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If you are wearing my shoes. (Redux)
Comments
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Thumbs_Up said:Can some one answer this please.I won't rule out work - Infact i did some Christmas causal work earning £2,900 gross.I am living the life of Riley at the moment no real outgoing cost, but ofcourse this can change. Home to buy cost? Below £280,000 - maybe.Question - I have already contributed £2,800 in this tax year to my vanguard sipp lifestrategy 60. If i am correct with the gross earnings above can i contribute another £2,825 and the tax man will add £725?1
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I haven’t mentioned this but I was paying 42% salary towards my works pension so give me credit here.
Reading your threads, it seems to me that you have done a remarkably good job in order to get yourself into the financial position which you are in.
In the words of Eckhart Tolle (a writer on spirituality, not investing!), a "mistake" is only a mistake if you don't learn from it.
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Thumbs_Up said:atush said:If you are unemployed, why are you not claiming Job seekers allowance, and looking for work?
Are you paying rent to the relative you live with?
6 weeks is all you can claim when you have £500k in assets. Currently not looking for work, but if i relocate somewhere else in the country i won't rule it out. Open to be character assassinated here but no real outgoing cost.
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Thumbs_Up said:QrizB said:No, I did not overlook the state pension, although I was somewhat pessimistic with £24k/15k. It's £26k/£20k.You have £500k of assets plus pensions and are 55 years old.
- 55 to 60 - 5 years @ £26k from assets - £130k
- 60 to 67 - 7 years @ £23k from assets - £161k plus (£3k pension pa)
So at 67 you'll have spent £291k from your £500k and have £209k left, plus £98k from your DC pension. That's £307k. Safe drawdown rates are much discussed but if we go with 4%, £307k will yield £12k pa. Plus state & £3k pensions makes £25k pa for the rest of your life.If you spend £200k on a home, you're only starting with £300k.- 55 to 60 - 5 years @ £20k from assets - £100k
- 60 to 67 - 7 years @ £17k from assets - £119k plus (£3k pension pa)
At 67 you'll have spent £219k and have £81k left, plus £98k DC - total £179k. 4% drawdown will yield £7k, Plus state & £3k pensions makes £20k pa for the rest of your life.My model isn't very complicated but you can see how I got those numbers.
Thank you . But if i was to say i can live off £12,500 a year what inpact would this have on the calculations you have put up.If you have a specific income in mind, you can adjust the nujmbers to suit.Or try cfiresim for yourself; it's a more sophisticated model and will let you see the historic effects of holding cash vs. a tracker fund.Edit: this is a cfiresim simulation that's close to your proposal, if you want somewhere to start. It's in dollars but read them as pounds; it also uses US historic data for market growth and inflation, which isn't quite the same as UK data.N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Ripple Kirk Hill Coop member.Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs, Best kettle!
2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 34 MWh generated, long-term average 2.6 Os.1 -
eskbanker said:Thumbs_Up said:Can some one answer this please.I won't rule out work - Infact i did some Christmas causal work earning £2,900 gross.I am living the life of Riley at the moment no real outgoing cost, but ofcourse this can change. Home to buy cost? Below £280,000 - maybe.Question - I have already contributed £2,800 in this tax year to my vanguard sipp lifestrategy 60. If i am correct with the gross earnings above can i contribute another £2,825 and the tax man will add £725?
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Thumbs_Up said:eskbanker said:Thumbs_Up said:Can some one answer this please.I won't rule out work - Infact i did some Christmas causal work earning £2,900 gross.I am living the life of Riley at the moment no real outgoing cost, but ofcourse this can change. Home to buy cost? Below £280,000 - maybe.Question - I have already contributed £2,800 in this tax year to my vanguard sipp lifestrategy 60. If i am correct with the gross earnings above can i contribute another £2,825 and the tax man will add £725?2
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Thumbs_Up said:Ok, so i won't get any more tax relief this tax year. Can i tell Vanguard that i want to put in say £20,000 towards my sipp but advised them i do not want tax relief added ? Is there a mechanism in place if you were to log in add money to the sipp and check a box not to add tax relief? A while back I did message vanguard but a got a vague reply, perhaps I did not phrase the question correctly. Thanks.Given that you've already paid tax on the £20k, won't get tax relief on the way in but will have to pay tax on the way out, a SIPP is not an obvious place to invest it.Do you have ISA allowance available? You could put it there but invested in the same funds your SIPP uses. Otherwise, open a GIA with Vanguard and you put it there (again, in the same funds as your SIPP) ready to move into a SSISA next year.
N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Ripple Kirk Hill Coop member.Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs, Best kettle!
2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 34 MWh generated, long-term average 2.6 Os.1 -
Sadly £20k in a cash ISA. I had to google GIA.
I couldn’t see any advantage until the Penney dropped. Make your money work today instead of waiting until the new financial tax year.
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You could always invest it outside an ISA for the next 3 months and move it into an ISA in April at the start of the next tax year. The Capital Gains Tax allowance for 2021/22 is £12,300, https://www.gov.uk/capital-gains-tax/allowancesIt's just my opinion and not advice.0
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