Intelligent Money - your investment questions answered
Discussion
mikeiow said:
ElectricSoup said:
Ok, we're going off topic a bit, it is fair to say that different returns can be achieved in different parts of the country and in different sectors of the rental market. The trick is finding the best return, not just looking at property in your own immediate area.
My point stands though even if you looked at £750 a month for 4x 200k properties. That would still bring in a bit more than £28k a year, and benefit from some capital growth in the background. But better returns are available if you spread your capital thinner, in different parts of the country.
What I'm hoping to find out from folks like JulianPH etc is what kind of financial products can match this in terms of "yield" as they call it.
Here's the sort of property I'm talking about.
https://www.rightmove.co.uk/property-for-sale/prop...
It would rent for about £350-400pcm I would estimate, going on similar properties in the area.
My view is that you can absolutely take that approach if you prefer: but property rental is not always a low-touch investment....unless you use a full management agent, who I imagine might take a tidy chunk out of things. My point stands though even if you looked at £750 a month for 4x 200k properties. That would still bring in a bit more than £28k a year, and benefit from some capital growth in the background. But better returns are available if you spread your capital thinner, in different parts of the country.
What I'm hoping to find out from folks like JulianPH etc is what kind of financial products can match this in terms of "yield" as they call it.
Here's the sort of property I'm talking about.
https://www.rightmove.co.uk/property-for-sale/prop...
It would rent for about £350-400pcm I would estimate, going on similar properties in the area.
I suspect quite a lot of older people might be using TFLS (the tax free lump sums from their pensions) to buy rental places in order to get a more regular income.....& if the numbers work, why not! Just be prepared to put a bit more into it that than you would a passive tracker
We have a holiday cottage, and whilst we do make some money on it, the maintenance can potentially take a chunk out. Terrible investment from that perspective (although we own it for other reasons, & specifically do not aim for maximum occupancy). Some days it feels more like a millstone than a holiday place!
Was curious to see if the sort of things you call "passive trackers" could compete in terms of yield, I guess not. Perhaps I'll take a mixed approach and have some of these "passive trackers" and some property. Maybe.
Actually we do already have one rental apartment to our name. We rent it to my mother-in-law for £0 and no pence per month. Such an agreement, however, tends to lead to very few complaints or maintenance issues for the landlord... Financial genius, me, see?
Edited by ElectricSoup on Tuesday 4th February 13:45
Mr Pointy said:
JulianPH said:
Mr Pointy said:
Did you mean exclusive or inclusive?
I was just testing!
I meant inclusive!
How is the GIA transfer in work coming on?
ElectricSoup said:
superlightr said:
ElectricSoup said:
Thank you very much for the fantastic answers from JulianPH and mikeiow. Really very, very helpful to a beginner.
I would very much like to leave the capital alone as far as possible, and pass it on as an inheritance once I'm gorn. So it really is all about maximising income from the capital as long as possible, rather than nibbling away at it. Of course, I may need to buy myself the odd beige Honda Jazz out of the capital...
So even if I could be confident of £28k a year income that would probably be sufficient for my needs. Actually I say "my" but I am talking about 2 people here, myself and my spouse.
Where I lose your reasoning a bit is around property. If we take an arbitrary figure of £800k, that would buy 16 flats of around £50k value each. £400 a month rent out of each of them would be £6,400 a month, before costs. Let's assume £2k costs every month (allowing for voids, repairs, defaults, fees etc), that's still way better than £28k a year.
Am I missing something?
a flat at £50k wont be very nice and most likely be in a depressed area of the country. which in turn attracts low end/higher risk tenants and high turnover of tenants. You shouldn't work on 12x monthly rent. I would very much like to leave the capital alone as far as possible, and pass it on as an inheritance once I'm gorn. So it really is all about maximising income from the capital as long as possible, rather than nibbling away at it. Of course, I may need to buy myself the odd beige Honda Jazz out of the capital...
So even if I could be confident of £28k a year income that would probably be sufficient for my needs. Actually I say "my" but I am talking about 2 people here, myself and my spouse.
Where I lose your reasoning a bit is around property. If we take an arbitrary figure of £800k, that would buy 16 flats of around £50k value each. £400 a month rent out of each of them would be £6,400 a month, before costs. Let's assume £2k costs every month (allowing for voids, repairs, defaults, fees etc), that's still way better than £28k a year.
Am I missing something?
We recommend to work on 10 out of 12 often if you get the right property/agent then you may well get less voids.
Saying that many properties we look after are let for 12 mths and then extend for another 12 or longer so you can get closer to having 11/12 let or 23/24 mths let.
The "income" is income but you do need to factor in the capital growth as that an important part of the calucations/guess.
The key is to get a nice property in a good area with high demand and a decent Letting agent.
Maybe I'm still missing something? I don't know. But even disaster calculations make it look far better in income terms to do this, from my admittedly simplistic analysis.
Having said that, Groat manages this very well.
As you are selling existing assets at a future date to invest them for your retirement remember there could be capital gains tax to pay (though not from your primary residence).
You also mention leaving this eventually as an inheritance. Remember this will give rise to a 40% Inheritance Tax bill and the kids will also have Capital Gains Tax to pay if they need to sell some properties to meet this bill.
So financial planning is very important. You may (or may not) be able to gradually sell down part of these assets over the next 10 years and utilise £120k of Capital Gains Tax relief via your annual allowance.
You could then invest these assets into a pension/SIPP whereby your received full income tax relief every year, lowering your tax bill and adding to the value of your money in doing so.
Pensions/SIPPs are also exempt from Capital Gains Tax and Income Tax on any growth/income whilst still invested. One quarter of your money can be withdrawn free of Income Tax (the rest just taxed as income in the normal way) and everything inside it is completely free from Inheritance Tax.
Equally you could put some of the proceeds into an ISA where this become completely free of Capital Gains Tax and Income Tax.
You could get £600k invested in highly tax efficient savings in this way over the next 10 years (double if you used your wife's allowances).
This could save you £120k in capital gains tax (£240k including your wife's allowance) and get you a further £80k in pension tax relief (£160k including your wife's allowance), making you £200k to £400k better off before you even start retirement.
Add to this the tax free growth and income over the 10 years and the tax free element of your income in retirement and you can see how you can take a lot more net income every month from a lower yield when compared to needing a higher yield from residential property letting.
You can also access surplus capital growth on demand to supplement this "income". With property you have to sell everything (or take out a mortgage) to do this (both of which incur large costs).
So investment management is not just about selecting assets, it is about financial planning and tax mitigation along the way.
Sorry this has been another long-winded post, but I am trying to cover things in a basic way, which is not easy to do in writing when this involves many points.
If you would like a face-to-face overview of all of this (and in plain English) then get in touch with Nik (nik.burrows@intelligentmoney.com) and he can enlighten you to a lot over a coffee!
Cheers
Julian
ElectricSoup said:
Yeah, my eyes are open to that sort of thing. I'll need something to moan about and keep me a little busy in retirement, after all.
Was curious to see if the sort of things you call "passive trackers" could compete in terms of yield, I guess not. Perhaps I'll take a mixed approach and have some of these "passive trackers" and some property. Maybe.
Actually we do already have one rental apartment to our name. We rent it to my mother-in-law for £0 and no pence per month. Such an agreement, however, tends to lead to very few complaints or maintenance issues for the landlord... Financial genius, me, see?
Well there will be plenty to moan about!Was curious to see if the sort of things you call "passive trackers" could compete in terms of yield, I guess not. Perhaps I'll take a mixed approach and have some of these "passive trackers" and some property. Maybe.
Actually we do already have one rental apartment to our name. We rent it to my mother-in-law for £0 and no pence per month. Such an agreement, however, tends to lead to very few complaints or maintenance issues for the landlord... Financial genius, me, see?
Edited by ElectricSoup on Tuesday 4th February 13:45
you'll need around 5 properties to keep it viable if you want to make anything & you'll be pleased as the ability to discover how people rarely keepto the agreements will keep you moaning away.
Ummm OK , I have a clause if you are going to be away from the property for a month or more please do not turn off the boiler...
This teneant went away for 5 weeks, yes it was off & yes when they got back it was full of air locks. he didn't call me right away as he wanted to see if he could work it out, he could'nt so i arrived with a plumber in tow . the plumber turned everything back on & within miniutes there were blood curdling screams from the woman upstairs, they had tried to bleed it but had NOT retightened any of the bleed screws back in & all the radiators were pumping out the coolant in each room!!
Another wheeze you'll like , triyng to get the partner in through the back door to avoid the credit checks etc onto the lease, turns out this one had a teenage son (a few in fact) & this particular one had some sort of PThd whatever & the last property he was charged with Arson...you'll have lots to keep your brain a live ...I'd just Follow Julian ...which I am contemplating ...
JulianPH said:
renmure said:
Hi Julian.
Hope you don't mind but I've taken the liberty of emailing Nik to see if it's worth having a chat about stuff. No doubt I'm fairly small scale for PH but I intend starting a goatee beard, am looking longingly at TVRs and am hunting for staircases to dominate.
Jim
Hi JimHope you don't mind but I've taken the liberty of emailing Nik to see if it's worth having a chat about stuff. No doubt I'm fairly small scale for PH but I intend starting a goatee beard, am looking longingly at TVRs and am hunting for staircases to dominate.
Jim
Nik will be more than happy to go over anything you like with you.
Cheers
Julian
Mrs R and I have a couple of things to chat about this evening then I imagine things will move forward from there. If she simply asks for an Executive Summary of the call then I’ll wing it and tell her he said to buy a Lamborghini. God luvs a trier!!
renmure said:
JulianPH said:
renmure said:
Hi Julian.
Hope you don't mind but I've taken the liberty of emailing Nik to see if it's worth having a chat about stuff. No doubt I'm fairly small scale for PH but I intend starting a goatee beard, am looking longingly at TVRs and am hunting for staircases to dominate.
Jim
Hi JimHope you don't mind but I've taken the liberty of emailing Nik to see if it's worth having a chat about stuff. No doubt I'm fairly small scale for PH but I intend starting a goatee beard, am looking longingly at TVRs and am hunting for staircases to dominate.
Jim
Nik will be more than happy to go over anything you like with you.
Cheers
Julian
Mrs R and I have a couple of things to chat about this evening then I imagine things will move forward from there. If she simply asks for an Executive Summary of the call then I’ll wing it and tell her he said to buy a Lamborghini. God luvs a trier!!
Glad he was able to be useful to one of us!
To really be able to bluff it you will need the model and variant and Nik can give you a full report on how little this would cost you and how much you would save over time in the grand scheme of things.
That's what he did with me a long time ago when he bought his first TVR (true story)!
On a serious note, Nik has the ability to explain very complex matters in very simple language. This, combined with his history of cars, is what made him my ideal choice for people here.
He is rapidly running out of capacity though, so we have to find some more Niks (or damage him beyond repair in some sort of mad cloning attempt!).
Cheers
Julian
JulianPH said:
Mr Pointy said:
JulianPH said:
Mr Pointy said:
Did you mean exclusive or inclusive?
I was just testing!
I meant inclusive!
How is the GIA transfer in work coming on?
JulianPH,
I was intrigued by your Imperial Brands/BT Bond yield comment in the £500k thread.
I may have a hefty tax bill due in January 2021 (lets say £100k for the sake of argument), and will have the cash to invest in the meantime.
It seems to me that a spread of decent corporate bonds with redemption dates prior to, but close to that date might be a decent approach.
Any thoughts?
loafer123 said:
JulianPH,
I was intrigued by your Imperial Brands/BT Bond yield comment in the £500k thread.
I may have a hefty tax bill due in January 2021 (lets say £100k for the sake of argument), and will have the cash to invest in the meantime.
It seems to me that a spread of decent corporate bonds with redemption dates prior to, but close to that date might be a decent approach.
Any thoughts?
Hi lofer123I was intrigued by your Imperial Brands/BT Bond yield comment in the £500k thread.
I may have a hefty tax bill due in January 2021 (lets say £100k for the sake of argument), and will have the cash to invest in the meantime.
It seems to me that a spread of decent corporate bonds with redemption dates prior to, but close to that date might be a decent approach.
Any thoughts?
You may be able to reduce this tax bill significantly and carry them forward against future gains.
This is a complex area and differs from person to person.
If you would like professional input in this matter please do contact Nik (nik.burrows@intelligentmoney.com) and he can work with and you accountant to minimise any tax payable.
Corporate bonds are just one asset class (and the examples I gave we for share dividend yields). A combination of different asset classes (or diversification in the same asset classes) can lower risk and increase average annual returns (though concentration can increase long term returns).
With all unwrapped (pension/ISA) investments you need to bed and breakfast gains every tax year (to take advantage of your annual allowance) and carefully plan and record losses you are able to carry forward.
With a potential six figure tax bill I really would drop Nik an email and potentially save a lot of money (or at least explore this) at no cost!
Cheers
Julian
fesuvious said:
Hi Julian
Just roughly,
If I handed IM £2m andd said it could be split 3 ways for ultra safe / fair / risky what do you think the income could be if the capital were to grow in line with inflation?
Just an approximate.
Roughly, based on past performance (which is absolutely no guarantee of future performance):Just roughly,
If I handed IM £2m andd said it could be split 3 ways for ultra safe / fair / risky what do you think the income could be if the capital were to grow in line with inflation?
Just an approximate.
Edited by fesuvious on Wednesday 5th February 18:14
At our lowest and most defensive level of risk/reward (never once down in any calendar year) it would (after inflation) have been £50k a year (with an additional £50k set aside for inflation).
For a cautious approach this would have been c. £80k after inflation (c. £130k in total).
Fair risk would have delivered an average of £150k a year (before inflation) and £130k a year after inflation.
Higher risk £530k a year on average (before inflation) and c. £480k a year after inflation.
All of these figure are annual averages based upon historic returns. It is simply not possible for me to tell you whether these will be higher or lower in the future.
What it can tell you is that diversification is a very good idea!
If you went into quarters on IM Optimum Defensive, IM Optimum Cautious, IM Optimum Global Growth and PH Equity (there is also IM Index to consider) then you would be looking at £250k a year on average (after inflation), which is a a double digit return from a very diversified portfolio with only c, 60% in stocks.
If you are looking for index linked growth and income this may be a great way forward. I you are purely looking for growth alone (or income alone) then there may be other options that are better suited.
All of the above is based upon your "just roughly" premise, in order to give a quick and short answer. Many other factors may need to be considered before you make any move.
We are happy to provide you with unlimited information and guidance to assist you in any choice you wish to make. This is also free of any charge, regardless of your eventual decision.
Cheers
Julian
fesuvious said:
Thanks Julian, appreciated.
Your numbers are higher than I had been working on.
Once the strategy plays out, hopefully I will be in touch.
My numbers are likely to be higher than what you had been working on due to the last 10 years being predominately rising markets.Your numbers are higher than I had been working on.
Once the strategy plays out, hopefully I will be in touch.
The figures I gave were those you could have received historically, the future is (of course) a different matter.
I would err on the side of caution using the 4% withdrawal rule for your planning. Anything else is a bonus that may well come your way but there will also be bad years to factor into this.
Have a chat with Nik (nik.burrows@intelligentmoney.com) if you would like to get some actuarial projections put in place to guide you (or just to get some ideas and experienced input).
There are certain unknowns and planning for these in advance is always prudent. Of course keeping on top of thing on a regular basis is just as important.
For example, in the first 5 weeks of this year PH Equity is already 6% up. This would enable you to draw 4% today for a year's worth of base level income and leave 2% invested to cover a year's worth of inflation estimate with the rest of the year still to go for further returns or as a reserve for a bad year.
Cheers
JulianPH said:
I would err on the side of caution using the 4% withdrawal rule for your planning.
JulianDo you mean 'err on the side of caution using the 4% withdrawal rule' to not use 4% and use something lower, or to 'err on the side of caution by using the 4% withdrawal rule'
Thanks
mfmman said:
Julian
Do you mean 'err on the side of caution using the 4% withdrawal rule' to not use 4% and use something lower, or to 'err on the side of caution by using the 4% withdrawal rule'
Thanks
Sorry, that wasn't particularly clear! I meant by using the 4% rule when you start planning and adapting in line with actual market returns.Do you mean 'err on the side of caution using the 4% withdrawal rule' to not use 4% and use something lower, or to 'err on the side of caution by using the 4% withdrawal rule'
Thanks
This could be by taking more or less or building reserves in good years from which to continue to draw an income in bad ones without putting stress on the pot.
This is exactly the sort of thing Nik and the team can help with through effective financial planning.
Cheers
Hi Julian/Nick
TL;DR I’m 32, returning to work in UK and trying to set up a vague life plan for investments worth more than 20p in a computer selected tracker fund with an incorrect risk profile.
Apologies, first post in years of lurking - apparently I registered in 2015 but never posted (embarrassingly), and was certainly reading for years before that. Having read the sticky in full over the years along with many of the advice threads that get posted I’m extremely impressed with what you do and it sounds like you area breath of fresh air for your industry.
On that theme I’m hoping to benefit and obtain some advice! I’ve been meaning to start investing and planning the long term future after I stopped being a perennial student in 2016. Unfortunately I’ve been putting this off ever since I had the idea. In part because we ended up moving to Australia and I wasn’t sure on the legality of opening/contributing to ISAs whilst not being a UK tax resident. The prospect of your GIA option coming live is intriguing but we intend to return permanently in July so will be able to contribute to ISAs in the next tax year anyway.
Brief summary:
- I opened a S&S ISA with Moneyfarm just before I was leaving as a bit of a joke/test to see how it would perform. It has very little money in it and I would like to have added more but didn’t want to fall foul of tax rules whilst in Aus. As of today it’s returned 10.96%, I would guess It’s been open 2 years. Fees were initially free, then 0.7% and are going up to 0.75% shortly. Not huge but I think the performance slightly underwhelming given the year we’ve just had. I think I’m below their ideal minimum investment so perhaps would have done better with different allocations. I also got the risk level selection incorrect when I opened it so only has ~60% equities where I feel I probably need 80 minimum.
- I’ll have some modest cash savings of probably just under 10k when we return, however all of the major life expenses are looming in the next 2 years (wedding + house) and I will need to buy a car. (Ditto for my fiancé although she will have resume use of her car again when she’s back so we can defer replacing that for a while).
- We have our house deposit held separately in lifetime ISA’s (embarrassingly I can’t remember exactly how much, lets call it 20-25k)
- We’ll have ~ 15k AUD each in our Australian Superannuation funds we can apply to withdraw after we leave Australia. My understanding is that there’ll be a 38% penalty for withdrawing. So I’ll probably end up with ~5.5k GBP which by the time it arrives I’m hoping I can add to my investment egg.
- We’re both lucky enough to be returning to our employers DB pensions scheme and as things stand I may well hit the lifetime allowance by the end of my career so additional pension savings whilst attractive (we’ll both be 40% taxpayers within the next 2 years) may end up causing more problems than they solve.
Initial thoughts are they I should probably transfer the Moneyfarm ISA somewhere else: IM/Vanguard/H&L etc. and set up a small direct debit which I can plan to increase in a few years time after we’ve topped up the house deposit/bought a house, bought cars and paid for a wedding. It sounds ludicrous but I think if I don’t start at least something now I’ll wake up in 10 years time with kids, probably planning another house move and having missed out on 10 years of compound interest.
All advice welcome
TL;DR I’m 32, returning to work in UK and trying to set up a vague life plan for investments worth more than 20p in a computer selected tracker fund with an incorrect risk profile.
Apologies, first post in years of lurking - apparently I registered in 2015 but never posted (embarrassingly), and was certainly reading for years before that. Having read the sticky in full over the years along with many of the advice threads that get posted I’m extremely impressed with what you do and it sounds like you area breath of fresh air for your industry.
On that theme I’m hoping to benefit and obtain some advice! I’ve been meaning to start investing and planning the long term future after I stopped being a perennial student in 2016. Unfortunately I’ve been putting this off ever since I had the idea. In part because we ended up moving to Australia and I wasn’t sure on the legality of opening/contributing to ISAs whilst not being a UK tax resident. The prospect of your GIA option coming live is intriguing but we intend to return permanently in July so will be able to contribute to ISAs in the next tax year anyway.
Brief summary:
- I opened a S&S ISA with Moneyfarm just before I was leaving as a bit of a joke/test to see how it would perform. It has very little money in it and I would like to have added more but didn’t want to fall foul of tax rules whilst in Aus. As of today it’s returned 10.96%, I would guess It’s been open 2 years. Fees were initially free, then 0.7% and are going up to 0.75% shortly. Not huge but I think the performance slightly underwhelming given the year we’ve just had. I think I’m below their ideal minimum investment so perhaps would have done better with different allocations. I also got the risk level selection incorrect when I opened it so only has ~60% equities where I feel I probably need 80 minimum.
- I’ll have some modest cash savings of probably just under 10k when we return, however all of the major life expenses are looming in the next 2 years (wedding + house) and I will need to buy a car. (Ditto for my fiancé although she will have resume use of her car again when she’s back so we can defer replacing that for a while).
- We have our house deposit held separately in lifetime ISA’s (embarrassingly I can’t remember exactly how much, lets call it 20-25k)
- We’ll have ~ 15k AUD each in our Australian Superannuation funds we can apply to withdraw after we leave Australia. My understanding is that there’ll be a 38% penalty for withdrawing. So I’ll probably end up with ~5.5k GBP which by the time it arrives I’m hoping I can add to my investment egg.
- We’re both lucky enough to be returning to our employers DB pensions scheme and as things stand I may well hit the lifetime allowance by the end of my career so additional pension savings whilst attractive (we’ll both be 40% taxpayers within the next 2 years) may end up causing more problems than they solve.
Initial thoughts are they I should probably transfer the Moneyfarm ISA somewhere else: IM/Vanguard/H&L etc. and set up a small direct debit which I can plan to increase in a few years time after we’ve topped up the house deposit/bought a house, bought cars and paid for a wedding. It sounds ludicrous but I think if I don’t start at least something now I’ll wake up in 10 years time with kids, probably planning another house move and having missed out on 10 years of compound interest.
All advice welcome
Sauce said:
Lots of very positive things!
Hi Sauce You are at an excellent age to be making such financial planning decisions and my congratulation on your impending wedding!
Thank you for your kind comments. We certainly strive to be very different than our industry norm and I am happy that people are able to see that both here and in practice.
The Moneyfarm return is not to bad to be honest as it will have fallen in the final quarter of 2018 and had to recover from this, so don't beat yourself up over this.
Still, 60% equity exposure at your age is quite conservative and you have correctly identified this. Many others would not have realised this so you are obviously on the right track.
If you may hit the lifetime allowance and your wife-to-be also has a good DB pension scheme then your future retirement looks very healthy indeed.
My initial thoughts when you return to the UK would be to focus on ISA investments (and if you are first time buyers then a Lifetime ISA is a no brainer for your first house deposit) and to always keep in place a cash reserve in the event of the unexpected.
The remaining standard ISA investments could bridge the gap between early retirement and your DB pensions kicking in and over paying your mortgage (for which it is very much worth you speaking with Sarnie here when setting this up).
If kids do come along then this may change your priorities to some extent, but that can be dealt with as part of your ongoing financial planning.
It would be very much worth you both sitting down with Nik (nik.burrows@intelligentmoney.com) when you return to the UK (please don't give him ideas about flying out for a few weeks in Australia to do this!
) and going over everything to put a long-term plan in place and regularly review this as life events and markets change over the years.You appear to be in a good place and well set to cement your ongoing financial security. We would be more than happy to assist you down this path to maximise this position.
Cheers
Julian
I posted this in the Equitable Life thread, but it's probably better placed here...
I have to admit I'm as confused as f
k about my pension status. I've got twenty nine years of self employed NI contributions, a pension with Prudential from when I think I opted out of something when I had a 'proper' job in the late eighties, a pot that I have paid £32 a month into since 1991 with Equitable (now Utmost) and a couple of months contributions to a workplace pension when I had a little flip out in 2018 and packed everything in and got a job elsewhere before I realised what a tit I'd been.
Can I combine all them into one pot? Would that be prudent? Can I up my contributions?
Cheers.
I have to admit I'm as confused as f
k about my pension status. I've got twenty nine years of self employed NI contributions, a pension with Prudential from when I think I opted out of something when I had a 'proper' job in the late eighties, a pot that I have paid £32 a month into since 1991 with Equitable (now Utmost) and a couple of months contributions to a workplace pension when I had a little flip out in 2018 and packed everything in and got a job elsewhere before I realised what a tit I'd been.Can I combine all them into one pot? Would that be prudent? Can I up my contributions?
Cheers.
Sideways Tim said:
I posted this in the Equitable Life thread, but it's probably better placed here...
I have to admit I'm as confused as fk about my pension status. I've got twenty nine years of self employed NI contributions, a pension with Prudential from when I think I opted out of something when I had a 'proper' job in the late eighties, a pot that I have paid £32 a month into since 1991 with Equitable (now Utmost) and a couple of months contributions to a workplace pension when I had a little flip out in 2018 and packed everything in and got a job elsewhere before I realised what a tit I'd been.
Can I combine all them into one pot? Would that be prudent? Can I up my contributions?
Cheers.
Hi TimI have to admit I'm as confused as f
k about my pension status. I've got twenty nine years of self employed NI contributions, a pension with Prudential from when I think I opted out of something when I had a 'proper' job in the late eighties, a pot that I have paid £32 a month into since 1991 with Equitable (now Utmost) and a couple of months contributions to a workplace pension when I had a little flip out in 2018 and packed everything in and got a job elsewhere before I realised what a tit I'd been.Can I combine all them into one pot? Would that be prudent? Can I up my contributions?
Cheers.
Your NI contributions will be for your state pension payments, but the rest can be combined into one pot and you can up your contribution to the maximum you are eligible for and even top up contributions for the previous 3 tax years if you max out your allowance this year.
So there are plenty of options. If you would like someone to go over all of these as they apply to you and put everything into plain English then get in touch with Nik (nik.burrows@intelligentmoney.com) and he will be happy to do this and assist you to get where you want to be.
Also feel free to ask anything else here.
Cheers
Julian
JulianPH said:
Hi Tim
Your NI contributions will be for your state pension payments, but the rest can be combined into one pot and you can up your contribution to the maximum you are eligible for and even top up contributions for the previous 3 tax years if you max out your allowance this year.
So there are plenty of options. If you would like someone to go over all of these as they apply to you and put everything into plain English then get in touch with Nik (nik.burrows@intelligentmoney.com) and he will be happy to do this and assist you to get where you want to be.
Also feel free to ask anything else here.
Cheers
Julian
Cheers. Will do.Your NI contributions will be for your state pension payments, but the rest can be combined into one pot and you can up your contribution to the maximum you are eligible for and even top up contributions for the previous 3 tax years if you max out your allowance this year.
So there are plenty of options. If you would like someone to go over all of these as they apply to you and put everything into plain English then get in touch with Nik (nik.burrows@intelligentmoney.com) and he will be happy to do this and assist you to get where you want to be.
Also feel free to ask anything else here.
Cheers
Julian
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