£100,000 in Premium Bonds

Jonbvn

chucknorris wrote: »

He sometimes/often gets me over any inertia to do the things that I should be doing, right now Ozzie is eating (from) his kong on the lawn. But about 20 mins after finishing it I am taking him cycling off road on a nearby common where he can also have a swim. Later on this afternoon/early evening (just before dusk) I will be taking him to another common for a walk and run.

A dog that can cycle:eek: He should be worth millions!:p

chucknorris

Jonbvn wrote: »

A dog that can cycle:eek: He should be worth millions!:p

He is worth millions, I wouldn't sell him for any price.

Aberdeenangarse

MrRee wrote: »

The good lady wife and I will be going full guns in 2015 - in it to win it, £1 million here we come!!

Did you get any for MrPricklepants ?

MFW_ASAP

Before the pension changes, and with National Savings certificates closed to new investors, the priority for a higher rate taxpayer would normally be to contribute the maximum amount to a company pension to get the maximum employer contributions, to then max out a Cash ISA and/or S&S ISA and then to look for other tax free ways to invest money (Venture Capital Trusts, Offset Mortgages, and indeed even premium bonds).

With the changes to pensions and the potential to gaining 40% tax rebate on contributions and paying less than 20% on withdrawal (when taken with the 25% tax free lump sum), one wonders if it's worth putting money anywhere else?

I will always have my emergency savings in ISAs, but once this is maxed out (I'm thinking of building this to £20k) then everything else can go into my pension as this gives me the best bang for my buck.

I am considering going interest only on my mortgage, paying the repayments into my pension (plus 40% rebate) and then withdrawing cash from my pension to pay off my mortgage.

The possibilities are endless, these pension reforms are outstanding.

chucknorris

MFW_ASAP wrote: »

I am considering going interest only on my mortgage, paying the repayments into my pension (plus 40% rebate) and then withdrawing cash from my pension to pay off my mortgage.

The possibilities are endless, these pension reforms are outstanding.

I'm thinking of investing into a SIPP in my wife's name, she is also a 40% taxpayer but doesn't invest much in her pension. This means that I would probably retire in about 4-5 years rather than 10 years.

Yorksport

MrRee wrote: »

Right ....... with it now.

But, if I am the only person who has 100,000 bonds - I stand a better chance of winning than anyone else ......... they are the odds I like in chasing that £1 million (of which there will now be two!).

Well, I'm not a fan of the increase to the holding limit. I can see that it gets money to the government at a low rate of interest but I'd rather see holding premium bonds spread to all in the population as they once did. They have been replaced by lotteries among everyday folk. Introducing a minimum purchase of £100 was wrong - it should be £10 - and far more prizes - nothing more than £100,000. I'd cap the holding at £10,000 too. They have become irrelevant to most people as the prize lists are dominated by those holding large amounts.

MFW_ASAP

chucknorris wrote: »

I'm thinking of investing into a SIPP in my wife's name, she is also a 40% taxpayer but doesn't invest much in her pension. This means that I would probably retire in about 4-5 years rather than 10 years.

That could be a way to recycle the money from the sale of one of your BTLs. Sell up, pay your capital gains 18% or 28% (depending on taxable income) and then feed this into a pension, maxing it out over a number of years gaining a 40% tax rebate.

Withdraw this in stages from age 55 onwards and gain a 25% tax free lump sum and 20% tax treatment on the rest. Drip feed into an ISA.

All your capital gains taxation will be nicely paid back via your tax rebates.

mystic_trev

chucknorris wrote: »

I'm thinking of investing into a SIPP in my wife's name, she is also a 40% taxpayer but doesn't invest much in her pension. This means that I would probably retire in about 4-5 years rather than 10 years.

If you've got the money, and I assume from your previous postings, you have, the sooner the better. I retired at the grand old age of 42, eighteen years ago, and it was the best decision I've ever made. I really couldn't see the point of continuing a job I didn't enjoy, to earn money that I'd probably never spend. As they say 'You're a long time dead'

chucknorris

MFW_ASAP wrote: »

That could be a way to recycle the money from the sale of one of your BTLs. Sell up, pay your capital gains 18% or 28% (depending on taxable income) and then feed this into a pension, maxing it out over a number of years gaining a 40% tax rebate.

Withdraw this in stages from age 55 onwards and gain a 25% tax free lump sum and 20% tax treatment on the rest. Drip feed into an ISA.

All your capital gains taxation will be nicely paid back via your tax rebates.

I have enough in the ftse already (non ISA/SIPP) to use for this purpose. I have only just thought of it, so I might have overlooked something, I therefore welcome any constructive criticism, as I may move fast and take advantage of this tax year's £50k annual pension allowance.

MFW_ASAP

chucknorris wrote: »

I have enough in the ftse already (non ISA/SIPP) to use for this purpose. I have only just thought of it, so I might have overlooked something, I therefore welcome any constructive criticism, as I may move fast and take advantage of this tax year's £50k annual pension allowance.

Good luck to you, whatever you decide. I have to say that a combination of a house price crash reducing the price of our dream house, sustained super low interest rates allowing us to pay for it and now a gilt edged and tax efficient way of paying it all off has meant that the financial crisis and its repercussions have been amazing for my personal finances. It's just wonderful.