Your questions answered Vol 2 - IM Private Clients
Discussion
2Btoo said:
markiii said:
£3600 limit - the 20% tax credit
Sounds good, thanks. Although I still don't quite follow. I ( for example ) have zero income that is deemed relevant by HMRC that can be put into a pension ( such as my SIPP )
HOWEVER , the stupid government, god bless them , has deemed it a good idea that I can add every tax year £3600 to my SIPP and this is applicable for 20% basic tax relief ( keep up here, remember I have no relevant earnings and pay no income tax )
20% of 3600 is 720..... so , I simply put £2800 of my other money into my SIPP and the idiots give me £720 for nothing , funded by others . I typically do this beginning of tax year and they give me the little bonus around June
Pretty good huh
It's not usually quite as good as it sounds though..... Of the 3600, you can take 25% (900) tax free & the other 2700 is taxed at your marginal rate. So if you're a 20% tax payer, you're taxed 540. So your 'free' 720 is then 'only' a free 180.
Once you reach normal retirement age, most people who can afford to be putting 2880 into a SIPP now, are likely to be at least basic rate tax payers - but there are exceptions.
It's still free money for the moment - under current tax rules.
Once you reach normal retirement age, most people who can afford to be putting 2880 into a SIPP now, are likely to be at least basic rate tax payers - but there are exceptions.
It's still free money for the moment - under current tax rules.
Car bon said:
It's not usually quite as good as it sounds though..... Of the 3600, you can take 25% (900) tax free & the other 2700 is taxed at your marginal rate. So if you're a 20% tax payer, you're taxed 540. So your 'free' 720 is then 'only' a free 180.
Once you reach normal retirement age, most people who can afford to be putting 2880 into a SIPP now, are likely to be at least basic rate tax payers - but there are exceptions.
It's still free money for the moment - under current tax rules.
This is a good point to consider(emphasis of 'current' rules) and why, from what I have observed it is worth considering ISA wrappers for higher rate tax payers. Clearly for some that will already be maxed out. It is also worth noting that the free element can also grow via compoundingOnce you reach normal retirement age, most people who can afford to be putting 2880 into a SIPP now, are likely to be at least basic rate tax payers - but there are exceptions.
It's still free money for the moment - under current tax rules.
JulianPH said:
Grey_Area said:
Apologies if this has been covered before, but the PH search function isnt great, and my Google foo appears to run a Null search on the subject.
And now the question, I'm looking at full retirement in around 3 years time, have a pension pot, and an ISA pot.
I'll be taking the ISA pot first most likely after chatting with Nik some time ago, with an intention of taking it down to pretty much zero. Now, is there a method by which I can do this on a regular monthly basis for a set sum per month, without incurring any issues, costs arbitary timescale problems etc?
Take it for given that I'd need 2k/month on the 3rd of each and every month till the funds run dry.
TIA.
Hi Grey_Area, I've just had a look at my own account as I assumed that there would be an 'income payment' option for ISAs (just as with pensions) but I can't see one!And now the question, I'm looking at full retirement in around 3 years time, have a pension pot, and an ISA pot.
I'll be taking the ISA pot first most likely after chatting with Nik some time ago, with an intention of taking it down to pretty much zero. Now, is there a method by which I can do this on a regular monthly basis for a set sum per month, without incurring any issues, costs arbitary timescale problems etc?
Take it for given that I'd need 2k/month on the 3rd of each and every month till the funds run dry.
TIA.
Let me ask the geeks as I must be missing something obvious!
Cheers
Julian
Just checking in to see if there's any update from the tech geeks .
Thanks.
Smci were expected to announce earnings early-they didn’t. So no news = a big sell off. That’s all there is to say. The company raised billions over the quarter to buy more silicon. They’re building 4 new factories that we know of. They are probably the fastest growing business in the S&P and that hasn’t changed.
I think management need to start acting like an sp500 company, being, get their communication straight. They surely knew saying nothing would be an issue. There are reasons why they couldn’t pre announced and that might be tied to them just joining the S&P or a policy change. They could have said something as opposed to nothing. It’s not like they missed guidance, that we do know as they must report that early.
I think management need to start acting like an sp500 company, being, get their communication straight. They surely knew saying nothing would be an issue. There are reasons why they couldn’t pre announced and that might be tied to them just joining the S&P or a policy change. They could have said something as opposed to nothing. It’s not like they missed guidance, that we do know as they must report that early.
AdamIM said:
Smci were expected to announce earnings early-they didn’t. So no news = a big sell off. That’s all there is to say. The company raised billions over the quarter to buy more silicon. They’re building 4 new factories that we know of. They are probably the fastest growing business in the S&P and that hasn’t changed.
I think management need to start acting like an sp500 company, being, get their communication straight. They surely knew saying nothing would be an issue. There are reasons why they couldn’t pre announced and that might be tied to them just joining the S&P or a policy change. They could have said something as opposed to nothing. It’s not like they missed guidance, that we do know as they must report that early.
Thanks Adam. Sounds like a good time to top up this years ISA allowance. I think management need to start acting like an sp500 company, being, get their communication straight. They surely knew saying nothing would be an issue. There are reasons why they couldn’t pre announced and that might be tied to them just joining the S&P or a policy change. They could have said something as opposed to nothing. It’s not like they missed guidance, that we do know as they must report that early.
So was the hit on Nvidia a knockon from the Smci drop or was something else happening there? I thought Nvidia changes would hit the "smaller" AI players but not so much the other way round?
supersport said:
Um world events...
Dow was up 200 yesterday………
t can't go up forever it has to pull back sometimes.Gassing Station | Finance | Top of Page | What's New | My Stuff