We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Self employed, personal pension
Comments
-
So the best way would be to pay into a combination of S&S ISA and personal pension.
Pay into a pension up to the point that my pension income + basic state pension = my over 65 tax free allowance.
But also pay into an S&S ISA to give me extra tax free allowance. So I pay no tax when I'm over 65?
That's the basic plan if a basic rate taxpayer with no employer contributions.
Higher rate taxpayer - as long as you pay less tax in retirement than you gained on tax relief, you are winning.0 -
As the cost of advice would be the same regardless of whether it was an ISA or pension, I don't quite get your point.
Agreed, from my experience the actual tax wrapper is pretty much irrelevent these days to how and IFA gets paid.Always looking for a good deal on my savings, generally risk averse, but always interested in new ideas and new ways of doing things.0 -
Up to £2k but could be much less - depends on amounts involved.
An up front fee of this magnitude will, over a 34 year term, wipe out 2/3rds of the 20% tax rebate on contributions. In fact this will have just about the same negative consequence as an extra .5% annual manco fee.
So the contributor is in effect faced with Hobson's choice. Unless of course they choose an alternative, feeless, retirement funding option, that is.0 -
So the contributor is in effect faced with Hobson's choice. Unless of course they choose an alternative, feeless, retirement funding option, that is.
And an example of a feeless retirement funding option is exactly what? Death? :rotfl:Always looking for a good deal on my savings, generally risk averse, but always interested in new ideas and new ways of doing things.0 -
An up front fee of this magnitude
That was the maximum I quoted. I also said it could be much less.over a 34 year term, wipe out 2/3rds of the 20% tax rebate on contributions. In fact this will have just about the same negative consequence as an extra .5% annual manco fee.
Not when it also has the effect of lowering the amc as can happen with a modern multi-charged pension.So the contributor is in effect faced with Hobson's choice. Unless of course they choose an alternative, feeless, retirement funding option, that is.
Such as?0 -
Such as?
The negative effect of a one off upfront fee of 2K is about the same as that of a .5% annual manco fee levied on funds under management over the life of the fund. So they're damned if they do and if they don't.
But it doesn't stop there because where the contributor realises, after a year of two, that they've been sold a pup and need to change their IFA, its bye bye another 2K.
However, what do you think gbgeer43?0 -
The negative effect of a one off upfront fee of 2K is about the same as that of a .5% annual manco fee levied on funds under management over the life of the fund.
I've already answered that so why repeat it.
Instead please answer the question actually put to you with reference to this statement.Unless of course they choose an alternative, feeless, retirement funding option, that is.
Such as?But it doesn't stop there because where the contributor realises, after a year of two, that they've been sold a pup and need to change their IFA, its bye bye another 2K.
Except for when they haven't and don't.0 -
The negative effect of a one off upfront fee of 2K is about the same as that of a .5% annual manco fee levied on funds under management over the life of the fund. So they're damned if they do and if they don't.
Er, how do I put this politely, this is just rubbish!
The percentage effect of the £2k fee depends on the fund size and the term to retirement, so say it equates to an automatic reduction of 0.5% per year for the life of the fund is simply incorrect.
Oh and please do tell us what are the feeless retirement options, I'm dying to know.Always looking for a good deal on my savings, generally risk averse, but always interested in new ideas and new ways of doing things.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247.1K Work, Benefits & Business
- 603.7K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards