tag:blogger.com,1999:blog-2875915890415125655.post7844935065724635529..comments2023-05-18T10:37:34.608+01:00Comments on <a href="http://www.retirementinvestingtoday.com">Retirement Investing Today</a>: Pushing pensions to the limitRetirementInvestingTodayhttp://www.blogger.com/profile/03088383743670046657noreply@blogger.comBlogger30125tag:blogger.com,1999:blog-2875915890415125655.post-29402288639876441932017-04-16T12:41:02.899+01:002017-04-16T12:41:02.899+01:00Hiya RIT - again sorry for another Zombie post - c...Hiya RIT - again sorry for another Zombie post - catching up on past blogs so I can get back to "real time" following. Thanks for posting the link to the PMI article - this is one of the most helpful summaries I've seen. After sacrificing my entire bonus to put into my pension last year, my DC Scheme sent me a summary of pension input amounts and I had to read it 3 times to Prospectorhttps://www.blogger.com/profile/00908257772380515160noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-15950035861688697292017-01-21T16:27:17.732+00:002017-01-21T16:27:17.732+00:00Hi, Have you considered transferring your SIPP to ...Hi, Have you considered transferring your SIPP to a QROPS? This crystalises the value against the LTA, and then you no longer have to worry about the value of your pension exceeding the LTA. Downside is you have to pay for an IFA advice before being allowed to transfer. I have been investing in my SIPP for 13 years (I am 46) and the value exceeded the LTA after Brexit. Prior to Bexit, I had Anonymoushttps://www.blogger.com/profile/10326846118049569173noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-31255905428936351572017-01-13T15:36:07.063+00:002017-01-13T15:36:07.063+00:00Hi RIT,
Am just reviewing my pension situation as...Hi RIT,<br /><br />Am just reviewing my pension situation as the self assessment deadline approaches quickly.<br /><br />Can I get your advise, as am confused about claiming tax relief etc.<br /><br />I was quite late to the SIPP party, despite having legacy pensions from old jobs for years. History below:<br /><br />2013/14 no pension contributions salary circa £50k<br /><br />2014/15 company Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-58234192004344540892017-01-13T13:36:07.735+00:002017-01-13T13:36:07.735+00:00Afiak its still 55, no official raise to 57 (woul...Afiak its still 55, no official raise to 57 (would be interested to see if you link to that is poss? ta) - it was mentioned as consultation but is not policy (yet).PapaJohnhttps://www.blogger.com/profile/16689240088186002896noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-84715297215007093472016-12-16T15:54:33.886+00:002016-12-16T15:54:33.886+00:00I think you may have that the wrong way round, HRT...I think you may have that the wrong way round, HRT payers will be worse off as they can only claim IT relief against mortgage interest at the BRT level. <br /><br />Also, it sounds like you won't be able to fudge wear and tear any more and you won't get to enjoy the reductions in CGT when you get round to selling..<br /><br />take a look at the following for a simple overview:<br /><br />The Rhinohttp://www.thenewrhino.comnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-67957001103778329072016-12-16T12:58:59.932+00:002016-12-16T12:58:59.932+00:00Rhino, the changes to taxation on BTL profits bein...Rhino, the changes to taxation on BTL profits being phased in over the next four years mean a different way of calculating tax liability. Many basic rate taxpayers (from employment) will now be higher rate payers (due to rental income, rather than rental profits, being added to their earned income.)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-47982873922740687192016-12-15T18:29:12.358+00:002016-12-15T18:29:12.358+00:00I agree, the £24k is a worse case scenario. RIT is...I agree, the £24k is a worse case scenario. RIT is very conservative with his projections. Elderly parents yes, but you can fly back and cover care with other family members I did and it worked fine. I Think you need a more open mind! Tim Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-74301634793392669792016-12-15T11:40:57.191+00:002016-12-15T11:40:57.191+00:00We've kept ourselves in good shape but maybe n...We've kept ourselves in good shape but maybe not quite that good. I thought it was a good image as it presents what is possible with FI:<br />- good health (more home cooked healthy food and more time for exercise/physical activity)<br />- a beautiful location that could just about be anywhere in the world<br />- doing what you want when you want<br />- it's the possible domain for RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-69016521298293396282016-12-15T11:03:28.226+00:002016-12-15T11:03:28.226+00:00mmm lentils - you could read some Harry Browne? I&...mmm lentils - you could read some Harry Browne? I'm working through 'How to be free in an unfree world'. I think it would present the appropriate mindset and make its case.<br /><br />Thats all pretty subjective though.<br /><br />A more objective observation is that the old firecalc sims show that there is a good probability RIT could become significantly more prosperous in the The Rhinohttp://www.thenewrhino.comnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-52691010220900607292016-12-15T10:56:11.621+00:002016-12-15T10:56:11.621+00:00haha - yeah I think I would. You've kept yours...haha - yeah I think I would. You've kept yourselves in good shape.<br /><br />Also the penny just dropped with the pen-name! Bravo! (I'm a bit slow on the uptake;)The Rhinohttp://www.thenewrhino.comnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-33158165876791486592016-12-15T10:45:54.700+00:002016-12-15T10:45:54.700+00:00Hi Andrew
Rent was subject to income tax prior to...Hi Andrew<br /><br />Rent was subject to income tax prior to the BTL rule changes. This hasn't changed<br /><br />What has changed is the stamp duty payable on property other than your primary residence and how mortgage interest can be offset against income tax.<br /><br />Maybe that's what you meant?The Rhinohttp://www.thenewrhino.comnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-48917955581697457612016-12-14T13:03:09.623+00:002016-12-14T13:03:09.623+00:00If I said it was would you believe me?If I said it was would you believe me?RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-2767178399895276612016-12-14T12:24:40.516+00:002016-12-14T12:24:40.516+00:00Now is that you and the missus on the front cover?...Now is that you and the missus on the front cover?The Rhinohttp://www.thenewrhino.comnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-72780769477513700862016-12-14T10:38:07.781+00:002016-12-14T10:38:07.781+00:00Hi The Rhino
It's been a very busy few months...Hi The Rhino<br /><br />It's been a very busy few months. The link in the top right sidebar will take readers to the ebook. There is also now a printed version which you need to search Amazon for (same title) and which Amazon suggest could be delivered to a purchaser by the 16 December. The two should link into a single entity within a few days. My plan is to give the full story and RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-54483468801657456112016-12-14T10:13:15.065+00:002016-12-14T10:13:15.065+00:00Wow! RIT the book! Good work
You don't muck a...Wow! RIT the book! Good work<br /><br />You don't muck about do you? Get things done, one after another, very disciplined/determined<br /><br />Whats next? RIT the movie?The Rhinohttp://www.thenewrhino.comnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-17419617829951921252016-12-13T15:23:29.759+00:002016-12-13T15:23:29.759+00:00This is an interesting blog, Robert, but how many ...This is an interesting blog, Robert, but how many people are really realistically prepared to do without a spouse or a family, and leave the country in order to buy somewhere so cheap they can - and in fact must - live on £24k a year forever with no prospect of ever becoming more prosperous?<br /><br />What would be your advice to people with elderly parents? Do you just leave them to fend for Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-82408324506370248372016-12-12T08:01:43.269+00:002016-12-12T08:01:43.269+00:00I am pretty confident that you will get the state ...I am pretty confident that you will get the state pension but it will not be the full amount as I doubt you will have 35 years NI of not contracted out employment.Also your 'tax haven' is per person so I assume your assets and income are shared by 2?<br />TimAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-9409982059862363172016-12-12T07:55:30.796+00:002016-12-12T07:55:30.796+00:00so you should run your pension model to age 75 rat...so you should run your pension model to age 75 rather than 55? The best thing with my SIPP is that I am in control of how much I take as income whilst the balance grows tax free, you may have to withdraw all of the income (divs and growth)each year as you may already be on the £1m LTA limit!<br />TimAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-35277762688638849462016-12-11T12:48:12.398+00:002016-12-11T12:48:12.398+00:00I'm a 45 yr old basic rate taxpayer and have a...I'm a 45 yr old basic rate taxpayer and have always thought that the 20% contribution to any pension savings was a nice little earner.<br /><br />I've just decided to stop paying into my SIPP and make all payments into my Stocks & Shares ISA.<br /><br />I own a couple of flats that make a small amount of income after mortgage costs. Under the new BTL tax rules, where rents will be Andrewnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-32076876391681892932016-12-11T08:58:52.693+00:002016-12-11T08:58:52.693+00:00You are of course correct. Except for me the Stat...You are of course correct. Except for me the State Pension is an insurance policy only (if it goes horribly wrong) and so I don't build it into any FIRE models. If my FIRE works I'm assuming I won't be entitled to it because of some new rule or other. If I do then even with the extra tax I'm still going to be better off than my models predict. It does however make Cyprus even RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-81566055662450504192016-12-11T08:53:39.854+00:002016-12-11T08:53:39.854+00:00Thanks for the clarification Tim. Post duly correc...Thanks for the clarification Tim. Post duly corrected. RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-59686561646574294892016-12-11T08:45:22.440+00:002016-12-11T08:45:22.440+00:00Hi RIT,
Great post as always - and something that...Hi RIT,<br /><br />Great post as always - and something that is close to my heart right now as I am going through similar calculations of where I am and what goes into the pension.<br /><br />I think if you are reasonably well above the cut off for higher rate tax, pension savings make a great deal of sense (especially around the 100k and 150k barriers as well). I recently trimmed my savings intoFIREin' Londonhttp://www.fireinlondon.co.uknoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-24523711934928438432016-12-10T23:02:32.544+00:002016-12-10T23:02:32.544+00:00My modelling includes state pension age-5 as a pos...My modelling includes state pension age-5 as a possible scenario.<br /><br />There is a state pension consultation going on until the end of the year, I'd urge people to comment, especially about maintaining SPA-10. https://www.gov.uk/government/consultations/state-pension-age-independent-review-interim-report-with-questionsvicaragehttps://www.blogger.com/profile/13615013686081830604noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-62715275495538347582016-12-10T21:45:16.496+00:002016-12-10T21:45:16.496+00:00While it's so cheap borrow to fill the gap.While it's so cheap borrow to fill the gap.deariemenoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-6240813276849181062016-12-10T19:26:41.459+00:002016-12-10T19:26:41.459+00:00Thanks for insightful post, keep up the good work....Thanks for insightful post, keep up the good work.<br /><br />The challenge facing many people chasing the early retirement is they actually need two portfolios.<br /><br />You’ve done a good job here walking through the tax advantages of SIPP contributions here, and for when retirees are at or over the recognised retirement age (55 today, 57 in 2028, or whatever the age happens to be should the Slow Dadhttps://www.blogger.com/profile/00740050684344962720noreply@blogger.com