Investment income projection

EdInvestor

Ocean Blue. I'm surprised at you.

Surely you know SIPP stands for "Self Invested Personal Pension"?

The solution to this problem is to stay away from (taxable) pensions in all their guises and go for (taxfree) ISAs instead

dunstonh

A pension is an investment. Its just another tax wrapper to consider. I have used pensions a number of times not for retirement planning but purely for investment portfolio purposes.

I seem to recall that the UK has something like 11 tax wrappers for investments compared to 1 in Australia. Its no wonder things are tricky.

oceanblue_3

"Ocean Blue. I'm surprised at you.

Surely you know SIPP stands for "Self Invested Personal Pension"?

The solution to this problem is to stay away from (taxable) pensions in all their guises and go for (taxfree) ISAs instead"

Sorry, Ed - it was a leap too far; I forgot, you don't do irony, do you? Nevertheless, I have been amused by your performance as MJSW's bumbling acolyte! Go girl!

EdInvestor

Quite interesting to run across someone who really knows his stuff on the tax front, which I usually avoid like the plague.

For instance:

You need to get away from normal thinking in term of income and capital taxwise, investment bonds have a competely different set of rules...

Are these bonds investments at all in the normal sense?

Somehow I doubt it.

MJSW

oceanblue wrote:

"And yet again, I note that you have still failed to explain why you consider telling a client the effective rate on dividends is 33%" .............and, yet again, I note that you have failed to tell me where I said this.

Yet again? As that is the first time you've asked me to tell you this then I wasn't aware you wanted me to! Am I supposed to be psychic? But if you do, then here goes:

To explain the purpose of the equivalent rate you said this: "to clients; their chief concern, however, is to receive accurate information regarding its effect on their income - describing it in terms of an "equivalent rate' is both easily understood and, of equal importance, endorsed by The Chartered Insurance Institute."

and then here you said the equivalent rate was 33%: "If you check my posts, you'll see that I referred to it as an "equivalent" rate of 33%"

Are you now trying to say that you don't think the equivalent rate on dividend income is 33%, as you seem to be denying it? And if so, what is the equivalent rate on dividends in your opinion?

MJSW

EdInvestor wrote:

Are these bonds investments at all in the normal sense?Somehow I doubt it.

Of course they are investments! What would you call them?

EdInvestor

Of course they are investments! What would you call them?


I'm not sure.....

:idea:

Tax avoidance schemes?

dunstonh

Of course they are investments! What would you call them?


I'm not sure.....

:idea:

Tax avoidance schemes?

So no different to ISAs then?

oceanblue_3

MJSW says this...
"Are you now trying to say that you don't think the equivalent rate on dividend income is 33%, as you seem to be denying it? And if so, what is the equivalent rate on dividends in your opinion?"

I did not say it was an equivalent rate on dividend income. For the sake of clarity, please show me where I have referred to an equivalent rate of 33% on dividend income. You were willing to scour your own posts to make your point. I have looked again at my posts, and I cannot see any reference to it whatsoever.

timesphere

Started reading this thread and it was interesting, thought maybe
I could learn how to increase my income.

Its sort of developed into Big Brother 6 (boring arguements)

I would rather pay 50% tax on 10k than 0% tax on 1k

any of you got any ideas on how to increase INCOME ?