Where would you put 150k in investments now?

Bostonerimus1

eskbanker said:

Nevbear said:

It’s part of my pension lump sum as I have just retired. I’m currently higher rate tax payer.

Do you still have the option of reconsidering whether taking the lump sum is the most sensible choice, rather than leaving the money in there and drawing down more annually instead?  Having said that, if you'll still be a higher rate taxpayer even just from (reduced) pension income then the tax-free lump sum may be more attractive....

I agree, far too many people take the 25% tax free lump sum when a better choice would be to leave it in the pension to grow tax free.

GazzaBloom

Bostonerimus1 said:

Peskbanker said:

Nevbear said:

It’s part of my pension lump sum as I have just retired. I’m currently higher rate tax payer.

Do you still have the option of reconsidering whether taking the lump sum is the most sensible choice, rather than leaving the money in there and drawing down more annually instead?  Having said that, if you'll still be a higher rate taxpayer even just from (reduced) pension income then the tax-free lump sum may be more attractive....

I agree, far too many people take the 25% tax free lump sum when a better choice would be to leave it in the pension to grow tax free.

Another choice is to stretch it out strategically over the first years of drawdown to help avoid paying income tax on your drawdown needs over and above your personal tax allowance.

Bostonerimus1

GazzaBloom said:

Bostonerimus1 said:

Peskbanker said:

Nevbear said:

It’s part of my pension lump sum as I have just retired. I’m currently higher rate tax payer.

Do you still have the option of reconsidering whether taking the lump sum is the most sensible choice, rather than leaving the money in there and drawing down more annually instead?  Having said that, if you'll still be a higher rate taxpayer even just from (reduced) pension income then the tax-free lump sum may be more attractive....

I agree, far too many people take the 25% tax free lump sum when a better choice would be to leave it in the pension to grow tax free.

Another choice is to stretch it out strategically over the first years of drawdown to help avoid paying income tax on your drawdown needs over and above your personal tax allowance.

Yes, let it grow tax free and use the withdrawals over the years to manage your tax bill.

solidpro

eskbanker said:

AAZ said:

All excellent comment here
For global tracker I use VWRL
Vanguard Lifetsrategy 100 is also a good option

'Good' by what benchmark and for achieving what objective?  The non-100 VLS range have their plus points but the 100 is usually seen as the least appealing, especially when compared with cap-weighted trackers, some at lower cost....

This benchmark:

VLS 100 Past Performance

30 Jun 2019 - 30 Jun 2020 +0.85%

30 Jun 2020 - 30 Jun 2021 +23.84%

30 Jun 2021 - 30 Jun 2022 -3.26%

30 Jun 2022 - 30 Jun 2023 +10.79%

30 Jun 2023 - 30 Jun 2024 +18.17%

Approx 10% P/A. Not bad. Of course, past performance is not a reliable indicator of future results.

People over the last two weeks have been wetting their k-k's about an unwrapped 10% saving account whereby they could make a maximum of £163 after 1 year of trickle charging their balance (as long as it doesn't push them above £1000 annual interest), so why wouldn't someone be happy with 10% on £20k annual allowance or whatever is sitting in their SIPP?

InvesterJones

solidpro said:

eskbanker said:

AAZ said:

All excellent comment here
For global tracker I use VWRL
Vanguard Lifetsrategy 100 is also a good option

'Good' by what benchmark and for achieving what objective?  The non-100 VLS range have their plus points but the 100 is usually seen as the least appealing, especially when compared with cap-weighted trackers, some at lower cost....

This benchmark:

VLS 100 Past Performance

30 Jun 2019 - 30 Jun 2020 +0.85%

30 Jun 2020 - 30 Jun 2021 +23.84%

30 Jun 2021 - 30 Jun 2022 -3.26%

30 Jun 2022 - 30 Jun 2023 +10.79%

30 Jun 2023 - 30 Jun 2024 +18.17%

Approx 10% P/A. Not bad. Of course, past performance is not a reliable indicator of future results.

People over the last two weeks have been wetting their k-k's about an unwrapped 10% saving account whereby they could make a maximum of £163 after 1 year of trickle charging their balance (as long as it doesn't push them above £1000 annual interest), so why wouldn't someone be happy with 10% on £20k annual allowance or whatever is sitting in their SIPP?

Isn't that towards the bottom of the table in terms of global 100% equities performance?

solidpro

Eskbanker asked what possible benchmark did AAZ have for saying VLS100 was a 'good' option. My benchmark here is 10% and it's based on counting. I really don't know why you're talking about some unknown, un-sourced 'table'.

eskbanker

solidpro said:

Eskbanker asked what possible benchmark did AAZ have for saying VLS100 was a 'good' option. My benchmark here is 10% and it's based on counting. I really don't know why you're talking about some unknown, un-sourced 'table'.

The term 'benchmark' in the context of investments (and largely elsewhere too) means comparable products, i.e. a basis for a quantifiable and meaningful evaluation, rather than some arbitrary percentage figure.

solidpro

As arbitrary as counting... As arbitary as actually seeing that fact in my account to live, touch and spend on chocolate.

I thought 10% return was usually 'too good to be true'. or 'possible scam'? 

Is all counting just 'arbitary counting'?

booneruk

solidpro said:

I thought 10% return was usually 'too good to be true'. or 'possible scam'? 

Anything proposing a 10% return risk free is generally going to be a scam

solidpro

booneruk said:

solidpro said:

I thought 10% return was usually 'too good to be true'. or 'possible scam'? 

Anything proposing a 10% return risk free is generally going to be a scam

You're right. The past 5 years of VLS100 is 'going to be a scam'.

Along with https://uk.virginmoney.com/savings/products/regular_saver_exclusive_issue_1/ - 'going to be a scam'.

Oh hang on. Caveat time. I didn't realise we had to only benchmark 100% equity products against other 100% equity products which were 'risk free'. Let's see what you've got.