Some advice for our escape plan?

docscooter

Thank you

We are both higher rate tax payers

dunstonh

In which case the HYP would be hit for 40%, in total. You would be better investing for growth or accumulation units in income funds with a fixed regular withdrawal to compensate. That would reduce the tax liability down and with the right tax wrappers could limit tax significantly.

docscooter

I had a look at the thread started by "Shiredeon". He has a very similar situation to me, the only difference is that I have longer to plan what we do!

During our working period where the monet only needs to accumulate we could be working anywhere in the world. So expect to leave the money in the Uk invested for best possible growth.
When we finish (around 50) it is likely that we would end up living in Greece so the investment/tax issues are along a similar theme but relate to different local rules.
looks to me like this would be much easier if the UK joined the Euro?

cheerfulcat

When we finish (around 50) it is likely that we would end up living in Greece so the investment/tax issues are along a similar theme but relate to different local rules.
looks to me like this would be much easier if the UK joined the Euro?

Joining the Eurozone wouldn't make any difference. Harmonising the tax systems would but that would be even more expensive than it is now for us in the UK.

docscooter

I was thinking from the point of view of currency risks?

cheerfulcat

Currency risk is only an issue if you end up holding shares or other investments which pay dividends in pounds sterling while having liabilities in another currency.

It would make sense to build up your funds in the UK in sterling but to switch them to the currency of your intended country of retirement closer to the time, in shares/funds based in that country or at least, compatible with their tax laws. As things stand right now it would be madness to be based in Greece and have your income both dependent on the UK economy and paid in sterling.

docscooter

Ok thank you that's helpful
So I now have three seperate parts to our plan to research

Best growth potential in UK in next 6 years
Best growth potential over 8 years when based in various locations abroad (working)
Best income potential when living in Greece.

Lots to do but the picture is becoming clearer!

cheerfulcat

Lots to do but the picture is becoming clearer!

You could simplify things a bit by concentrating on each section when the time comes. This would make more sense anyway, given how markets shift; a strategy which will work now may not work in six years' time. So you could work on research for the first leg, the six years' return, now and cross the next bridge when you come to it. IYSWIM. Bear in mind too that legs 2 and 3 are likely to be times of less active investment, 2 because you will be travelling and 3 because once you have established your source(s) of income you probably won't need to change much.