You are unauthorized to view this page. Username or E-mail Password Remember Me Forgot Password Questions: 00:00:00 - Intro 00:01:26 - Asked this question a few weeks ago and at the time it was a case of “waiting for the detail from HMRC” - any progress on that?…….Try to understand what the “new” lump sum limit(s) are if a DB scheme has already been crystallised (£900k of the LTA) without having taken any lump sum and there is a separate uncrystallised DC pot (£400k) waiting ? Is the full 25% of the £1.073m available now or is it only 25% of the £173k balance? 00:02:20 - Probably an oft repeated question so apols. Any guidance/criteria re when to make investment changes after such market flux. I want to reduce my holdings (SIPP and ISA) in Van LS60/40 as I feel the bond % is way too high for the time it will be invested. My various inputs into LS 60/40 span 2019 to 2021 and overall I'm about even.....emotionally that feels a good time to sell and buy global all cap accumulation index....but are there any non emotional criteria. (I ask this after having assessed my risk taking into account my age, years to retirement, poss retirement duration, other retirement sources (DB, Rental, SP, ISA, investment bond) and I def want to reduce 60/40 fund holding.) 00:04:04 - I have a sipp and just retired. Currently dont expect to use but pass on to my children. I understand if I die before I'm 75 the children obtain the fund tax free and if die after 75 they suffer tax at their marginal rate. So if I took the tax-free ,25% and left the balance in drawdown for the kids would that be better in total tax take. Ie should I take the tax free cash or not.? 00:07:25 - I am working my way through the retirement planning course. If I only have a SIPP an no other savings to speak of, when it comes to the cashflow ladder would it make sense to move money into cash but keep it in the SIPP (and get about 2.5% interest) or to convert a portion to money market funds instead of cash? I will need to use some of the tax free cash to payoff the mortgage. I was just wanting to avoid as much tax as possible. If I take two years of cash out of the SIPP then surely I will get stung with a high tax bill? 00:10:49 - My question is about how to hold the cash block of the cash flow ladder. I know it's been discussed before but wondering if it's changed at all with the higher interest rates. My plan is to use up Cash savings accounts first (split between my wife and I), as rates are higher then use Cash ISAs. After that I'm hearing that Premium Bonds maybe be a sensible option. However, I've heard about Money Market Funds, I'm not really sure what they are and whether they have a place here. Could you share some thoughts please? Thanks. 00:12:48 - Looking to retire to EU - likely to be Portugal or Spain. Do you have any experience or advice on what areas of financial planning to look at in relation to accessing SIPP while living abroad? Would you recommend any resources to investigate? 00:14:23 - Excluding this current tax year my wife as a HRT still has £16,000 cumulative pension allowance available still to use for the previous 3 years. It is my understanding that she should pay directly into her SIPP £12,800 to which the Govt will top up by 20% (£3200). In next self assessment she would claim back 20% tax relief. I am retired and already accessing my SIPP. Am I able to contribute towards this by making a UFPLS withdrawal? I have asked this question via the community before but I just want to confirm that this is not against any pension recycling rules. 00:16:44 - In your last Q&A you shared a thought that maybe a rethink of the cash ladder may now be due with perhaps up to 5 years held in cash with various sources and then the rest totally in equities. Just wondered if you have had any further thoughts on this that given that global bonds have continued to underperform for all the reasons already discussed on this forum. 00:21:55 - I have modelled in Voyant to buy a car for £30k every ten years. Projecting forward this means large withdrawals from my pension in these years which would push me into a higher tax rate band. Would it make more sense to spread the £30k withdrawals from my pension over ten years (3k per year) and ‘save’ this amount each year, thus taking out the money as a basic tax rate payer. Would you create a savings account in Voyant for this purpose and then model a payment from this account every 10 years, or am I just over thinking this? 00:23:14 - Thank you for the information you gave me last time re how much I can contribute to my newly opened SIIP. My question is, would it be better to make annual lump sum contributions into this pension or monthly contributions? (Brief context is- I’m working p/t on a SE basis so no employer contributions. I have a DB pension to live on but have cash savings which will take me over the current PSA and I’ve already used my ISA) I’m thinking lump sum (erring on lower expected income for this tax year and top up at end of tax yr if earrings exceed expectations?) 00:24:10 - Picking up on a couple of cashflow ladder "revisit" questions I am still sorting out my in retirement portfolio and trying to force myself further down simplicitiy street. So keen to hear thoughts on cashflow ladder and then how to implement ie: if do go with a simply MA fund then how to hold lower risk assets ( eg if bonds still in the mix ) so that you don't have to sell MA units in a market downturn. Related to this loved the recent Pick a fund video to look for MA funds. I would be very interested to learn how do you compare / work out combined sharp ratio a portfolio of say 4-5 ETFs so that you can compare that to a MA benchmark - thank you 00:26:04 - I understand the recommend order of withdrawls from products in your portfolio, however I have a question about a specific circumstance. I will use hypotheticals to simpliy the wording. If say I could access a DC pension at age 55, but still have funds remaining within an ISA. Does it make sense to start withdrawing from the DC pension up to the threshold where tax is not paid (UFPLS) even if technically the funds aren't needed because the ISA can cover my spending for the year. My thinking is if I live on a split of ISA and DC pension (up to tax free amount) then I can effectively delay having to pax tax for a few more years as my spending goals can be met across ISA and DC. Where as if I burn through the ISA cash then I would need to start withdrawing bigger amount from DC pension sooner and therefore end up paying more tax This might be hard to understand in writing. 00:29:17 - I've just watched a Chris Bourne video called: "50k Retirement Income Tax Slashed By 5k+ A Year... Here's How" https://youtu.be/nUDQ1Zq-ee0 . I know that you respect Chris Bourne. I want to make sure that I've understood this correctly, and that my thinking is right if I did a salary sacrifice AVC to reduce my income as low as I possibly can. My employer has just introduced salary sacrifice AVCs. N.B. Chris doesn't discuss salary sacrifice AVCs (it's just my twist on what Chris discusses). N.B. In addition to the AVC discussed below, I would also have the standard LGPS CARE pension contributions being made by myself and my employer. In addition to up to the personal allowance of income being at 0% (normally £12,570), Chris talks about the starter rate band, how the 1st £5K savings income (interest) is at 0%, but loses £1 for every £1 that income exceeds £12,570 (being fully lost at £17,570), hence most people not being aware of it or not benefiting from it. If I did a salary sacrifice AVC, for the maximum amount allowable, bringing my pay down to under £12,570 down to the minimum earning limit that salary sacrifice AVCs allow (based on an hourly rate I believe), could I save in high rate savings accounts and earn up to £5K without paying tax on interest income? Also, would this £5K of starter rate band 0% (effectively tax free) be in addition to the £1K interest personal savings allowance? Would that mean that I could potentially earn £6K in savings interest in high rate savings accounts if I maxed out on salary sacrifice AVC pension to bring my income down under the £12,750 personal allowance (or under my tax code allowance)? Then on top, earn £1K in dividends in a GIA eg. from a money market fund. Plus an extra £6K capital gains allowance in case anything in a GIA grew in capital outside of the dividend income. The above would be at relatively low risk compared with stocks and venture capital etc. Have I got hold of the right end of the stick if I use salary sacrifice AVCs to the maximum to reduce my salary as low as the minimum wage threshold will permit. Or have I missed something and hoping that it might be correct too much. Would the salary sacrifice AVC done to the max be optimal in this circumstance? Have I overlooked or misunderstood anything? Not personal advice, just education. 00:30:28 - Reference LTA. This tax year the LTA remains but the LTA Charge is zero. We don't have full visibility on what will happen in the future with this or other governments. If you have pensions totalling over the LTA, is it worth crystallising the the whole lot whilst you can? Under the current publicised rules it appears not to matter. But can you see situations or interpretations that might make it worth while? Next bit not to be read out please, AJ BELL just asked me this exact question, " do you want to crystallise the whole SIPP, not just upto the LTA but also the portion above the LTA" , for clarity I was only assessing the max tax free cash. 00:32:47 - I was wondering what your thoughts are on what number to use for inflation when modelling in Voyant Go. 00:33:09 - I'm sure this will have been covered before so appologies if I am going over old ground. Can you please explain the logic behind the liquidation order (1-taxable, 2-tax free, 3-tax defferred, 4-draw down pension, 5-line of credit) when building your plan in Voyant? I assume this is optimised to maximise the income and minimise tax liabilities. Does this work in all cases or are there exceptions that should consider a different strategy? If you did not specify the liquidation order, does Voyant not work out the "best" order? 00:35:38 - I recently heard the government was considering raising the state pension age to 68 but is putting off the decision until after the next election. So not before 2025. Given I will be in my early 50s when the decision is taken - I currently have a state pension age of 67 but need to consider that it may rise to 68. This didn’t initially sound too drastic of a change when I first heard about it, however thinking further I also have to factor in the availability of my private pension in deciding when I can retire. This seems to make planning my retirement age a much more immediate challenge - given the age at which one can access a private pension is state pension age minus 10. This also coincides with the period that you often term the “danger zone” between employment income ceasing (or reducing), pension income not yet being available but outgoings being high when you have the most time and hopefully health available to spend! Therefore without asking you to gaze too much into a crystal ball how might you approach such a situation from a financial planning perspective? Would you just plan for the worst case that I might not be able to draw from my private pension until age 58 and anything earlier is a bonus? Are there any other approaches you might consider? 00:37:10 - Thinking about IHT I wanted to invest some money into trust for each of my adult children. I researched how to establish a simple investment bond into a trust but was pointed towards the need for solicitor etc, so I didn’t really find anything that was low cost and simple to execute. My question is, are there any companies that offer low cost, simple ready baked investment products that can be established in a trust? Who are your go to companies, if any? 00:45:00 - Can Voyant model the difference between various DB schemes with differing inflation rises post retirement and how to decide if to take the tax free tax and lower ongoing annual payments? 00:49:07 - My LTA was set to be exceeded by a small amount. Now it's fine is it worth contributing £2880 to my SIPP each year br tax payer. 00:49:18 - Pete, I’ve just had a valuation for taking my pension at 56 but it goes up by 35% if I take it at 60! Surely no brainier to wait? It’s DB pension. 00:53:18 - Are you going to do any content for people retiring abroad? 00:53:30 - Any reason to use more than one platform? 00:56:53 - Is there a template spreadsheet for CGT in a GIA? Prev LessonNext Lesson