You are unauthorized to view this page. Username or E-mail Password Remember Me Forgot Password In this video: 00:00:00 - Intro 00:02:07 - Is a Bond fund to manage risk in the 3-5 year box of the cashflow ladder still a good idea? 00:04:05 - Can Pete explain again why he prefers bucket strategy in drawdown rather than using Safe Withdrawal Rate (SWR) method. Or the most suitable MM podcast for this. I’m currently using UFPLS method with a fixed annual amount (not inflation linked). It is about 2% of fund value so well below the 3.25% - 4% often recommended but not sure this is the best way. 00:11:24 - Following on from last months question regarding leaving a pension in drawdown on death is it possible to set up a Pension Trust for beneficiaries on death using a DIY approach or must I seek and pay for professional help? 00:13:27 - Suppose there a SIPP with a value over the lifetime allowance. Also suppose that the SIPP has not been crystalised because its aim is to pass on wealth by shielding it from inheritance tax. The SIPPs first benefit crystalisation event will be at age 75. This will incur a tax charge(?). Suppose the SIPP is 100% invested in equities and there is a market event after the valuation for tax and before the tax is paid that significantly reduces the value of the SIPP. A larger proportion of the equities will have to be sold to raise the cash to pay the tax. To anticipate such a possibility, is it a good idea to convert some of the equities into bonds (or an investment with lower volatility than equities) at a proportion that will cover the tax (i.e. 55%(?) of the excess value over the LTA)? Additionally, can the tax be paid from funds held outside the SIPP? 00:15:27 - I'm in a similar position to David Calders question on using Bonds for years 3-5 of the Cashflow Ladder. I am looking at a global bond index fund, a UK inflation linked gilt index fund, and a UK gilt ETF (VGOV) - all from Vanguard. I'm interested in your view on what allocation of each is sensible and is this best practise? There is lots of material on equities, and on equity/bond allocations out there, but less on how to diversify the risk free element of one's portfolio, especially with the threat of bond valuations due to inflationary interest rate rises. 00:17:38 - What are your best 3 tips to overcome frugality 'syndrome'. My Voyant cashflow forecast shows that we will have a very comfortable lifestyle (we have just commenced retirement) and that our guranteed passive income will more than cover all essential and desirable expenditure. However, I remain frugal even though I can afford and want to change. Help. 00:21:53 - I'm trying to adapt the cashflow ladder to the teachers pension (which comes with an additional tax free lump sum) for me. As the DB pension is "safe income", I was thinking the following might work: 2 years DB pension + additional lump in cash from the teacher tax free lump sum to make up annual spending; years 3-7 DB pension plus remains of tax free lump sum in a lowish risk stocks:bonds index fund e.g. Vanguard LS40; after 7 years, DB pension + state pension. Would that work? I have a stand alone SIPP and S&S ISA for "fun money" or to facilitate going part time, that I can turn on and off like a tap, depending on market conditions. 00:23:23 - My wife is a teacher and is a member of the TPS pension. As such there is a defined death in service sum. Can you advise where this should be entered into Voyant. I have already entered her Income Details and the TPS pension - it's just the death in service that is unclear - Thanks 00:25:54 - Again related to DB Pensions - when in an active scheme and making contributions via PAYE - I cannot see anywhere to set this - the affect is that the takehome pay is inflated because Voyant is not aware of a % DB contribution - advice please! 00:28:15 - I am a director of a Ltd Co. I wish to make pension payments from my Ltd Co to my SIPP. Is there a maximum limit I can contribute other than that dictated by profits made by the Ltd Co in that tax year. FYI I draw a salary of approx £12k and use my 2k dividend allowance every year. Thanks in advance 00:30:43 - Hi Pete, a question about asset allocation and where does your home feature. Is there a sensible portion of overall wealth to hold in your castle or should you divert all wealth over and above forecast needs as per Voyant into developing your home further? Thanks 00:32:40 - Can we discuss the edge case where it might make sense to try to avoid LTA tax ie: to build and ISA bridge that spans the gap between FI and pension access age and at the same time reduce LTA tax. The downside is taking an income tax hit now. I need to decide whether to divert more money into my ISA than my pension for the next few years in order to be FI (age 49) before pension access age (age 55). I basically have to choose between: 1) pay more income tax now because I’m reducing my salary sacrifice pension contributions from £40k per year to £15k per year. This enables me to put £20k per year into my ISA. The benefit will be that I reduce LTA tax as forecast growth suggests pension balance will be only slightly over LTA threshold at age 55). The other benefit is that that I’ll able to stop working at approx age 49 (forecast age for when my ISA will be big enough to fund the gap between FI and pension access age). 2) keep pension contributions at £40k per year which keeps my taxable salary lower (less income tax now), but I won’t have any spare money left to put more into my ISA (current balance is £150k). If I use this approach I won’t be able to put any more contributions into my ISA but as its current balance is £150k it’ll eventually grow to be big enough to stop working at approx age 53. The downside is that I have to work a few more years and I’ll also pay more LTA tax on my pension Is anyone else facing this tricky decision? 00:38:08 - Is it possible to buy a short term annuity from funds that aren't in a pension? A friend needs to prove a secure income for a visa application and has investments but no pensions not in payment. If so do you know any providers that do it? 00:39:48 - I want to draw a monthly UFPLS now and monthly tax free cash once I get my state pension but now find my provider AJ Bell don't offer these facilities. I've since discovered that I can get monthly UFPLS from my smaller pension with Standard Life so I'll start with that. Do you know if any providers would allow me to withdraw monthly UFPLS and/or tax free cash? If so who? 00:40:48 - What are Petes’ thoughts on early repayment of mortgage? I’m 53 with about 9 years to run, monthly mortgage payments are manageable and income secure / predictable. My (simple repayment) interest rate is a stupidly low 0.35% above the Bank of England rate. 00:43:17 - Question on inheritance - if equity is held in an ISA before transfer, is it inherited within the ISA wrapper following the transfer? 00:45:38 - Your thoughts Pete. Retirement cash buffer for market downturns held as cash within a SIPP as cash vs. cash buffer held outside of a SIPP. Cash put into and held in a SIPP would have a 25% HMRC uplift. What are the pros and cons of holding some or all of the cash buffer in a SIPP, and is there anything else worth considering? 00:46:50 - Is it true that if you combine two or more SIPP accounts that are in drawdown with different providers to a single provider, you can't split them up again and can only move combined account as a whole between SIPP providers? 00:48:48 - Given that at some point you will want to split out the equity and bond portions of the multi-asset funds in your Year 6+ buckets, is there a reason for not simply having the "right" proportion of separate equity/bond funds in each bucket? 00:49:28 - Close to LTA. What are the arguments for and against crystallising now and re-investing the tax free cash is ISAs, spouse’s SIPP etc? 00:52:02 - Having read more and more about the bucket Strat versus other strategies, I have realised that it is more about psychology rather than absolute returns. If you look at it like that, the Bucket Strat makes much more sense. 00:53:00 - Default Market Crash figures, Voyant loss analyser. 00:57:10 - Just confirming, did you say you're currently using 50/50 between Index-Linked Gilts and UK Gilts All Stocks Index tracker funds? 00:57:32 - Could you demo best way/place to entering DB pension that has just gone into monthly payment (% of LTA used has also been provided) 00:59:37 - Who would be best to have detailed tax / LTA conversation with - an IFA / Planner or Accountant? particularly interested in the early crystallisation concept as I'm currently over the LTA (in the pot) and just retired. Prev LessonNext Lesson