Відео

Self employed should pay a full stamp. All work done by these workers should require them giving a receipt for payment. Cash payments without a receipt being given should be a crime of fraud against the state.

there is no inheritance tax on SIPP

Sorry pal , is it me or is all this made so complicated by the Govt. That ordinary working class folk can not understand it so they can be screwed over , by the Govt no matter what they try to do

T.you.sir.v.good.information.t.you.

Crikey so if you took a drip feed cash withdrawal, and you took say 2% of the 25% does the growth of the uncrystallised mean that the next say 2% you take could be worth the same (or possibly more) as the previous 2% you took in the previous extraction? And does that mean the percentage taken could go on and on and on, or does the percentage count start from the initial value at which you started the take? Hope that makes sense!

I'd had enough in my mid 20s! Ha ha! Seriously, like you say it's the stress of the BS that jobs come with that drives most of us nuts. I love the work I do but the paperwork, the deadlines, the management BS, the "just a small worthless cog in a big machine" thing we all have. I do have a creative side hustle that I do which makes a few hundred a month. 8 years ago I started writing a book and it took me 5 years of my spare time but it got so hard that it basically became a second job and killed my passion for my beloved hobby. 3 years it's taken to find my mojo again. So I strongly advise anyone thinking of turning a hobby into an earner during retirement to be very careful what they take on, your hobby can quickly become a millstone around your neck and kill the original purpose of allowing you to relax. My wife and I got into serious debt about 25 years ago and the single thing that got us out of debt was Excel. We logged every penny coming and going, we still do it to this day and I call us "born again misers"! Twice a week my wife tallies up the money so we know our position to within 2-3 days, we have 25 years of records of every penny we've ever had. Having that data really helped us get an idea on "what's enough for retirement?" and we could get a really good idea what we need and what we won't be spending. Get those numbers recorded every month at least and keep tracking, you'll be surprised what you're wasting money on that can be put to better use. You can find countless ready-made budget sheets online for free and Google Sheets is free to use. I'm already planning to take my semi-pro creative hobby full time in retirement, I've been doing it 15 years now and I intend to start charging clients to teach them my skills, make money, get social and be outdoors. I already do talks at clubs every few months and I love public speaking, not something I ever thought I could do but people have said I have such a passion for the subject that it comes alive when I talk ( or as my wife says, "I never shut up about it!" ). My wife owns the registered business that the hobby goes through, it's given her an extra focus in life. She was an accounts assistant by trade until she stopped work when our duaghter was born 20 years ago so she has the skills. She also knits things and sells them online. We play video games even in our 50s as we've both been video gamers since we were kids, we're thinking about joining retiree video game clans when we retire, just for the social aspects! We plan on heading out around the UK and northern Europe so I can do my hobby, get more material and inspriation. Let me put one horror story here. This is honest to god true. My mate at work, his parents and his wife's parents retired at age 55 and they did nothing but watch TV every day, they had no real hobbies or interests and by the age of 70, one was dead, one had disowned the family and two had serious dementia. Within 3 years the two within dementia were dead. They got less than 20 years, never did anything and my mate says that it's such a waste or life. Now only one remains and they have no interest in being part of the family as they think the family wants their money, so they live on their own and hardly ever have any contact. I only put all these here as ideas to others. I'm not the weathiest guy or even the most interesting but if someone as boring and disorganised as me can plan stuff and get some basic retirement plans together, then anyone can do it.

Drop the 5 second intro, it’s annoying to all viewers. Just address the point immediately

We retired with 350k at 62. We are 65. KEY is low expenses which are somewhat regulated. We do not pay for: Water, homeowners insurance, Trash nor any health costs beyond Part B (due to qualifying for Medicaid if needed) No debt, Prop Tax is $330 a mo. here in Northern Calif on the outskirts of a world class ski town called Truckee, CA. Groceries are $1250, Clothing/Hair- $200. Donation $350, Tech/Cell-$200, Transportation- E-Car, E-Bikes & home powered by DIY Solar about 7 months a year.- $800, Utilities- $250, Repairs- $250, Unexpected costs, Travel $200, Chickens $50= $2125 per month haha. Live in a 750 sq foot home on 3 acres w/ a 650 ft barn. We raise chickens for eggs but the compost pile is their main source of food along with fodder we grow. We grow sprouts in jars which is 1/3 of our vegetables. 8 fruit trees. We can/preserve food. Travel-camping 3 weekends a year in our older RV. We enjoy church, bible study, cycling and volunteering. We ride w/ a bike club 3-4x a mo. about 1/2 the yr. Coffee out 1x a week w.friends. Occasional dinner in or out with friends. A Great Life! Expenses are about $3000+ and our Income is $4500. We usually have about $250 leftover each month. At 70, we'll start taking $12k a year out of the IRA. We have newer most everything so nothing will go out anytime soon. Emergency cash fund = 20k. Credits to my FA Dianne Sarah Olson. Life is good

The issue that I have with overpaying the mortgage is that it pays off the mortgage too quickly! Imagine paying it off early and then deciding you would like a mortgage in later life, say to buy another house. As the applicant is older, the lender may easily refuse to lend or make it more short term. Another reason for NOT paying down the mortgage is that buying properties is one of rhe few investments where the bank will leverage/gear up your investment power! For example, with £75,000 you can get a 75% BTL loan-to-value mortgage to buy a £300,000 property. This property can then be let out to provide a rental income to pay the mortgage interest and, hopefully, some profit. So, for me, paying down the mortgage on the first property is a huge opportunity cost since that money can be leveraged towards making a profit. In addition, any inflation reduces rhe real value of rhe debts. In my lifetime, RPI or CPI figures have only extremely rarely gone below zero.

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

People invest in the snp500 and global funds because over time they have grown more than inflation. Is the fact now most countries in the world have a declining birthrate below 2 children on average an issue for the world investments keeping on growing?

I don't understand the models, assuming the same income levels for the duration of retirement. Early retirees will be spending more, fit and healthy, long awaited world trips, hobby toys etc. So spending will typically be higher in your 60s than in your mid to late 70s. Later retirement is pretty binary, but typically very low spend due to ill health, lack of mobility etc. But the catch is , care and health care costs for a minority, typically selling houses to pay for final care costs etc. I don't think so many 90 year olds are worried about their finances or pleasing the bank managers. They just want to die if they are in poor health.

Companies can keep paying into an individual's pension beyond 75 years of age for the individual. The company is not limited by the nett relevant earnings rule. A question: is the amount of unused relief available for use by the limited company employer by carry forward the difference between the Annual Allowance less what pension contributions were paid in total in that year? Or is it limited to what relief can be carried forward by the individual? I strongly suspect the former, but should like confirmation. Thanks in advance!

Thanks 😊

Thanks George, for a DB scheme are the guaranteed yearly increases post retirement only if paid out of an annuity or do they still apply via a drawdown provider?

Having aegon issues i understand your frustration . Question for you if i could, im 55 this year and have 36/37 years ni contributions so far, do the 35 years contributions need to be the 35 years leading up to retirement. Say if im ill before retirement for a few years and dont pay ni as i hit retirement age but still have the cumulative 35 years ni, am i still elegible for it, or do the years i missed payments come off my total years paid? Thankyou.

The video that made me subscribe 👍

Could you do a video for people with a side hustle? So you are paye (40% tax bracket) and make like 5k in side hustle. How can i put 5k into my pension without a tax bill or at least reduced

I'll give this warning to people who are money mad, don't plan very carefully and don't forget to live your life 'cos money aint' everything. I religiously paid 20% minimum take home into pensions since I was 19 and I've worked as a well paid IT techie these past 30+ years. I had a panic when I was mid 30s and I ramped up our savings to 35% every month minimum and we set the mortgage on 10 years to clear it as fast as possible. However to do this we could only afford camping holidays, we didn't buy any new clothes unless we had to, we never ate out, hardly ever took the kids to fun days out instead we just did free days out as much as could, "born again misers" is how I describe us. It's now so ingrained that we question every tiny expense right down to just getting £20 petrol in the car. My wife became registered disabled in the last couple of years due to onset of severe arthiritis and she had to give up work in her late 40s. We've now got more than enough in the pensions for me to retire when I'm 58, we'll be almost in that PLSA comfortable zone but there's a kicker. We have plenty of money but 'cos my wife is disabled we can no longer do half the things we were planning to do in retirement. We sacrificed a lot of things simply to get money to be secure in future, a future it now seems will be very different indeed and with more limited choices. I'm not bitter at all as my wife have had some amazing times but things didn't turn out as we wanted. My advice is to find a good balance between safeguarding your finanical future and still living a full life. Be careful what you sacrifice 'cos as the bumper sticker says, "Shit happens!". The lesson from all this is that no one is average, people do things, they plan stuff, it's not what some people would do, other it works, it's all a huge mess of unique ways of getting through life, just be mindful that money isn't everything, sometimes time is the most precious thing you have and you need to find balance in your life.

Thank you so much mate, very helpful

Great vid, now on the hybrid approach. For many years, it was no overpayments capabilities. Now I have got some emergency funds, got much better pension contributions, and am paid enough to overpay. My aims were clear, reduce the mtg term to finish before retirement, bring mtg payments to a nice %age of salary which is my biggest driver, bring down the LTV to get best rates when remortgaging. I know don't invest enough but am doing that now. The tricky thing is how to allocate the spare cash as I agree that investing more and overpay less should help in the long run but I hope it all works out

Love the lighting, mellow yet vivid . On a separate point, would love to find someone who understands additional pension contributions to Armed Forces pension, tricky finding 'financial advice' , ppl on!I want to repeat generic comments and say tax implications are for 6 figure officers and military doctors/lawyers

Pension Carry Forward Calculators are available online. Just input details of your pay (relevant earnings) and pension contributions, not forgetting your employer's, for this and the previous 3 years and it will work out how more more you can pay in, up until the end of the current tax year.

Can we have average pension per wage bracket? I've never ever found it anywhere. I was always curious about having the stats like you presented but cross-referenced with earnings. So, someone on from £50k to £200k what is the average pension between that range. That would be more useful. The average is always skewed by the upper and lower. I want to know what is typical someone in my wage bracket.

Always a lot more complex in practice. I "retired" at 56 with a DB pension which covers ~45% of monthly spending requirements , at 60 I'll have another DB (now covering 60% of spending requirements) and in the mean time I'm topping up from a DC pension pot till I get to 67 and receive the full state pension. I'm keeping some DC in reserve and kept some lump sum back for bucket list holidays - the lump sum monies are earning tax free dividend income in my ISA

I'm a 42-year-old QA Specialist at Confluera, earning £80,000 annually. While I have a retirement account, I'm eager to explore short-term investment opportunities before transitioning to part-time work in the coming years.

Don’t forget they could change the rules and remove the tax free cash

very interesting video bud. My wife is a lot younger than me(14 years). i am planning to retire in 10-15 years, so should have a semi decent pot assuming nothing untoward happens between now and then :)

Clarification: it is APPROXIMATELY 5.8%pa, and precisely 1% for every 9 week and not the other way around as stated very early in the video.

How about if one is paying close to 30 grand per year just on income tax and NI ?What would be a reasonable pension contribution per year especilly when one is late to the party?

Hi George, Thx for this illustration. Would the same calculations apply if John was in a defined benefit scheme,Pls? Also, What's the impact of the State Pension if considered in the calculation & its effect on the effective tax rate,pls?

My view of it is yes, you will want to enjoy a decent income if you retire 60-70. You hopefully will be mortgage free and good enough health,But as you get older you wont be able to spend a lot of money because you wont have the energy to travel far etc.

The Government must increase the Base Rate to £18,000 to give all the lower paid extra some help.

Are we absolutely certain that "The first £1000 of dividend income is taxed at 0%, regardless of how much income you earn"? If you're a higher rate tax payer and then take £1000 dividend on top, does that not eat up more personal allowance and push another £1000 into 40% tax at the top end? :S

I want equivelent of 2k a month

Great video. I slap in £60k each year into my pension since the change (salary sacrifice). From a net point of view I "lost" around just £2,200 out of my wage and in my pension drops £5k each month through employer contribs, NI and tax savings. To be clear, I am quite old and was late to the pension party so I need to do this. Save into a pension kids!

I spent about a year and a half (elapsed time) to consolidate 5 personal pension policies and a directors scheme into 2 SIPPs.. I then spent about 1 a year and a half (elapsed time) ensuring that my wife's NI contributions for the state pension were topped up to take account of her years as a carer bringing up our two children and then paying enough voluntary contributions for her to qualify for a full state pension. Then I embarked on a journey to pay enough voluntary contributions to qualify (in 3 years time) for a full state pension. This also took over a year (elapsed time) including many hours on the phone listening to music carefully selected by DWP. My conclusion is that pension companies are rewarded for clinging on to our money through high monthly management fees). Eg They ask the question have you had a session with Pension Wise? If you reply Yes, then a letter arrives a week later in the post demanding to know the date of the session with Pension Wise = they hold on to my money for another two weeks minimum and continue to receive their management fee for two additional weeks. I want to highlight Utmost; and Phoenix Group as being particularly skilled at delaying pension transfers!!! AJ Bell, Aviva, and Freetrade were far quicker. Indeed AJ Bell were marvellous when handing my request to cash in a small pot pension.. Meanwhile I have found it very hard to get useful answers from DWP about voluntary contributions and many aspects of the state pension eg they no useful information on the detail of deferring the state pension (admittedly normally a bad idea for most people). Even now, my wife is receiving less than a full state pension, when she should be receiving the full state pension plus about 2% (Im still waiting for a response). Private pensions companies must not be allowed to claim a their fund management fee from two months after a policy holder communicates a decision to start transferring a pension. No employee of a pension company should be allowed to use the words "in specie" with a member of the public unless the employee has a qualification in Latin!!!!!! There should be far more information available about how the state pensions work available on the government website.

Love the video, thank you George

The ISA now changed rules

Interesting points. In theory I should have retired 2 months ago, 10 days before my replacement quits. I'm staying on 3 days a week whilst the solution is found. I could have retired a few years ago but have always thought it right to work to your state retirement age. I guess I like the work and it's social environment too much. I'm sure I'll be leaving soon but 3-4 months of work a year will suit me, certainly don't need the money. Individual attitudes and expectations are as important.

Thank you.

I'm debt free, and may not be able to retire until Medicare simply because 0bamacare destroyed affordable healthcare for all but the very richest and very poorest of society. Those with means in the middle won't be able to afford healthcare outside of an employer. What terrifies me now is losing my job at over fifty years-old and never working again. As a highly paid STEM worker, the trend I've seen for the last ten years is companies no longer hiring people over the age of thirty anymore. Even our most senior engineers, retiring with 30-40+ years of experience are being replaced with 25 year-old kids, fresh out of school, with 3 years experience max, just because they are cheap. I brought my manager some resumes from very seasoned, very good engineers who were laid off back in 2008's financial crash. My manager showed me the stack of resumes he was allowed to choose from, filtered by and provided by HR. All were under thirty with very little work experience, not a single older worker with a decade or more of experience in the field. Simply, because the young are cheap and experience costs. That observation was the main driver in paying off my mortgage seventeen years early. Forgoing the luxuries of a high salary and just hammering the mortgage principal down to zero. At this point, I still explore the ability to retire early but that will involve maximizing my cash on hand while minimizing my income to get the largest 0bamacare subsidy possible to pay for healthcare. Luckily, 0bamacare is only income tested and not means tested like Medicaid is, at least for now. I'm lucky as far as expectations in retirement. I travelled when I was younger, don't have extravagant tastes since I was used to sacrificing all those years. I think I'll have a very good retirement partaking in my low cost hobbies, and living cheaply because of it. Healthcare costs are the only possible barrier to that now.

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $110k and in the first 2 months , my portfolio was reading $294,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

I don't understand the whole paying tax on your pension thing. So lets suppose you have a pension pot of £4million. I'm going to go to a bank and borrow against that (there are special loans for this) that will typically let me borrow 50-70% of my portfolio. So instead of paying 45% tax I pay about 5% loan interest. Why would I ever touch the principal. I borrow against it, pay next to nothing in interest as it is a secured loan and use the money to buy businesses that bring me an income that is not a PAYE type 45% salary. Am I missing something? No one mentions this but I feel like its the only way to draw down on a large pension. Pay interest! Not Tax!

Great video that I can really relate to. I'm (nearly) 57 and 2 years ago I agreed with my wife that we would have a plan that I would retire at (nearly) 60. So 3 years to go. I have fallen foul of several of the problems you describe. I once tried to transfer the SERPS opt-out from NPI (no longer exists) to Hargreaves Lansdown and NPI sent the pot by cheque (£17k in about 2010) to HL and the cheque never arrived. The cheque was "paid in" but not by HL. I never found out where the cheque was sent but it took 6 months to get the money back. For many years I had money in the "Default Fund" and it grew by hardly anything for a decade. For many years I paid less than the annual £40k despite paying £7k into an ISA each year. I lost a lot of money in Bond Funds following the Truss budget. These days I'm a bit more streetwise and many of these problems are now sorted. One issue I still worry about is the wisdom of drawing money out of my ISA to pay into my SIPP (to use the full £60k annual limit). With company contributions I pay about £25k/year into my SIPP and last year I paid a about £60k (gross) into my pension to fully use that year and the previous 3 years allowance. This year I'm wondering whether I should pay the £35k (gross) into my SIPP with money from my ISA. The issue I have is that I plan to pay off my mortgage in a few years and this is simpler to comprehend with ISA money that SIPP Tax Free Lump sum money. I would like to "make 2024 the year I retire", but this year I have 1 child starting university and next year I will have 2 more and so that is going to cost me about £6000 per year for 9 student years (round that up to £60k) over the next 4 years. Maybe I'll be able to retire when I'm 61 !!

Hey Principles Personal Finance , very good video . I can do better editing in your videos which can help you to get more engagement in your videos . Pls lmk what do you think ?

Wonderful page, always look forward to your content, thank you so much. 🫡🫡🫡

I went and got log ins and online access for all of my pensions a couple of years ago. It means I have updated addresses and contact details, and know the current value very quickly, and can set/tweak the beneficiaries very simply (EXCEPT YOU AEGON, luckily this one is under 20% of the total pot). I would like to transfer the Aegon into a SIPP but have been put off by worries it will just take forever with loads of roadblocks.

Thanks for the information, How much do you charge % in terms of a pension pot or finance porfolio and yearly costs on going. Reason I ask ask this could have an impact on someones retirement fund - understand the pro advise and the software you use and you have to make a living from this. Can you also tell me the advise as in what you charge for additional advise when that is needed, is there more cost for this, thanks

I’m dropping at 46 seconds. You’re like a car for sale sign that doesn’t state the price.