10 year plan, suggestions

Jonbvn

This article in the Torygraph earlier this year is very relevant.

A couple made £1.3 million in 20 years using their S&S PEP's & ISA's. Shows what can be done with judicious stock selection and a long term view.

Rafter

Obvious way to avoid tax..... for now is to put it into a pension plan, although that might mean locking it away for more than 10 years.

I'd be wary about all these offshore bond suggestions etc. Given the reach of the tax man, you could find yourself with a nasty penalty if you are not declaring income offshore when it comes to repatriating it at some point in the future.

Given you can be fairly long term, I'd suggest some share based investments too as the returns are likely to be much more than simply cash savings.

Personally I'd max out your stocks and shares isas, paying in a fixed amount each month. Max out on any other tax free savings you can get from National Savings. Get a personal pension sorted with a reputable advisor. See how much of your potential savings is left and look at how you can get the best after tax return on that without taking unnecessary risk.

When your portfolio of investments starts building up, it is worth someone taking a look at it to make sure you aren't overly exposed to one economy (eg the UK) or one sector (eg property or oil).

R.

dunstonh

I'd be wary about all these offshore bond suggestions etc. Given the reach of the tax man, you could find yourself with a nasty penalty if you are not declaring income offshore when it comes to repatriating it at some point in the future.

You dont need to declare it until you have a chargeable event. It isnt the same as having an offshore savings account.

The investment funds available within the bond are the very same ones available on pensions and ISAs plus more. Its just another tax wrapper which will suit some and not others.

djbd1973

Dithering_Dad wrote: »

Whatever method you use to make your half million (or become a "Dollar Millionaire", which I think sounds much cooler), please make sure to post regular updates into this thread. Once I've finished my Mortgage Free in Three (Yrs) campaign, I'll be keen to move onto the next one and "Dollar Millionaire in Months (120)" sounds like a catchy title...

Sounds very catchy indeed. Definitely a predicament to relish. There could also be TV rights in this for you, and with rights comes money!!

wkt54

If you have money in an offshore account, and earn interest of more than £5,525 - do you have to pay tax on the excess exactly the same as in a UK bank or building society, or is the threshold different?

Cook_County

:beer:

wkt54 wrote: »

If you have money in an offshore account, and earn interest of more than £5,525 - do you have to pay tax on the excess exactly the same as in a UK bank or building society, or is the threshold different?

The UK tax is identical unless you are not domiciled within the UK and do remit the income to the UK.

wkt54

Thanks

So if you have money in an offshore account, are a UK resident, and you receive interest - the tax free allowance is £5525 - anything above that you would have to pay tax on.

Cook_County

wkt54 wrote: »

Thanks

So if you have money in an offshore account, are a UK resident, and you receive interest - the tax free allowance is £5525 - anything above that you would have to pay tax on.

Yes income one receives is covered by a UK personal allowance for those entitled to that allowance. What has this got to do with the question?

wkt54

The question I originally asked was - if someone has money in an offshore account - is the tax free allowance, before you have to pay tax on interest - £5,525, the same as if you just had the money in a building society.

I thought perhaps an offshore account had a different threshold to a UK bank or building society.

That was what I was trying to find out.

pantsmachine

I have few frozen pensions and 1 active one so old age(65 on assuimg the tabs and booze don't nail me first) is being taken care of. This plan is for my midlife run away to the sun(with my wife)joint midlife crisis! My wife has been looking after the kids but has decided to go back to work part time so my tax break through her is now on its way out. The first step will be an isa as i have not needed one before(all in my wifes name or spent on house). A real noob question but here we go. A maxi isa lets me put in 7G per year, 3G cash 4G shares? If i decide to go with the isa mentioned in the times article does this mean that the isa manger is buying and selling shares in the isa owners name up to 4G or do i choose the shares myself. My point is does the share portion of a maxi isa behave like a normal investment fund with the fund manager having control over shares bought and sold?