Capital preservation options SIPP

Albermarle

Deleted_User said:

Albermarle said:

Also if you are still employed and receiving employer contributions and you are a 40% taxpayer , then it is still worthwhile adding to your pension , even with LTA tax.

Is that right? As opposed to putting after tax money into ISA? Would have thought using up ISA room would be more advantageous. Even taxable accounts could be competitive if you are subject to two sets of taxes on withdrawal. But I have not done the maths.

Lets say you contributed £1000 to a pension . For a higher rate taxpayer in UK this costs them £600 .
If you are over the LTA , there will be a 25% charge for taking income so £750 left . If they are a basic rate taxpayer in retirement this will mean minus 20% = £600 , so back where you started.
If the employer also makes a contribution then overall you still gain . Plus all investment growth , dividends etc remain tax sheltered.
If you were lucky enough to pay 40% tax in retirement then it doesn't work. 

[Deleted User]

cfw1994 said:

Deleted_User said:

Interesting little interview with Munger.
https://youtu.be/IY0flE2NZh4
1. We are in uncharted waters.
2. Expansion of money supply has been astounding.
3. We are playing with fire. Nobody has done that without having to pay a penalty.
4. Some of the bonds issued in Europe make no sense.
5. Returns will be lower. 

Interesting?  Really?
That has to be the least interesting and certainly the least useful I’ve watched in sometime.
Pretty certain we learned nothing but short warnings with zero detail.
I suspect most faintly knowledgable people here expect a low inflation and lower returns market for the next few years.  

Shame he couldn’t say when the bubbles would burst, but then doom-mongers rarely offer timeframes....

First comments say it all: “Charlie is getting smaller and The chair gettting bigger. Thats inflation allright!”, & that the interviewer failed to prepare or follow up at all on the fella’s vague warnings of fire, pestilence and flood ahead.

That European banks have borrowed sums over 100 years at a fraction of 1% explains how far down the road the fiscal can is being kicked.  The world will be a very different place by then, & neither you, me or Charlie will be around to care.

Munger is not a “doom-monger”.  Doom mongers have been predicting doom for decades, I see them all the time.  The reason he is a billionaire is because he has been right about investing over his long career and knows a thing or two about money. 

cfw1994

Deleted_User said:

cfw1994 said:

Deleted_User said:

Interesting little interview with Munger.
https://youtu.be/IY0flE2NZh4
1. We are in uncharted waters.
2. Expansion of money supply has been astounding.
3. We are playing with fire. Nobody has done that without having to pay a penalty.
4. Some of the bonds issued in Europe make no sense.
5. Returns will be lower. 

Interesting?  Really?
That has to be the least interesting and certainly the least useful I’ve watched in sometime.
Pretty certain we learned nothing but short warnings with zero detail.
I suspect most faintly knowledgable people here expect a low inflation and lower returns market for the next few years.  

Shame he couldn’t say when the bubbles would burst, but then doom-mongers rarely offer timeframes....

First comments say it all: “Charlie is getting smaller and The chair gettting bigger. Thats inflation allright!”, & that the interviewer failed to prepare or follow up at all on the fella’s vague warnings of fire, pestilence and flood ahead.

That European banks have borrowed sums over 100 years at a fraction of 1% explains how far down the road the fiscal can is being kicked.  The world will be a very different place by then, & neither you, me or Charlie will be around to care.

Munger is not a “doom-monger”.  Doom mongers have been predicting doom for decades, I see them all the time.  The reason he is a billionaire is because he has been right about investing over his long career and knows a thing or two about money. 

Fair enough - I have never run across him before....but seriously, I don't think he exposed anything particularly interesting or unexpected: those bullets are stating the obvious, and in a fluffy way!

The pace of change is phenomenal right now.   Having spent my career in tech, I see it happening....I don't see innovation slowing down at all, & whilst I have felt times where things are frothy & bubbly, I can guess when it will happen as well as Munger....he'd be more impressive if he called it *and* was right.....
eta - just read this - 90% of the World's Data was created in the past 2 years!

Here: one for free from me: I can envisage the need for UBI (universal basic income) in the developed world far sooner than many might think.   I'm no luddite (although do live 3 miles from Ned Ludd Close of that fame!), & robotics clearly creates some jobs....but will, I believe, remove far more over the next 20 years.   Welcome to Jonnycabs!   That might shake things up....