Investments strategy

Trunks1983

Hello,

If everything goes well, I would like to invest approximately each year:
- Persion: £40k (for 25 years)
- ISA : £20k
- Ltd Surplus Cash : £15k

Where do you recommand me to invest?
- Persion : Growth / Aggressive strategy : SIPP, robo-advisor or IFA for best returns? Which are your favorites plateforms?
- Ltd Surplus Cash : Invest throw the company of Personal Account (32,5% dividends tax)

Thank you for advices

Trunks1983

I have noticed 2 advanced robo-advisors with human advisor services :
- Vanguard Personal Advisor Services
- Charles Schwab Intelligent Advisory

Any review on these?
Another recommandations?

Can I use it for pension and ISA?
How it works? (Never own any pension, ISA nor saving account)

kuratowski

With that much money to invest, I would recommend engaging an IFA (where the "I" is essential) because as an inexperienced investor, the benefits of the expert advice would definitely outweigh the costs of said advice. Using a regulated IFA gives you some confidence that the investments are actually suitable for your situation.

Also, in your first post, you said you expect to invest 40k pa in a pension. But if your income is sufficient to be saving 75k pa then I doubt you actually have 40k annual allowance available (it is tapered for high earners). Nothing to stop you investing more than annual allowance, but you should be clear on the tax implications.

Trunks1983

Thank you kuratowski,

I have met a IFA last week and he seems great, he answered me to a lot a questions I had.
He take 3% for the first deposit and then 0.5% (up to 1%) and (0.2% for saving the platform).
What do you think about it?
Does Vanguard or Schwab advices worth?
IFA made better returns that platform like Vanguard or Schwab?

Also, in your first post, you said you expect to invest 40k pa in a pension. But if your income is sufficient to be saving 75k pa then I doubt you actually have 40k annual allowance available (it is tapered for high earners). Nothing to stop you investing more than annual allowance, but you should be clear on the tax implications.

I have read that I can invest the full annual allowance directly through my limited company as long as my income are higher (around £135k).

bostonerimus

Don't do anything in a hurry, Take 6 months to read and learn about finances and investing.
If you DIY sensibly...and it isn't difficult...you can save yourself loads in advisor fees.
Look at platforms like Vanguard, H&L, BestInvest, Bell, Schwab etc.

1) Do a budget so you can control spending and spend less than you make
2) Pay off all high interest debt...the only debt you should have is your mortgage.
3) Save 6 months to a year in your bank account
4) Invest as much as you can into your workplace pension.
5) Invest in an ISA
6) Use low cost multi-asset funds in both the ISA and the pension.

Trunks1983

Thank you bostonerimus for your reply,

What do you recommand me about learning for finances and investing?

I have no dept, just french mortgage 1.7% fixed for full period (covered by the rentrinfg).
I am tenant in UK.

kuratowski

Trunks1983 wrote: »

IFA made better returns that platform like Vanguard or Schwab?

That's a sort of apples and oranges comparison. The benefit of an IFA is to select investments that are suitable for your risk profile. Selecting a platform is a matter of value for money not risk.

I have read that I can invest the full annual allowance directly through my limited company as long as my income are higher (around £135k).

Your company contributions will be added to your salary to form your adjusted income, which for tax purposes is tested against a £150k threshold - the annual allowance is reduced by £1 for every £2 adjusted income exceeding the threshold, down to a minimum of £10k. So, if you took £135k salary then the maximum your company could contribute to a pension scheme without incurring tax liability would be £31,667, assuming the pension contributions are additional to the salary.

Trunks1983

Your company contributions will be added to your salary to form your adjusted income, which for tax purposes is tested against a £150k threshold - the annual allowance is reduced by £1 for every £2 adjusted income exceeding the threshold, down to a minimum of £10k. So, if you took £135k salary then the maximum your company could contribute to a pension scheme without incurring tax liability would be £31,667, assuming the pension contributions are additional to the salary.

Sorry, I wasn't clear, I was speaking about company income, not personal income.

Company Income: £135,000
Salary: £8,580
Dividends: £41,420

---

Personal Income: £50,000

Due to my company income, I should be able to invest £40k into pension directly through the limited company

Prism

Trunks1983 wrote: »

Sorry, I wasn't clear, I was speaking about company income, not personal income.

Company Income: £135,000
Salary: £8,580
Dividends: £41,420

---

Personal Income: £50,000

Due to my company income, I should be able to invest £40k into pension directly through the limited company

That all looks right. I do have a question though. How do you know your company income before you earn it? Do you not have expenses and costs. A general rule of thumb is to keep 6-12 months of living costs in your company in case of sickness, lack of work etc

Trunks1983

How do you know your company income before you earn it? Do you not have expenses and costs.

Good question !

Is is because I have created my limited company 18 months ago.
I am working full time at client workplace as IT developer for £620/day.
Where I am, many developers are here since 5/10 even 20 years.

I have currently around £50k surplus cash into my company.
For the tax, expenses and costs, I have already deducted it,

Company Income : 216 * 620 = £134k (even if I have worked 230 days last year)
Expenses + costs: £5k
Salary : £8.6k
Pension: £40k
Profit before tax : £80k
Profit after tax (19%): £65k
Dividends : £41.4k
Surplus Cash: £23.6k

Prism

Trunks1983 wrote: »

Good question !

Is is because I have created my limited company 18 months ago.
I am working full time at client workplace as IT developer for £620/day.
Where I am, many developers are here since 5/10 even 20 years.

Have you looked into the IR35 changes coming in soon

I have currently around £50k surplus cash into my company.
For the tax, expenses and costs, I have already deducted it,

Company Income : 216 * 620 = £134k (even if I have worked 230 days last year)
Expenses + costs: £5k
Salary : £8.6k
Pension: £40k
Profit before tax : £80k
Profit after tax (19%): £65k
Dividends : £41.4k
Surplus Cash: £23.6k

numbers all look good to me. There are some business fixed savers for your cash