Ongoing or one-off IFA tax advice going into retirement

Pat38493

Pipthecat said:

you can take £16,760 without incurring any tax liability.

£4,190 TFLS + £12,570 taxable income.

And that leaves you with the full savings starter rate band for your high interest cash savings.

Does the starter saving rate stack with the other allowances?  

• Starter saving rate £5,000
• Personal Savings allowance £1,000
• Dividend Allowance £1,000

So based on this year's allowances could you engineer £23,760 tax free if you have the investments to deliver the dividends and interest? 

If I understand correctly the gov.uk savings page, the first two of those do not stack so no.

Not sure about the dividend allowance - I think that is separate so yes?

Also keep in mind tha tthe starter savings rate gets quickly taken away if you earn more than your personal allowance - anything above £17500 wipes it out completely.

OldMusicGuy

If you can manage your own asset allocation I am sure you can manage the fairly simple calculations involved in deciding how to draw on your various assets and the tax impact. Unless you have complex tax shelters, it's pretty simple modelling of UFPLS vs partial vs full crystallization alongside your other income streams. 

I have the same types of assets as you and it was easy for me to work out the best approach. It really isn't that complicated IMO if you have some spreadsheet skills.

And here's a warning for you. I recently used a chartered financial planner and they were appalling. This was in connection with arranging an immediate care needs annuity for a close relative. The adviser used a chartered financial planner to come up with a cash flow impact assessment of various options for my relative. Everything, I mean everything, in their spreadsheet model was incorrect. They had not modelled the different cash flow streams correctly, the way they modelled inflation was incorrect and I spent 30 minutes coming up with a more accurate model than them. At the end of the day their errors didn't have a major impact on the annuity decision we made, but I could not believe how many errors there were in a model from someone with financial planning qualifications.

So based on my experience, if you can do it yourself, you should!