are you liquidating a work scheme? one of my friends has been living of his work schemes since he's retired over 15 years ago, the company ain't doing great neither, might be worth thinking about leaving till you actually retire then your CGT will be much lower and it also considered as part of your personal income allowance.
Pension fund performance - do you monitor yours, how is it doing, do you actively change it?
- Thread starter danlightbulb
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are you liquidating a work scheme? one of my friends has been living of his work schemes since he's retired over 15 years ago, the company ain't doing great neither, might be worth thinking about leaving till you actually retire then your CGT will be much lower and it also considered as part of your personal income allowance.
No, some shares that did really well for me, with the downside being a big CGT bill. So mitgating that by selling an amount pretty much equal to my PAYE income to max out 10% CGT (or as it turned out MORE than my PAYE, hence the problem). The fact that I also got tax relief into the pension also made it attractive. I'm over 55 so can take my pension at any time, so it's not like I'm locking it away for years.
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Ahh.. nice problem to have..
Personally if I was in that situ, I would be looking at;
Putting all of my salary into the pension expect for £12,570 as it’s tax free anyway.
Liquidity the shares,
3k tax free
placing 20k into an S/S ISA (10% tax)
Placing the remainder 17.7k minus the 12.5k and the taxes your paid into premium bonds.. (10% tax)
Anything more than that will be tax at 20% but that is still lower than income tax plus NI.
You can’t really have more than 20k in normal savings as your get charged tax on the interest over 1k, if you already have 20k in the bank to earn that interest, don’t forget to take that amount off the allowance.
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unless you're planning to take all the cash out soon... it's not really going to make a difference in the long run... as they will always be some bad market periods during everyone's retirment.timing of all this chaos couldn't have been worse for me, supposed to be retiring tomorrow.
Soldato
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Now is unlikely to be a good time, surely? If the market is down, you're entering another market at a low price. IMO (not an expert), you'd be better off waiting until they perk back up again. I would also then be inclined to take my money out of America.
Having thought about it I'm going to see if I can leave my current portfolio as is but split my future contributions into a couple of different funds that have been out performing the current default one for a number of years
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Sounds sensible.
I've been in touch with a financial advisor this week who recommended moving me from, at least partially, the S&P 500 onto the St James Place fund. Not sure what to do - my dad, who has a lot more experience, didn't seem keen. The benefit is that the SJP portfolio is much better diversified outside of America so it's not going to be subjected to Trump's lunacy. Moving it right now would be dumb, though.
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St James Place fund??!? I going to strongly recommend googling them.. lol
I was only in the supermarket the other month when some old bloke was trying to speak to his account because of his shares in the actual company, theres talk of a buy out and major restructing.
SJP
Ditch that 'advisor' quickly..
If you want to diversify your equity outside of the USA then just sell some S&P500 and buy some world excl USA tracker, they are available. However if Trump crashes the US market the rest of the world will follow.
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De-risking a portfolio near retirement...
how are people planning/doing it?
Traditionally managed funds will start to sell off shares at the 10 years to retirement and moving them into bonds, so at the age of retirement it's 100% bonds and they are sold to buy an annuity.
I have over ten years left before I will even have to start to do it but my thinking is that with 5 years to retirement, I stop buying shares and start to buy bonds and money funds to use as a buffer.
It should give me a 3 year bufferin both my pension and ISA. That way if the markets are bad at time of retirement, I can sell the bonds/money funds without selling my shares. I can always sell shares to top up the bonds/money funds at a later time when the market recoverys. If the market are fine, then it's just a case of selling whatever shares.
I'm only doing it this way as I fully expect a full state pension and I have two DB pensions which I plan to by an annuity with and have should have personal savings.
how are people planning/doing it?
Traditionally managed funds will start to sell off shares at the 10 years to retirement and moving them into bonds, so at the age of retirement it's 100% bonds and they are sold to buy an annuity.
I have over ten years left before I will even have to start to do it but my thinking is that with 5 years to retirement, I stop buying shares and start to buy bonds and money funds to use as a buffer.
It should give me a 3 year bufferin both my pension and ISA. That way if the markets are bad at time of retirement, I can sell the bonds/money funds without selling my shares. I can always sell shares to top up the bonds/money funds at a later time when the market recoverys. If the market are fine, then it's just a case of selling whatever shares.
I'm only doing it this way as I fully expect a full state pension and I have two DB pensions which I plan to by an annuity with and have should have personal savings.
Jesus wept - Don't do it.
St James place are literally one of the worst offenders in the market at having shockingly poor funds. Charges are awful as well.
More than a quarter of SJP's funds do not deliver value
The latest value for money assessment of St James's Place's 45-strong fund range found more than a quarter of its funds are deemed not to be good value.
www.ftadviser.com
If you want independent financial advice - DO NOT go to St James Place. They will literally only sell you their funds.
A diversified portfolio is not difficult to do yourself. If you need advice/want advice find a proper IFA.
www.unbiased.co.uk
www.vouchedfor.co.uk
The amount of business/clients I've taken from St James Place over the years is ridiculous. Some of the fund performance / charges is criminal.
4.5% initial charge / Exit penalties in the first 6 years on a pension.... It's a disgrace how the FCA have allowed them to continue like that
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What have you heard?
SJP
Ditch that 'advisor' quickly..
If you want to diversify your equity outside of the USA then just sell some S&P500 and buy some world excl USA tracker, they are available. However if Trump crashes the US market the rest of the world will follow.
Hah well I haven't taken him up on it. I think I've been doing pretty well on my own tbf
Soldato
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Jesus wept - Don't do it.
St James place are literally one of the worst offenders in the market at having shockingly poor funds. Charges are awful as well.
More than a quarter of SJP's funds do not deliver value
The latest value for money assessment of St James's Place's 45-strong fund range found more than a quarter of its funds are deemed not to be good value.
If you want independent financial advice - DO NOT go to St James Place. They will literally only sell you their funds.
A diversified portfolio is not difficult to do yourself. If you need advice/want advice find a proper IFA.
www.unbiased.co.uk
www.vouchedfor.co.uk
The amount of business/clients I've taken from St James Place over the years is ridiculous. Some of the fund performance / charges is criminal.
4.5% initial charge / Exit penalties in the first 6 years on a pension.... It's a disgrace how the FCA have allowed them to continue like that
Thank you!
In fairness I am, and I won't actually need to touch this for a few years if I don't have to, but there's probably more disruption to come here
Not really, this has been a bit unplanned due to a cancer diagnosis. Just decided life's too short, selling my business (concludes today as well) and this hasn't been the #1 priority. It's all really happened in the last three months to be honest
Not everyone does this these days, there is a school of thought of just letting it ride all on equities forever.......