It's time to start digging up those Squirrelled Nuts!!!!

Sea_Shell

Just looked at the dates, and it's only 9 tax years "available", as 21/22 has been used.  And DBs kick in during 31/32 tax year.

Audaxer

Sea_Shell said:

Audaxer said:

Sea_Shell said:

The other job on our list over the coming weeks, is to sort out DH's Aviva* pension.

It's not his biggest one, but it's the one we want to start DD on in April.

It's currently worth about £60k, but in an "old style" policy.

AWUI, he'd have to open a new "modern" sipp with Aviva, and then transfer in, before he can start to DD.

Once transferred, the plan is to crystallise the whole thing, and take the 25% TFLS (£15k to ISA), and then set up DD to start in the new tax year.  Funds for the 25/75% to be decided.   Monthly DD amount yet to be decided, too!   Either pay no tax now (£1152 inc MA), more later.  Or pay some tax now, on say £1300pm.

This pot should last about 3 years, before he'd then transfer in his Aegon pension (currently at zero fee), worth £115k.

If taking out £1152 per month tax free, I think it would probably take just over 3 years to take drawdown the remaining £45k without paying any tax, so I'm not sure why that would result in paying more tax later?

Doesn't that depend on growth of the fund(s)?    If it grows, we'd be left with a balance that would eventually be taxable. 

At the end of the day DH has 10 years x personal allowance to get out as much as possible, for the least amount of tax, before his DB pensions kick in (and pretty much use up his PA).

So any DC balances left by then, WILL be subject to Income Tax, if drawn.

Yes, the balance could grow in the next 3 years. I asked the question trying to be helpful as I was thinking maybe you/he could get away without paying any tax on that pension. However you are right in that it depends on the growth on that pension and the other DC pension and whether he can get it all or most of it out in the next 10 years before he has to start paying tax.

sheslookinhot

I’ll be doing the same thing. TFLS from a small SIPP in April 22, followed by 11/12 months of £1100 or so. DB will come into payment April 23.

enthusiasticsaver

It is always a balance and we have  the same discussion every year in that should we withdraw from my SIPP to use up my PA which is almost all being used now due to DB pensions/married allowance or leave it there to grow.  We don't need it so have not drawn it this year. 

Sea_Shell

Well, that's all the spending done for 2021.

Just need to update all the investment figures after close of play Friday.

cfw1994

Sea_Shell said:

Well, that's all the spending done for 2021.

Just need to update all the investment figures after close of play Friday.

Party Hard with that NYE Spreadsheet 🎉🤪

I did wonder about doing a calendar year wrap-up, but will stick with my original plan to close with the fiscal year.....might make for an exciting Easter weekend some years 🤷🏼‍♂️🤣

Cheers all 🍾🥂😎👍

Sea_Shell

Here's our spends for 2021		Annual	Mth Ave.
Bills		4004.71	333.73
Holidays/Ente		2530.83	210.90
Car Expenses (1)		725.64	60.47
Groceries		2439.64	203.30
Household		4621.08	385.09
Health/Beauty		1736.86	144.74
Clothes/Shoes		143.49	11.96
Fuel		450.4	37.53
Gifts/Cards		431.45	35.95
Bank/ISA Fees		481.6	40.13
Phones/Calls		5	0.42
		17570.7

If we take £2800 out of Household, for the new boiler, then than brings it back to £14,770.   

jimi_man

So £18k a year then. £1500 a month. Seems reasonable and not actually that low. Especially bearing in mind that activities have still been slightly restricted over the last year. 

Audaxer

Sea_Shell said:

Here's our spends for 2021		Annual	Mth Ave.
Bills		4004.71	333.73
Holidays/Ente		2530.83	210.90
Car Expenses (1)		725.64	60.47
Groceries		2439.64	203.30
Household		4621.08	385.09
Health/Beauty		1736.86	144.74
Clothes/Shoes		143.49	11.96
Fuel		450.4	37.53
Gifts/Cards		431.45	35.95
Bank/ISA Fees		481.6	40.13
Phones/Calls		5	0.42
		17570.7

If we take £2800 out of Household, for the new boiler, then than brings it back to £14,770.   

Interested to know if the other Household spend of £1,821 (after taking off the boiler cost) includes things like toiletries and other non-food items in a supermarket shop or are these things included under Groceries?

Sea_Shell

Audaxer said:

Sea_Shell said:

Here's our spends for 2021		Annual	Mth Ave.
Bills		4004.71	333.73
Holidays/Ente		2530.83	210.90
Car Expenses (1)		725.64	60.47
Groceries		2439.64	203.30
Household		4621.08	385.09
Health/Beauty		1736.86	144.74
Clothes/Shoes		143.49	11.96
Fuel		450.4	37.53
Gifts/Cards		431.45	35.95
Bank/ISA Fees		481.6	40.13
Phones/Calls		5	0.42
		17570.7

If we take £2800 out of Household, for the new boiler, then than brings it back to £14,770.   

Interested to know if the other Household spend of £1,821 (after taking off the boiler cost) includes things like toiletries and other non-food items in a supermarket shop or are these things included under Groceries?

It also includes £1000 of new recliner chairs!

The rest of "household" is incidental stuff.  DIY, lampshades, gardening, appliances, tools etc etc.

Basically, if we buy it as part of our normal weekly Aldi shop it's Groceries. 

Any Aldi "special buys" would be split out of groceries as appropriate.  (Household, clothes, gifts etc)

But if we say pop to Poundland/B&M  for a branded cleaning product, it'd go under Household.

Standard day to day toiletries (Aldi) are Groceries, but any "posh" smellies go under Health and Beauty.

Hope that helps. 😁