You are unauthorized to view this page. Username or E-mail Password Remember Me Forgot Password In this video: 00:00:00 - Intro 00:02:18 - Can Pete clarify the difference between flexi access draw down and UFPLUS. Specifically is UFPLUS limited to one per annum? 00:06:24 - Hi Pete, my question is about modelling a VCT Investment in Voyant: Could you possibly demonstrate this. I’ve tried a few ways but it’s just not working as I’d expect. Let’s say I invest £20k as a one off, hold it for 5 years then sell. I’d expect to see the investment in year one along with the tax credit of £6k (30%). Then I’d expect to see the VCT balance at £20k year on year for the next 5 years(assuming no growth/dividend), after that I’d want to withdraw it to a GIA or ISA account. I’m not worried about modelling growth of the capital or dividend reinvestment really although it would be good to hear any advice on how these should/could be set. Cheers. 00:15:30 - My wife has a DB and linked APECs and SIPP. For her DB scheme she has a retirement date of 60, which will pay c.£25k. She turns 55 in December and is not currently working but not sure she will work again. She also has £350k in her SIPP and around £150k in her APECs. She is thinking of using UFPLUS to draw c. £40k per annum from her SIPP till the age of about 64 when her DB scheme should pay out c.£35k and she would take out her £150k tax free from her APECs. She has a full state pension that pays from 68 and so she wants to ensure that she stays a basic rate tax payer. The question we have is on the lifetime allowance. In this circumstance how would it be calculated? We would assume that any pension left in her in her SIPP would be taken 25% tax free and the rest as an income to bring her up to £50k a year or so (assuming any left) at 64. How do we the test lifetime allowance at each stage at UFPLUS then we she starts the DB payments? She is close but not quite at the lifetime allowance at the moment depending on investment performance and tax changes. The income figures we have given are sufficient for her needs. Thanks 00:22:22 - Hi, I'd like to know what Pete thinks about the bonds market currently, particularly with regard to my specific situation. Until quite recently I had been assuming FI was at least 8-10 years away for me and my investments are very heavily weighted to equities. I now think I can reach FI/semi-retirement in the next 1-2 years so I'm thinking I should rebalance my portfolio to increase the bonds allocation (for my cashflow ladder). However, I am feeling really reluctant to do this in the current inflationary/rising interest rates climate where everything I've read says that bonds will not be a good investment over the next few years. I'd like to know what Pete would advise, thanks. 00:27:15 - I’m thinking of simplifying the drawdown ladder to three separate buckets - of cash, government bonds, and a 100% equity fund rather than having mixed asset buckets. I’m ten years away (hopefully) from retirement, so this is a bit of an academic exercise. I currently have all my pension invested in a 100% equity fund. Assuming I dial the risk back slightly when I retire, and then follow the draw down ladder approach, I’ll put years 1 and 2 expenditure in cash, years 3-5 invested 40% shares / 60% bonds, years 6-10 in 80% shares / 20% bonds and years 11+ invested in 100% bonds. If I simplify that down into cash, bonds, and equities (having years 11+ invested in 100% equities makes that simpler) I get: 2 years expenditure in cash, 3 years expenditure in bonds, The rest in 100% equities. It seams like this would be easier to manage. Any thoughts? Cheers, Steve 00:29:03 - I am in the process of updating our VoyantGo plan (for the 22/23 financial year) and have noticed that our IHT has increased by 126% in a year (which I assume to be a positive metric as it means that our Net Worth has increased significantly). Reviewing the IHT Insight Report, we really only have very minor IHT issues until 2042 (when I will be 82) and IHT increases until the end of the plan which is death at 90. The Plan already assumes maximising gifting exempt from IHT and annual charitable donations. My initial reaction was to go for a Guaranteed Whole of Life Policy (in trust) to ensure that my beneficiaries could pay IHT. However 20 years is a long way away and anything could happen in that time (Spurs winning the league – some hope), including later life care costs could eat into our assets or one of us dying early but on the other hand, we have used very prudent assumptions which means IHT could increase even more. Any guidance would be extremely helpful. 00:33:10 - Hi Pete, I have a question about Gifts as I want to start recording any I've made (or will make) to family in order to track against the £3k limit each tax year and/or if over to track when the 7 years is up. I read that gifts of £250 or less are excluded but if they are to the same people they must be counted. I'm not sure how best to monitor that? Also, I sometimes lend money to my children, say £500 or £1,000 just for a week or so to help them out. Can I exclude these if I can show the transfer out TO them and a matching transfer back in FROM them in my bank account? I may be overthinking this but any advice welcome. 00:36:07 - Hi Pete, I am concerned about how Voyant works out EOY Balances for Investments and pensions. It appears to work out the growth on the total balance at the start of the year and assumes that any money withdrawn from a source is taken out at the end of the year, which doesn’t make any sense. For example, if you have a SIPP with a balance of £50k and you need to take out £16,666 as a UFPLS in 22/23 and in Voyant you have set a growth rate of 5%, it works out the 5% on the balance of £50k (ie. £2.5k) adds this to the £50k and substrates the £16,666 to give you a total EOY balance of £35,834. But most people are likely to withdraw the £16,666 at the start of year because it’s required to be used in the year. How do you make Voyant assume that the withdrawal is made at the start of the year and hence, calculate the EOY balance correctly? 00:39:32 - Hi Pete, I’m trying to work out how much *gross* UFPLS I would need to take to end up with £20k pa *net* from a DC pension in due course. I know you can take around £16760 without paying any tax (one quarter is Tfc, rest is personal allowance). Just having difficulty with how to scale that up slightly, sure there must be a simple sum (or, even better, is there a calculator somewhere you can recommend?) Thanks! 00:41:26 - Hi Pete, I am considering transferring old money purchase pensions schemes into my existing SIPP. Main reason is to save costs on fees and to be more 'in control' of the underlying investments (wider choice and cheaper options). Should I be concerned that, in the hopefully unlikely event that I die within two years of the transfer, that HMRC might deem the pension to now fall within my estate for IHT purposes? The old scheme fees are high but they are not 40%. I've read quite a bit on the Staveley case judgement but I'm none the wiser for it. Grateful for any industry insights on whether advisors are counciling caution and if so in what circumstances would they recommend not transferring. 00:44:40 - Are there any implications if inadvertently paying more than 100% of earnings into a pension scheme in a tax year? Actual trading income reduced following COVID-19, but pension contributions didn't. SEISS payments led to an overall trading profit, but, if SEISS payments are not classed as relevant earnings for pension purposes, the amount paid into the pension would be more than 100% of earnings. Pension contributions are paid gross with tax relief claimed via the self assessment return. Is there a definitive guide to whether SEISS payments are relevant earnings for pension purposes? If they are not, is it a case of simply stating the full amount of premiums paid on the return and HMRC's system automatically calculating and applying the correct relief, or, a matter of trying to reclaim, from the pension company, the amount of excess contribution made? Hopefully, no penalties would be incurred? 00:47:10 - Please can you tell me what growth rate Voyant is assuming for State Pensions? 00:48:11 - If interest rates continues to increase. Does there come a point when you might consider using cash accounts for more than the two years in the cash flow ladder? 00:48:58 - Hi Pete, just wondered how taking 25% of your retirement pot tax free works? Say I had £100k and withdrew 10% the first year. The pot grows to £110k the second year - how much could I then take? Is it always 25% of the year you retire in? Thanks! 00:50:27 - I use shares bought in the company I work for to sell to contribute to using my ISA allowance. The share price is down about 20% ytd and I expect they will bounce back in the next 6 - 12 months. Is it better to sell them at less of a profit and crystallise this drop in value and use the ISA allowance or forego the ISA allowance this year? 00:55:22 - Maybe you could do a quick recap on promoting our Voyant plans ready for 6th April 2022 ? 00:58:49 - When does the gov.uk website update our state pension forecasts for the new tax year 00:59:08 - Is there a way to get Voyant to ignore my half of my main residence as joint tenants to get IHT accurate? Prev LessonNext Lesson