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Hi All. Taking into consideration all the fees and if your pension manager does not do well and your pot is showing a loss, after taking 25% tax free you will pay tax on a loss. HMRC are there to maximize their take not to increase your wealth. I have this healthy reluctance with regards to giving HMRC any of my wealth for incompetent govs to squander. I also like a uncomplicated approach to protecting my wealth. ISAs work at the moment but the future tax situation can change and desperate govs will do what ever it takes to stay afloat. Physical gold Britannias in hand/stored outside the banking system is as good as it gets at present. I must add that gold should not be looked at as an investment for profit and more as a wealth protector. There will be a profit but only when the price suppression is lifted and a true supply and demand market is formed. ATB Speedy
@djwatty / @SAS and @Redirons,
Thanks. To my seemingly increasing pool of ignorance, I shall add 'inability to eloquently express the benefits of a SIPP' (even though writing about that sort of stuff has occasionally been my job) despite essentially getting it.
And I am also glad my original post has sparked such a grown up conversation amongst many of the 'lights' of this board.
Something the botflies haven't been able to argue with. Making here more pleasant
Still maintain that, apart form being part of something special through this board (a bonus not a reason) a GGP shareholding is, all but legally defined, as a stake in a gold mine.
And in a company that knows how to use modern day kit to potentially find others.
And that means on any given day, at any give time, a RNS could pop up which says: " We have an offer for: our stake in Havieron." Or indeed the whole company.
I hope we see it through to first pour. When, as has been said many times before, it would be nice to be able to buy a pure 24 carat, commemorative coin - names on a post card?
With due respect to my mucker Paddy, my suggestion is a 'Bampsy'.
HAGW all
Good luck Macmac - try taking 25% only from your SIPP without having to take the other 75% as a taxable amount - I early retired this year - have you?
Redirons
I don’t agree. You can take 25% of your SIPP tax free without having to take the remaining 75% at the same time. Taking the 75% in small amounts in following years may also be tax free if the income is covered by your personal allowance. But remember the OAP is also taxable.
https://www.kitco.com/news/2021-12-03/Top-10-largest-gold-mines-in-Australia-in-Q3-2021-report.html
This is on the Kitco home page tonight.
Top 10 largest gold mines in Australia in Q3 2021 - report
Look forward to us being on this page after we have sat on our hands for a while.
Sitting on a gold mine will be much more comfortable..
Have a good weekend.
I'll buy you lunch at the £10 party lol lol lol
Gimme - but you still owe me a lunch despite the massive losses I have landed on your back. You know how to get hold of me.
Tig
Hey Tigs, I'm still here lurking and learning.
Been adding every month from 26p down to 14.70, and my average has risen to 5p lol. I have 99.9% faith in the project. I'm holding fast till production. Hope you are well, geeze I'm down £500k on paper but still smiling.
Nicely put DJF!!
@@@ Gimmee the money, - good to see you back in good form . Thought you had dashed off back to the Bahamas to spend all of your ill gotten gains.
And you never replied to your Stag invite. I was going to cancel your membership, despite your elevated connections.
Happy Xmas
Tig
SPOT ON REDIRONS
Re- discussion, about the current s.p and reasons for that. Or lack of it. Just a reminder that the current s.p is irreverent in as much as GGP are not generating an income right now that the mm’s can project an estimate for GGP, based on Ggp expected next years income and profits. That’s the real basis for s.p. Once GGP generates that income and profits. The s.p will increase relative to monies generated, if income falls over a period, profit then falls along with s.p. This share is an investment at least for the next year or two. So no stress, put the shares in a drawer and forget for a while. Time passes too quickly to squander it on worries about the ups and downs on a graph. Imv. There is no other share that has the potential of our mine. After all it’s gold plated.
Hi Gimme - so you are confirming everything I am saying about how accessing monies from your pension fund are treated for tax. If however your pension pot had been higher then you would have paid some income tax on the income over the nil rate band (£12,500 per annum currently)
PS Guys I should have mentioned that none of my comments should be taken as advice and that I was basing all of my comments of monies held in a SIPP (Money Purchase Scheme). Nothing I commented on related to Company Pension Schemes or Final Salary Schemes. Independent Financial Advice should be sought where needed. Good luck all.
Hiya Redirons
I drew a tax free lump sum from my pension 25% of my pot tax free. The balance of my pot I take monthly £1047 which I pay no tax on. As it is £12500 a year which is my yearly tax free allowance.
Five years ago I drew out £30,000 from my pot and invested in GGP. And had to pay tax on that withdrawal in that financial year. As it was above my £12500 allowance.
Hiya Redirons
I drew a tax free lump sum from my pension 25% of my pot tax free. The balance of my pot I take monthly £1047 which I pay no tax on. As it is £12500 a year which is my yearly tax free allowance.
Five years ago I drew out £30,000 from my pot and invested in GGP. And had to pay tax on that withdrawal in that financial year. As it was above my £12500 allowance.
Guys - you cannot access 25% of your fund for tax free cash without having to be subject to income tax on the other 75%. In Gimme’s example you could draw £16,666.67 and be paid 25% tax free (£4,166.67). Then the remaining 75% (£12,500) is taxable but as the 0% tax band allows for the first £12,500 to be paid tax free, no tax would be deducted. However, in Gimme’s example you cannot draw down £25k as tax free cash from the £100k fund and then look to draw down £12,500 p.a. for the next 6 years to avoid paying tax on the 75% (£75k) left in the fund. If you want tax free cash of a certain amount, you have to have the other 75% accountable to income tax. If you only need £16,666.67 per annum income, then happy days as you shouldn’t pay tax on any of it. But if you wanted a decent up front amount of say £25k as tax free cash from your £100k fund then the remaining £75k becomes taxable at the point you ask for the £25k tax free cash. The pension side of it is quite complex but you can minimise the tax you pay through withdrawing smaller amounts - it just depends what you need, what you want and what size your fund grows to courtesy of the terrific performance of GGP. Personally I hope I pay a stack in tax, as it means I am withdrawing fabulous amounts!!! VGLA Greatlanders
I think you should always take the 25% tax free sum ASAP, If you leave it and draw down the balance then you are eating into your tax free pot.But as usual seek independent financial advice .
A bit of contrarian advise here which is why you need to make sure you get correct advise rather than listen to Non professional advisers … ( as much as I hate to have to pay fees ! ) … you should be able to move funds if necccessary to a company that offers flexible drawdown. .. you can take the 25% tax free lump sump and leave the rest invested BUT subsequent drawings will be subject to income tax( unless your overall income is below threshold ) .. the disadvantage of drawing the 25% up front is that if the funds double over the next few years then you no longer have the option to take out any funds tax free . Depends on your circumstance s and what your pot is invested in but might be better to draw a small sum … pay the appropriate tax and let the rest grow … you can the take 25%of the remaining fund tax free at any future point. But of course DYOR . Problem always seem to happen when you decide to move pension providers if the existing one cannot offer flexible drawdown and then you are virtually forced to pay for financial advise even if you know what you are doing!
Do you need to take your 25% straight away or can you take monthly income for a while and take the 25% later?
If your pension pot is 100k you can draw 25k down tax free and leave the other 75k in your pot to grow or take a monthly income from it. If you have no other income you can then draw down 12500 a year from your 75k pot tax free.
Mis understanding me. You can draw your pension say 12500 pa with no tax to pay as below the tax threshold. You only pay tax over that but you have gained in former years the tax breaks from hmrc have you not. Then top up from your isa all tax free to the living wage you need.
Sorry Sani - not that simple with the pension part - you can’t just draw off the 25% tax free element without taking the other 75% as an income. So if you wanted £25k cash, you would have to draw £100k to get your £25k tax free element but then £75k would be treated as taxable income and the tax bands would be worked through until some of it was taxed at the higher rate after exhausting the basic rate. Speedy could add to it tax free from his iSA as you say, but the main tax efficiencies of a pension are on entry (£100k invested in an ISA costs £100k but for a pension for a HRT only costs £60k due to 40% tax relief) but on exit the ISA is much more tax efficient with no taxes to pay whatsoever. I’m off for a lie down now after all this!!!
Speedy. I think best option is pensionin form of a sipp and take full advantage of the tax breaks. However don't put all your eggs in one basket and so have an is as well for investments. That wY you can draw tax free up to your allowance from the pension and top up tx free from the is. Oh and maybe add a bit of physical gold
PS Should have mentioned all investment growth whilst the contributions remain in the pension, grow tax free as well. Then when you do start to draw an income the first 25% up to just over £1m is paid out tax free. The remaining 75% is taxable but a HRT might retire as a Basic Rate Taxpayer so will only pay basic rate tax not higher rate depending on how much is drawn down for income.