Financial planning strategies
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  1. #11

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    OK, I'll bite.

    What I've been attempting to do is "hedge bets" on what will turn out to have been the right thing to do, given uncertainty about future government tinkering.

    Until the current year, I was paying salary of ~8K (previously ~10K) and paying 100% of this in personal pension contributions. I've then been making a lump sum company contribution at year end (in October) based on a fag-packet projection of how much I can afford to contribute whilst having enough in the bank at the end of March to max the basic rate band allowance with dividends and hopefully leave something in the warchest; this has varied between 5K and 15K.

    In other words, I've been paying between ~13K and ~25K per year into the pension, which I think is "reasonable" for someone who is earning - meaning invoicing - somewhere between 80K and 150K per year depending on level of idleness.

    I've since stopped the personal contributions, as I'm not sure this is still the right thing in light of the dividend tax changes, in addition to which I''ve spent a few quid fixing up the house this year, meaning that a pension contribution "holiday" was no bad thing. I did make a small company contribution at year end. "Fixing up the house" is of course also an investment in a certain sense, and possibly a fairly tax-efficient one at that.

    I am also making ISA contributions out of what is left after house-fixing, wine, women, and song, but these are naturally somewhat smaller due to Brexit-induced inflation of wine prices.

    The S&S ISA exists to support the idle fantasy that I will actually be able to chuck this all in at a reasonably young age and live off the investment income from that until the pension income starts.

    BTL not my style at all, it's too much like hard work and I understand that Hector - who is a man with a lot of time on his hands - has also been taking a keen interest in this area of late.
    Last edited by Ebenezer; 13th November 2017 at 21:01.

  2. #12

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    Quote Originally Posted by MrC View Post
    Not sure if you followed my op. Looking at Hargreaves bumpf isn't going to inform an answer. This is not a question of what should i invest in.
    My answer was aimed 100% at a post you made above. I quoted it and responded with my opinion.
    Public Service Posting by the BBC - Bloggs Bulls**t Corp.
    Officially CUK certified - Thick as f**k.

  3. #13
    MrC
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    Quote Originally Posted by SueEllen View Post
    No one can give you an answer as no one is in exactly the same situation as you with exactly the same risk appetite.

    You have to do your own research and then work out what you want to invest in.

    In regards to the government doing random things - unfortunately no-one apart from Chancellor can control what the government gets up to.
    Not the exact same situation granted but the rules surrounding tax are the same for everyone (unless you happen to be Google, Amazon et Al).

    Controlling the chancellor would be nice but I'm really just trying to anticipate likely changes and mitigate risk accordingly.

  4. #14
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    Quote Originally Posted by Ebenezer View Post
    Until the current year, I was paying salary of ~8K (previously ~10K) and paying 100% of this in personal pension contributions. I've then been making a lump sum company contribution at year end (in October) based on a fag-packet projection of how much I can afford to contribute whilst having enough in the bank at the end of March to max the basic rate band allowance with dividends and hopefully leave something in the warchest; this has varied between 5K and 15K.
    Thanks for the insight. Sounds like a tax efficient strategy. Quite skewed towards maximising pension contributions now so you'll have made it the best of it if higher rate pension contribution get the chop.

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