Financial planning strategies
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  1. #1
    MrC
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    Default Financial planning strategies

    So my current strategy has been to take modest salary, divs up to HR limit, little or no pension contribution to try and amass as big a warchest as possible. Plan then is to leave contracting several years down the line with bumper a ER payout and go and do some other totally different work.

    Expecting that this other work may see me salaried paying higher rate I'd then look to take salarly sacfrifice on anything above the HR threshold to fund my pension. Thus catching up on missed pension contribution in a tax efficient way.

    I'm concerned of 3 areas of law that may change and scuppper my plans.
    • Pension higher rate "relief" removal
    • ER on disposal meddling
    • Private sector blanket inside IR35. aka "the death of contracting"


    The threatened removal of higher rate relief saw me putting a lump sum into pension days before the last budget so I'm considering doing this again although it makes a mess of my overall strategy.

    I know I could just pay into pension now and later when permie but I'd rather do ISAs, BTL etc as part of retirement income investments which need funds in the near term.

    Interested to know your thoughts on the best approach/risk mitigation - or indeed what others are doing if in a similar situation?

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    MrC
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    Bump. Anyone?

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    Double Godlike!

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    So live like a pauper until you're too old to enjoy spending?

    As David Brent recently said "I'll cash in another of my pensions, some of them are worth nearly as much as I put in...."

    Get an pension? Get a Maserati!!

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    MrC
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    £43,000 isn't a trivial income. Decent enough if you're not saddled with commitments. If on the other hand you've got 2 wives, 3 children 2 mortgages, 6 dogs, 3 cars and a gambling habit.... Perhaps not.

    Until you can pay yourself in retirement what you pay yourself now then all you're doing is living beyond your means

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    Some things in Moderation

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    Default Financial planning strategies

    Take a look at the stock and shares thread, thatís the way many are investing around here.

    http://forums.contractoruk.com/accounting-legal/80304-share-investment-discussion-tips.html

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    MrC
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    Quote Originally Posted by cojak View Post
    Take a look at the stock and shares thread, thatís the way many are investing around here.

    Share Investment, Discussion & Tips
    Thanks though without trudging through all 78 pages worth I'm none the wiser as on the face of it that thread is about what to invest in. My dilemma is about where to source investment funds from and tax efficiency. I can invest in the same shares, funds etc in an ISA or a SIPP.

    Is there a particular part of that thread that's relevant?

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    Quote Originally Posted by MrC View Post
    Thanks though without trudging through all 78 pages worth I'm none the wiser as on the face of it that thread is about what to invest in. My dilemma is about where to source investment funds from and tax efficiency. I can invest in the same shares, funds etc in an ISA or a SIPP.

    Is there a particular part of that thread that's relevant?
    To be honest, I do not think you are going to find what you are looking for here. Sure, there's advice like starting a SIPP, paying as much as you into it as a company contribution, up to GBP 40k etc... Then starting an ISA, and so on. But you need to look elsewhere beyond that. And actually, there has never been so much information so readily available. Just ask Google where you can find. If you are starting from a base of close to zero knowledge, I recommend you start by downloading and reading all the free guides from Hargreaves Lansdown. Then, perhaps we can help a little more.
    Public Service Posting by the BBC - Bloggs Bulls**t Corp.
    Officially CUK certified - Thick as f**k.

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    Respect my authoritah!

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    Quote Originally Posted by MrC View Post
    £43,000 isn't a trivial income. Decent enough if you're not saddled with commitments. If on the other hand you've got 2 wives, 3 children 2 mortgages, 6 dogs, 3 cars and a gambling habit.... Perhaps not.

    Until you can pay yourself in retirement what you pay yourself now then all you're doing is living beyond your means
    Not really. My expenses at retirement will not be anywhere near what they were when my kids lived at home and off my income.
    --drunk on abuse of power--

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    MrC
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    Quote Originally Posted by Fred Bloggs View Post
    To be honest, I do not think you are going to find what you are looking for here. Sure, there's advice like starting a SIPP, paying as much as you into it as a company contribution, up to GBP 40k etc... Then starting an ISA, and so on. But you need to look elsewhere beyond that. And actually, there has never been so much information so readily available. Just ask Google where you can find. If you are starting from a base of close to zero knowledge, I recommend you start by downloading and reading all the free guides from Hargreaves Lansdown. Then, perhaps we can help a little more.
    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.

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    I live on CUK

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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.
    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.
    "Youíre just a bad memory who doesnít know when to go away" JR

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