Changing digs and coming out of my cave... for a wee while atleast :)

elantan

Karmacat wrote: »

Hi El! Its huge, isn't it, and when you're learning it in adult life, there's so much to take on board. Plus the rules keep changing we'll get there tho, I'm sure. And when I feel a bit more settled with current income, I'm definitely going to look at dark tax.

The frustration of the ever changing goal posts is rather annoying tbh, maybe we can share dark tax plans when were ready ? I imagine there will be plenty of people interested in it, and probably plenty of people already doing it some of whom won't be aware they are

elantan

edinburgher wrote: »

This might sound silly, but it is actually really exciting to know/of another INFJ :j

I'm sorry to hear that Mr El is having a tough time, I really hope he enters a sunny patch soon. I've really struggled with depression over the last few years (exacerbated by the wonders of being an INFJ). It's a funny old thing having a wonderful clarity about how the world might work, but lacking the confidence and influencing skills of an Exxx with which to make it happen



Is it not shooting yourself in the foot to accept paying more on funds until they are growing quickly? Surely the effect of the extra 0.2%/year will hamper this? How many funds do you have with HL? Have you looked at the costs of transferring out (and if it's £/fund, could you do an internal transfer with HL into Vanguard LS and *then* transfer?)

Also, I think IFAs are great for cash rich/time poor individuals (I'm related to one), but I can't see the value they can add to smaller pensions (vs their costs). Also, from the interactions I've had with IFAs, they all advocate active management and I'm not convinced by that.



For what it's worth, I think the LS funds are a very well structured product, with good asset allocation, global spread and very low costs. Considering that UK equities have returned c. 5% after inflation historically, costs are very important. LS costs have actually gone *down* since inception - how many funds have done that?

As for the 80% flavour, the questions to consider are probably does it match your risk tolerance and timeline? 80% is a big slug of equities. I'm looking to retire at 55 (a boy can dream), giving me 24 years (and 5 days) before I need my pension. I'd happily invest in 80% equities, as my investing timeframe is 20+ years.

If I was retiring in 10 years, I'd probably not be quite so ambitious re. growth and would 'lifestyle' two LS funds to reach a more conservative amount of equities (for example, 50% in LS60 and 50% in LS80 = 'LS70').

Assuming you're paying a platform charge (i.e. x% as opposed to x£), lifestyling like this won't cost you any more in fees.

On 'tax dark', I think it's in all our interests to try and reduce interactions with the tax man. Everyone on MFW is accidentally doing this (as OPs effectively save you your gross mortgage rate, whereas you might be taxed if you kept the cash). Beyond that, pensions and ISAs are all good. I am looking forward to the new tax year with glee, will soon be time to plough my MB profits into an ISA.

This one will take me a wee while to reply to and no doubt I will forget some things

INFJ now as far as I am aware we are the smallest group so it is hard to meet like minded people, which I why when I saw you were one I got all excited as well we do however keep good company, have you ever looked up famous INFJ's ?

Ok pension again ... Can I transfer my pension from H&L without having to cash it in? I am under the impression that if I move from H&L to CSD then I have to turn my funds to cash then move them over then take out the funds again? I didn't want to move the funds as you ( rightly) pointed out the 80% is for the long term, certainly not a year or two, and I may at a later date have to move from CSD if I have to every time cash in so that I can transfer I am going to struggle to keep a fund for 20 years

Or am I talking rubbish and have misunderstood something ?

I originally took out the. 80% as it was the £2 a month charge so it was better to have just one bill every month instead of two, now that it has moved to a % charge it does make more sense to have a few funds so I probably will have an 80% and a 60% so I will bear that in mind when I open the new one, tried to do it on the phone last night but was very frustrated so have up, will wait till the weekend when I get a minute and get it done

elantan

See I have more to answer to that one, I have slowly been converting my other funds into the VLS80 and have only got my VLS and one other fund left in the SIPP now, the other fund is in profit, it the VLS that's currently not ( it's to be expected tbh)

Our current plans are retiring at normal age, but we do intend to retire early, I think though it would be more wise to get the money at retirement sorted first.


Ah MB I remember the days fondly, made a fortune with that loved it very much ( probably suits our INFJ brains ) I am fascinated with the idea of day trading, I think when I get time I fancy learning it over a longer period trying it out and using it ( maybe in 5 years or so time) to boost our income

elantan

beanielou wrote: »

Sorry Mr El is not feeling his usual cheery self.
Cant comment on rest as am lost :eek:

Thanks beanie he was slightly better tonight as we spent a few hours cleaning, not my idea of fun but if it helps him feel more in control and achieving something then I am happy

It's honestly not that complicated ... But like everything that is new it can be confusing until you understand it ... I you fancy learning please feel free to ask, can't say I know everything cause I really don't, but maybe by helping others I will learn more as well

elantan

Habibiboo wrote: »

:wave:

Ditto twice over there, glad it's not just me Beanie!

Elantan I can't believe you had a visit from the TV bods - we've not had one in out TV free 8 years ... or maybe we were just out when they called!

Fingers crossed floors are finished soon!

Yep they visited last week eeekkk ... We have nothing to hide but I will be honest I do feel slightly hounded ... Same with beanie if I can help you understand it in anyway let me know

It's kinda trying to play the tax man at his own game

The floor didn't go according to plan today but it wasn't a disaster, Mr El went to pick up the drum sander today but they were all hired out so he has booked one for tomorrow so we will get it done then

elantan

Phew hope I got everything

Right mortgage for a wee change lol

Did a quick calculation last night and discovered that if I paid £80 I would be down another £1,000 band, so today I skint us and paid £100 to the mortgage, so we are now down another £1,000 band

We still have a long long way to go but we are getting there it feels good to be getting there, when I told Mr El he was happy as I know he worries about us losing our home, so every time we come down that grand he feels that little bit more secure

Karmacat

elantan wrote: »

Did a quick calculation last night and discovered that if I paid £80 I would be down another £1,000 band, so today I skint us and paid £100 to the mortgage, so we are now down another £1,000 band

We still have a long long way to go but we are getting there it feels good to be getting there, when I told Mr El he was happy as I know he worries about us losing our home, so every time we come down that grand he feels that little bit more secure

Now there's a bit of great news to end the posts on :j:j:j

And its a "yes" to sharing dark tax plans

edinburgher

El, I thought (but was too lazy to check) that you would get an in specie transfer assuming both providers offered the LS80 (which they do).

What I did check (50/50 for laziness), was the cost of transferring out. For now, it's £75 to transfer a HL SIPP to another UK scheme.

It's fairly easy to work out whether or not the cost of transferring out is reasonable to you. You just need a spreadsheet showing years, expected SIPP value for each year, charge for each SIPP (HL and CSD) and difference between the sum of charges.

I looked at a £1,000 SIPP growing by £1,000 each year. It broke even after c. 8 years.

So you're totally right re. 'is it worth moving about?', this topic has also been covered on Monevator a few times.

elantan

Oooo I am interested Kc ... Did some hatching through the night about it... I'm going to try for 100% dark tax of my wage this month and see how much dark NI conts I can go as well ... Then slowly work my way through Mr El's wage ... Probably by 1% a month or so

I was getting carried away with my pen and paper lol

elantan

edinburgher wrote: »

El, I thought (but was too lazy to check) that you would get an in specie transfer assuming both providers offered the LS80 (which they do).

What I did check (50/50 for laziness), was the cost of transferring out. For now, it's £75 to transfer a HL SIPP to another UK scheme.

It's fairly easy to work out whether or not the cost of transferring out is reasonable to you. You just need a spreadsheet showing years, expected SIPP value for each year, charge for each SIPP (HL and CSD) and difference between the sum of charges.

I looked at a £1,000 SIPP growing by £1,000 each year. It broke even after c. 8 years.

So you're totally right re. 'is it worth moving about?', this topic has also been covered on Monevator a few times.

I am so useless at spread sheets tbh so I would have to use pen and paper to work it out ... Will however have pen an paper ready tonight and get started thanks for the push