 5,244 Posts
    • 4,426 Thanks
    mgdavid
    .......... What would be tricky here I expect would be securing this borrowing when neither of us are in work?
    .........
    Originally posted by Ian66
    you'd need to do the borrowing while still working, no need to share your early retirement plans with any lenders!
    A salary slave no more.....
    • bostonerimus
    • By bostonerimus 23rd May 17, 1:30 PM
    • 1,114 Posts
    • 624 Thanks
    bostonerimus
    Ian Triumph (edit reason: idiocy) you are in good shape. $25k should be no problem and you could take out a bit more if you stay aware of your returns and balances and have the flexibility to reduce your spending if the markets fall. As you have significant guaranteed income in pensions I thought of you when I saw this recent article. It is interesting.

    https://www.onefpa.org/journal/Pages/APR17-The-Impact-of-Guaranteed-Income-and-Dynamic-Withdrawals-on-Safe-Initial-Withdrawal-Rates.aspx
    Last edited by bostonerimus; 23-05-2017 at 4:24 PM.
    • Triumph13
    • By Triumph13 23rd May 17, 2:46 PM
    • 1,102 Posts
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    Triumph13
    Triumph you are in good shape. $25k should be no problem and you could take out a bit more if you stay aware of your returns and balances and have the flexibility to reduce your spending if the markets fall. As you have significant guaranteed income in pensions I thought of you when I saw this recent article. It is interesting.

    https://www.onefpa.org/journal/Pages/APR17-The-Impact-of-Guaranteed-Income-and-Dynamic-Withdrawals-on-Safe-Initial-Withdrawal-Rates.aspx
    Originally posted by bostonerimus
    I know I'm in good shape. It's Ian66 that we are trying to help out here!
    • Triumph13
    • By Triumph13 23rd May 17, 2:59 PM
    • 1,102 Posts
    • 1,342 Thanks
    Triumph13
    So the challenge is how to effectively front fund the profile in a different way to provide an additional @10k pa over the initial 8.5 year period to Oct 2026. Some initial thoughts on options I have had are:-

    • Downsizing is planned 6 to 12 months after April 2018 which we expect to release @ 50k. This could cover @ 4.5 years of the initial period and fund additional NICs.
    • OH could exchange part of her DB for an enhanced TFLS at Dec 2022. Scheme provision is TFLS increased by 12 times the value of Pension exchanged, so an additional 40k would require a Pension sacrifice of @3.4k pa
    • Kidsmugsy proposed a mortgage to provide additional funds earlier in the thread. My thinking here is to borrow @ 40k on an interest only basis to cover the 4 year period to Oct 2026 and facilitate full repayment of this utilising part of my 50k TFLS and/or enhanced TFLS via Pension Sacrifice as (2) above . What would be tricky here I expect would be securing this borrowing when neither of us are in work?
    Originally posted by Ian66

    As others have said, your best plan is probably to secure a mortgage whilst still in work so that you can use that to get you over the tricky period if necessary. Rather than pay my own mortgage off I got an offset mortgage and keep enough in the associated current and savings accounts to have a roughly nil balance and pay no interest, but I get to keep the line of credit as an emergency fund. You may wish to look at something similar.
    Downsizing may solve the problem for you, but beware - many people seem to find that after all the costs are taken into account it realises a lot less cash than they hoped.
    OH taking her pension early wouldn't help as the crunch doesn't come until after the date already planned.
    If you want to live off 35k pa then by the day before your pension kicks in you will have burnt through roughly 110k - including most of OHs voluntary NICs, but leaving most of yours for later. That number is exactly what you have in cash and ISAs so you can, theoretically, fund it from what you have if your cash / investments just keep pace with inflation. It leaves you with no breathing room at all though - which is why a mortgage facility you can draw down in in the last 18 months before your DB kicks in and then pay off from your DB lump sum would give you the cushion you need.
  • jamesd
    The low and uncertain potential 5% from a 50:50 bond/equity mixture doesn't really seem sensible for money which could be outside a pension at the moment. You can quite easily get something like 10% in interest from peer to peer lending at the moment, after allowing a couple of percent for bad debt on secured loans.

    One P2P example that could initially be handy is Ablrate, which expects to have their innovative finance ISA available in a few weeks. You could do an ISA transfer of the 110k in ISAs or if the cash isn't in an ISA use that for 40,000 of new subscriptions. That would probably generate about 11k a year of tax exempt income, more likely around 12k because the bad debt allowance I used is quite cautious.

    MoneyThing offers similar performance but no ISA in the immediate future, though later they do plan to do one. Taking the tax free lump sum from the SIPPs as early as possible to reinvest here seems like a good move. From 120k of SIPPs that's 30k to invest to generate 3k a year of income that will probably be within the personal savings allowance and starter rate for savings, so untaxed.

    That's around 14k of nil tax income provided for so far.

    If still working it wouldn't yet be desirable to take taxable money out of the SIPPs, because that would trigger the money purchase annual allowance and reduce the value of contributions allowed from 40k to 4k a year. However the small pot rule does allow taking all of a pot worth up to 10k without triggering that so with two of you it could allow withdrawing another 60,000. This is taxable, either 100% taxable if you have already taken 25% tax free or 25%:75% tax free: taxable split. Probably not worth using the small pot rule since you don't need it and normal drawing within your personal allowance will save tax but the benefit is getting the money more quickly into investments producing stable income so it might still be worth doing.

    Once it is sensible to take taxable money from the SIPPs it seems that the personal allowance will allow withdrawing 11,500 a year by each of you free of income tax. Worth doing that much every year to reduce the amount of income taken from the ISAs and allow them to grow.
    Last edited by jamesd; 26-05-2017 at 3:25 PM.
  • jamesd
    You wrote that your work DC pensions are currently being maximised for employer contributions but that's a bit ambiguous. Does this mean that you are only paying in what will get employer contributions, that you are both paying in 100% of gross pay or something else?

    You almost certainly should be looking to pay in 100% of gross pay as your gross pension contribution value. This makes 25% of your pay tax free because you can take it out of a pension later as a tax free lump sum, from age 55. Fast and easy gain there, with no investment risk and you seem to have the savings to fund doing it.

    Once it comes to time to take money out of pensions a question is whether to stick to just the amount within your personal allowance or not. I'm inclined to go with not in your situation because I think that getting it out and into P2P will better meet your needs for fixed interest investment part than leaving it there. So I'd be inclined to draw from the DC up to your basic rate band for a couple of years, 33,500 a year above your personal allowance.

    To avoid paying the 6,700 income tax on that I'd spend 22,000 on buying say the Albion VCT. HMRC will refund 30% of the purchase price capped at income tax payable in the tax year of purchase, so 6,600 back from them. Just 100 of unrecovered income tax so just draw 500 less taxable from the pensions. This VCT expects to pay tax exempt dividends of about 7%, equivalent to about 10% on the net after tax relief amount invested. That's 1,540 a year of ongoing tax exempt income per 22,000 buy. A VCT must be held for at least five years or the initial tax relief has to be repaid. A net capital loss on sale of around 10% plus 1% per year held should be planned for given the level of the buyback guarantee and initial purchase costs. 1% is because there might be that much beyond income bring paid out, though sales within the VCT or eventually if that doesn't happen a lower dividend might happen instead. You don't have to sell and since the tax exempt income is useful I don't think that you should.

    I like that particular VCT because it does only asset backed investing, in things like some new care homes, some hotels, a couple of schools and assorted green power things, so there is protection from large value drops and fairly stable values. It's my own largest VCT holding.

    For money left within the SIPPs you could use a global equity tracker fund, since you'll have lots of fixed interest outside the pension.

    If you do all of these things I don't think that you should be planning for much if any loss of capital. The VCT and P2P investments look able to meet your income need with no ongoing tax cost at all.
    Last edited by jamesd; 24-05-2017 at 7:17 AM.
  • jamesd
    Stepping back from the details a bit, you anticipate 120k in DC pensions, 65k S&S ISA and 45k in cash as the available resources. A total of 230k.

    Even using my fairly cautious after bad debt P2P income level of 10% that's the potential for 23k of tax free income vs a target of 25k.

    My raw interest rates ignoring capital profits from sales is a bit over 12.5% and bad debts are below 1%, more than covered by the trading profits. That 12.5% would be 28,750 a year of income but 12% is more sustainable and 10% better to use for planning.

    Assorted details to get the tax planning right but I see no need for you to have any trouble generating 25k a year with no net loss of capital, at least initially.

    Longer term it's quite possible that the interest rates on secured P2P lending might drop so eventually there might be some gradual capital loss but nothing significant enough to threaten your plan.

    The Ablrate and MoneyThing P2P places are where I have my own largest P2P amounts and are the ones I normally recommend to those new to P2P because neither has yet differed a loan that I would have been unhappy to invest in. More care is needed in loan selection at Collateral and FundingSecure but for diversification across platforms both are worth a look. I typically have more than 100k invested in P2P.
    Last edited by jamesd; 24-05-2017 at 7:38 AM.
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