1688 days.

enthusiasticsaver

andys15 said:

Combined take home is about £12200 per month. I take a grand a month to spend on me. My wife gives me £2500 a month and the rest she sorts out food and is a total spendaholoc with rest. 

Our current standard of living allows us to buy things when we want and I want that into retirement. 

I can understand that. We did not want to  scrimp in retirement but we manage well on £3k a month.  We did not have a £12.2k monthly income prior to retiring though although if you were overpaying your mortgage and now investing £8k a month you only really use £4.2k of your income anyway. 

As I see it you need £60k per annum for 7 years so as you say £420k. I would opt for £1k per month to go into PBs as the start of your cash drawdown fund.  £3.5k approx to go into stocks and shares ISAs (1 each) and the remaining £3.5k to go into unwrapped investments which can be B and Bd after you retire into your ISAS.  Each year drawdown £60k into your cash account to cover your yearly income needs. If your wife does not have a SIPP in addition to her final salary pension then maybe consider diverting some to a SIPP in her name providing that does not take her over the LTA.  That may mean she can delay  taking her final salary pension (assuming she is the same age as you) and suffering the actuarial reduction for taking it early.  

andys15

Thank you. We are going to look into my wife’s pension this week as we have not even counted that in our thoughts. She has only contributed into it since 2006. So will be only 20 years at planned retirement. 

jamesd

Given that take-home it seems worthwhile to investigate VCTs. Those have a 30% of purchase price tax refund from the government, capped at income tax due in the year of purchase. You have to repay the relief if you sell within five years of purchase. They invest in smaller or newer companies, a small company version of investment trusts. Their dividends are tax exempt and they aren't subject to capital gains tax. They usually try to use dividends for most of their investment returns.

Those offer the potential to effectively eliminate your income tax bill by delaying part of your income for five years, then recycling the same five years worth indefinitely to continue that process.

andys15

Thank you. I have not heard of VCTs. I will take a look. 

cfw1994

jamesd said:

Given that take-home it seems worthwhile to investigate VCTs. Those have a 30% of purchase price tax refund from the government, capped at income tax due in the year of purchase. You have to repay the relief if you sell within five years of purchase. They invest in smaller or newer companies, a small company version of investment trusts. Their dividends are tax exempt and they aren't subject to capital gains tax. They usually try to use dividends for most of their investment returns.

Those offer the potential to effectively eliminate your income tax bill by delaying part of your income for five years, then recycling the same five years worth indefinitely to continue that process.

I should probably peruse your other posts….but how does one find a ‘good’ VCT to invest in? 

(not looking for ‘advice’, just ‘guidance’ 😉)

I imagine there are differences!
Thanks, this is definitely an area to be investigated more for me too 👍

jamesd

Have a read of the VCT discussion board over at the fool site.

cfw1994

jamesd said:

Have a read of the VCT discussion board over at the fool site.

That looks like a lot of research, most threads look like a specific VCT 🤪

andys15

So 100 days since the post. I have filled my ISA with individual FTSE 100 shares and started my wife’s ISA. I will fill her ISA and then should fill both ISAs again by Aug/Sep. 

I will be mainly buying vanguard funds now except for a couple of tech shares. 

The question is what is the best thing to do once the ISAs are filled in September. 

I have opened a NSI account and considering putting into there and part fill them until I can load up on ISAs in April 2023. 

Any other suggestions?  

HCIMbtw

I absolutely love this thread, my favourite part was your initial logic for investments, you'd be right at home on WSB, literally can't go tits up! 

You're maxing out ISA, no brainer. You could max out NS&I, because simple tax free low risk place to hold some funds.. that actually can't go tits up (except you will lose money relative to inflation).  

Then probably just best to look at having an investment account, you only need to pay taxes on gains, and they only become gains once you sell.. and if you lose on some assets you should be able to realise these losses to offset other gains.. could be a nice way to build in using savings as income..  

If I had 8k a month I'd do exactly what I do now, max pension, max ISA, invest the rest with a 10% allocation in a few of the more reputable crypto assets. 

You should probably have somebody managing your money for you from the sound of it, setting up some trusts and stuff, but heck that cavalier attitude hasn't let you down yet and your doing better than 99% of the world, so keep doing what you do lol

andys15

Cheers. 

I cannot put any into the pension as I want to go at 50, so need 7 years money that I can access at 50. 

I am cavalier in some respects. I couldn’t sleep last night so was looking at meta, then that lead to 5g companies which lead to me buying shares today in an American company called Marvell. That’s the gambling side of me that I also used these forums for about 10 years or so ago.