Podcast Episode Details
Back to Podcast Episodes
Listener Questions - Episode 20
Episode 584
It’s another full show of questions, ranging from assumed growth rates for investments, to Save As You Earn schemes to retirement cash buffers, and much more besides!
Shownotes: https://meaningfulmoney.tv/QA20
01:21 Question 1
Hi to you both.
Absolutely love the podcast and Pete's book. The information in both has made a huge difference to my understanding of what to do with my finances.
My question is about expected returns when investing in equities. If often hear people use 5% growth as a estimate to use when predicting possible future values of an investment.
But from what I can see (and I could be wrong!) The global stock market has averaged around 8-9% over the last 20 years. This obviously makes a huge difference to the total expected value when compared to 5%.
I currently have a DB scheme pension through the fire service, so I do my 'extra' investing through a S+S ISA global index fund with 100% equities which has averaged 8.5% over the last 8 years.
I am happy with a higher risk level as I have the DB pension from the Fire Service.
Am I missing something with my numbers?
Thanks again for all the great information. I have recommended you to many of my friends.
Kind Regards
James W
08:22 Question 2
Hi Pete and Roger,
Thank you so much for your contribution to making the world a better place. Your passion for sharing and educating everyone is inspiring.
I have a question about our Save As You Earn Scheme maturing this year. I'm lucky enough that (at the current price) I'll get a total return of > £20k at maturity in November. Not counting my chickens, but I'd like to plan the most tax efficient way of receiving these funds.
The SAYE provider offers a flexible ISA to receive the shares. Could I transfer enough shares for £20k into the ISA, sell and withdraw enough cash to make space to then transfer the rest of the shares to avoid any CGT?
Alternatively, could I exercise the option in March and partially transfer into an ISA across the tax year end?
Are there any other mechanisms I could use to minimise tax?
Thank you again for all of your hard work.
Priten
15:01 Question 3
Hi Team
Long time listener and YouTube viewer, heck I even watched a video when Pete wore a tie!
Your podcasts have made me change my pension default funds, increase my salary sacrifice (really affects take home pay a lot less than people think!) and generally have confidence in my future. Thank you!
Question: When I do finally decide to retire I'm planning a 1-2 year cash buffer for any market disasters that may happen. But when would you say to use this? The markets always move up and down a bit but should I use the cash buffer if they drop 3%, 5%, 10%? And then if I've taken 1 years worth of income from the buffer how do I rebuild the buffer? For example I'm targeting a pension drawdown of around £45K per year to keep below 40% tax. But if I've just used up the buffer then I'll be taxed 40% on taking out extra to rebuild it, so why bother as any downturn is very likely to be smaller than 40%! Wouldn't it just make sense to take out less in a downturn than get taxed 40% to rebuild a buffer?
Thanks for all the podcasts!
Simon Doig Halifax (but was in Cornwall!)
213:33 Question 4
Hi guys
Podcast question for you please:
"I've been a listener for ages, and so I have started to do the good things you suggest. I had a workplace pension (local gov DB) but now I have AVC's, a SIPP, and an S&S ISA, as well as a savings account and life insurance/ critical illness cover. Thank you.
I am making contributions monthly to my pension and ISA but the gist of my question is, is it worth it if I'm only saving small amounts?
This is the most I feel I can
Published on 1 month, 1 week ago