£250k to invest - Help!

Matthew2018

Linton is absolutely correct.

I would like to add a few points.

Take your time producing your plan until it is right for you. I jumped too soon to get an annuity after having a drawdown pension just before the rules changed You can't anticipate that, but I felt pressurised to jump before I was ready.

However, don't take too long. There may be cut-off dates, that you need to adhere to or loose benefits. Again I lost out on some enhanced benefits, by a few days when made redundant.

In the mean time spread your risk by having your pension pot in several easy access accounts until you are ready to make a longer commitment.

Good Luck.

sovsov1357

Talk to an independent financial advisor who should be able to give you a unique tailored plan with expert advice, they charge reasonable hourly rates...

nkb21

Thanks again everyone, for your responses. Im staggered at the time and effort people have gone to give me some pointers. Im immensely grateful.

Heedtheadvice - Thanks, yes will sort Marriage Allowance transfer next tax year (I!!!8217;m a HR tax payer this year so not eligible yet).

DairyQueen - Sobering thoughts indeed. Very much appreciate your words of warning and certainly gives me lots food for thought.

Kidmugsy - Yes, my entire DC pot made up part of my TFLS (the rest came from the DB). As such, any contribution I am considering making to a SIPP in my name before 5th April this year, will only have come from that tax free lump. Additionally, checked with the Pension Advisory Service today and theyve confirmed that based on my scenario, they also believe my allowance this year, is still £40k (though they also suggested I verify once and for all with HMRC). Am waiting on my pension administrator to confirm what my contributions have been so far this year, to establish what allowance I still have left. Then all I have to worry about is not falling foul of the recycling rules!! Why is nothing simple? Argghhhh!!!!

Matthew2018 - Yes, Im learning that I need to tread carefully whilst still keeping momentum. On one hand, it would be all too easy to go at it hell for leather in an effort to get things set aside and under control, only to find that down the road, Ive make costly mistakes. On the other hand, I could just let lethargy set in, do nothing and equally find out, Ive missed out on maximising benefits. Still, Rome wasnt built in a day!

nkb21

OK, so Ive heard back from the pension administrator regarding PIAs for 14/15, 15/16 and 16/17. Im not convinced they have provided the correct figures but based on what they have said, I do have roughly £20k available to carry forward to this year.

I had also asked them to confirm what the 17/18 PIA was up until the point I was made redundant, left the scheme and therefore ceased making further contributions (both me and my employer). They have said that they cant provide PIAs for this year, as we are still within the tax year!! Does this sound right? If it is, how am I supposed to calculate what I and my previous employer has contributed to the DC scheme I was in between 6th April 2017 and the date I was made redundant and what the increase in value of accrued benefits to the DB scheme in that same period has been, in order to allow me to calculate whats left available to me to contribute to a SIPP, before 5th April 2018?

I have just written back to the pension administrators again asking further clarification and will also call them tomorrow but I have serious doubts about their ability to understand what Im after and so provide what I need, certainly within the next few days.

In the event I have an educated guess about what AA I have left available this year (including the carryover from the 3 prior years) and decide to make a one off contribution to a SIPP before 5th April and it ultimately transpires that I exceed my available allowance, what will happen?

PS - I know this thread is looking increasingly more relevant to the Pensions board now but as it appears most of the knowledge within the MSE Pension community seem equally as active on the Savings/Investment board, I hope it doesnt cause too much inconvenience.

kidmugsy

nkb21 wrote: »

... it ultimately transpires that I exceed my available allowance, what will happen?

You'll be charged tax on the excess bit. There's something called "scheme pays" whereby you can get the pension scheme to pay up rather than do it yourself. I don't know much about it.

xylophone

Wife = 47 y/o non-earner and 21 years from State Pension. Forecast £110 p/w - needs 10 more years to max it.

This is her new state pension forecast?

https://www.royallondon.com/Global/documents/GoodWithYourMoney/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf

nkb21

kidmugsy wrote: »

You'll be charged tax on the excess bit. There's something called "scheme pays" whereby you can get the pension scheme to pay up rather than do it yourself. I don't know much about it.

Thanks for this. Ive managed to locate a document on Scheme Pay on the admin site library Looks a thrilling read! and perhaps more relevant to someone still paying into the scheme but Im sure the general principles will apply against any SIPP I start.

nkb21

Thanks xylophone - looks very useful. I've got some reading to do over Easter:eek: