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SIPP lump sum or regular invest

245

Comments

  • dannybbb
    dannybbb Posts: 167 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    salary is 1250 pm so no not 50k
  • dannybbb
    dannybbb Posts: 167 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    this is what i was going off
    Pension contributions made directly from your limited company are not restricted to the salary threshold and annual pension allowance limit. Consequently, you can pay more than £60,000 per year into your director pension pot, as long as the total amount does not exceed your company's annual profits.
  • dannybbb said:
    salary is 1250 pm so no not 50k

    In which case you can only contribute £12k (net) and this will have £3k in basic rate tax relief added to make a gross contribution of £15k
  • dannybbb
    dannybbb Posts: 167 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    even if it is from the limited company?
  • dunstonh
    dunstonh Posts: 121,098 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    You may be referring to the "pound cost averaging" effect which does suggest you get slightly better returns by drip feeding money in as you buy more share/units when the price is low.
    Statistically, pound cost averaging results in lower returns in around three quarters of time periods.

    profits are 40,000 last year and there is 150000 in the business of which i could safely take 100k from, would you reccomend an amount to begin with and then feed it in month by month?
     Employer contributions are not limited by salary and you can use carry forward as long as you already hold a pension in the years you intend to carry forward.    However, you dont want to exceed your profit. Although the accountant may be able to carry the loss if you do.




    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • dannybbb
    dannybbb Posts: 167 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    from what i have read it just needs to not exceed company profits rather than salary
  • dannybbb said:
    even if it is from the limited company?

    But your opening post said,
    i have 40k which i intend to put in a global multi asset fund

    Company contributions are different to personal ones.

  • dannybbb
    dannybbb Posts: 167 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    @dunstonh thats what i thought. I cant carry over as its a first year. salary 12k, profits 40 k so as i understand it i can do 40 k this year and the same next?
  • dannybbb
    dannybbb Posts: 167 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    assuming same profits next
  • dannybbb
    dannybbb Posts: 167 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    dannybbb said:
    even if it is from the limited company?

    But your opening post said,
    i have 40k which i intend to put in a global multi asset fund

    Company contributions are different to personal ones.

    sorry for the confusion - i meant that is the kind ov fund within a sipp
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