Listener Questions, Episode 33

Welcome to another show full of questions form you, the audience and hopefully some meaningful questions from Pete & Roger. This week we have questions about paying school fees, becoming a financial adviser, how to invest an inheritance and lots more!

Shownotes: https://meaningfulmoney.tv/QA33 

 

01:15 Question 1

Good morning Pete & Roger, Thank you for a great podcast, been really enjoying it over the years and it's been no end of help for me. My question concerns my grandchild. She was born in America but now lives in the UK, is duel nationality. As grandparents we were hoping to put money aside into a savings account for her. Now obviously we thought the JISA but as she is born in America we can't do that. Is there any advice for how we can save for her in the most tax efficient way for her, conscious that she is quite young. If we can put some money away now regularly, it could build up into a nice little nest egg for her. Also hoping to do this for other grandchildren, not necessarily born in America. Any advice gratefully received. Mike.

05:48 Question 2

Hello Pete & Rog Wow these Q&As just keep delivering incredible value -keep up the great work! I'm 52 and my wife is 43. We're both higher-rate taxpayers contributing to a DB-DC hybrid via salary sacrifice. We'd like to retire together in 12 years (me at 64, my wife at 55—she has a protected pension age). We both have a DB pension and a DC pension. Combined we have emergency fund of £30k in Cash ISA, no S&S ISA.

Observations: - Once both DB & State Pension are in payment pay, planned spending of £60k p.a. is fully covered. - My ability to draw DC within the basic-rate band post-State Pension is limited, as DB 33k p.a. - My wife has much more scope to use her DC tax-efficiently before her DB/State Pension start. - Likely outcome: large residual DC balances if we only withdraw what's needed to spend.

Question: Would it be sensible to draw more from DCs early (using UFPLS at ~15% effective tax) and reinvest the surplus in S&S ISAs? This could: - Lock in withdrawals at basic-rate tax before DB/State Pension restrict allowances - Reduce the chance of paying higher-rate tax later - Diversify across ISAs (which we intentionally lack currently)

Am I letting the "tax tail wag the investment dog," or is this just pragmatic tax-efficient planning?

Cheers, Dunc

 

09:05 Question 3

Hi, Thank you both for your financial wisdom! It has definitely lit a fire under me!

My husband and I (41) would like financial independence at 50. We have received £120k early inheritance gift and also plan to sell 2 rental properties over the next 5 years to reduce commitments (a further approximate £250k post CGT)

We are mortgage free and I have since filled our stocks and shares LISA and ISA, investing in 100% equity low cost global trackers.

Other than investing the remaining in a GIA and transferring to ISAs each year are there any other options to help money grow over the next 9 years.

We may continue to work at 50 but under our terms. We need sufficient to tide us over from 50-57 when we can consider access to Pensions and the LISA at 60. Thanks Amy

12:18 Question 4

Dear Pete & Roger,

Thank you so much for all the work you do on YouTube, on the Website and on the Podcast, it really does make a difference to people's lives and long may it continue!

I'm 36 years of age, and I currently work as an Aircraft Technician, which I somewhat enjoy. However I find the older I get, the harder it is to keep up with the physically demanding nature of the job, and fear this may become more of an issue further down the line. This has prompted me to think about my future employment. Engineering has been my whole life, and my curiosity for learning and my persistent quest for personal development has