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Thread: CETV of £1.3m

  1. #1
    Master Skyman's Avatar
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    CETV of £1.3m

    What would you do?

  2. #2
    Master -Ally-'s Avatar
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    Shout about it online, obvs.


  3. #3
    Master Skyman's Avatar
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    Quote Originally Posted by -Ally- View Post
    Shout about it online, obvs.

    No, that was the third thing on my list. Keep up.

  4. #4
    Master amnesia's Avatar
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    How close to retirement are you ?

    Sent from my ONEPLUS 5

  5. #5
    Master Skyman's Avatar
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    Not working now, at 54.

  6. #6
    Craftsman
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    Quote Originally Posted by Skyman View Post
    What would you do?
    Start another willy waving thread.

  7. #7
    Master Skyman's Avatar
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    Quote Originally Posted by CaptainSlow View Post
    Start another willy waving thread.
    Nah, this one will do.🌹

  8. #8
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    Quote Originally Posted by Skyman View Post
    What would you do?
    Hookers and cocaine probably.

  9. #9
    Master MFB Scotland's Avatar
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    Quote Originally Posted by -Ally- View Post
    Shout about it online, obvs.

    haha

  10. #10
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    Quote Originally Posted by anz3001 View Post
    Hookers and cocaine probably.
    Yeah and waste the rest

  11. #11
    Master Skyman's Avatar
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    Quote Originally Posted by anz3001 View Post
    Hookers and cocaine probably.
    Ahead of you.😜

  12. #12
    What does CETV mean?

  13. #13
    Craftsman
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    Quote Originally Posted by eagletower View Post
    What does CETV mean?
    Cash transfer value of your pension.

  14. #14
    Quote Originally Posted by Zolawinston View Post
    Cash transfer value of your pension.
    Thanks! Had no idea!

  15. #15
    Left mine in the final salary scheme
    Happy with the known quantity so to speak
    Thought about it for 5 Mins though

  16. #16
    Master Skyman's Avatar
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    To be serious for a minute. My FSPS would only survive me by my spouse, being 50% of my entitlement for her lifetime. After that, nothing to my two children. I am looking for better future value than that. £1.3m goes a long way, especially when I have no need of the income for 5/6 years.
    Last edited by Skyman; 13th March 2018 at 23:16.

  17. #17
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    Quote Originally Posted by Skyman View Post
    To be serious for a minute. My FSPS would only survive me by my spouse, being 50% of my entitlement for her lifetime. After that, nothing to my two children. I am looking for better future value than that.
    Isn't that one of the advantages of taking the transfer value and putting it into a SIPP - it can be passed on (whatever is left after the hookers, cocaine and other vices you've acquired) - so you can leave a legacy?

  18. #18
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    Not quite that much but I transferred mine.
    You will know itís over the LTA but a nice problem to have!

  19. #19
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    Quote Originally Posted by bambam View Post
    Isn't that one of the advantages of taking the transfer value and putting it into a SIPP - it can be passed on (whatever is left after the hookers, cocaine and other vices you've acquired) - so you can leave a legacy?
    Exactement.

  20. #20
    Master
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    Quote Originally Posted by Skyman View Post
    Exactement.
    You know what to do then...plus at 55 you can take some of it anyway.

  21. #21
    Really depends on the estimated regular payments. But... Personally, I'd take the money and possibly into a SIPP (take the max tax free lump some) and then buy some rental property and a few other assets classes and manage my investments personally.
    It's just a matter of time...

  22. #22
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    It's a tough choice. Some of the benefits of "taking" the cash already mentioned.

    Ultimately it's a question of your attitude to risk and your other resources/income streams.

    Have you done the getting financial advice bit? How long is your quote valid for?

  23. #23
    Master Skyman's Avatar
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    Quote Originally Posted by David_D View Post
    It's a tough choice. Some of the benefits of "taking" the cash already mentioned.

    Ultimately it's a question of your attitude to risk and your other resources/income streams.

    Have you done the getting financial advice bit? How long is your quote valid for?
    I have an IFA, whom I have known for a good while, on the case. To add to the mix, my wife has a similar pension entitlement at c. £600k in CETV terms. Ultimate goal is to have both children in their own wholly-owned properties at year end. Then, job done.
    We have quotes open for three months.

  24. #24
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    Quote Originally Posted by Skyman View Post
    I have an IFA, whom I have known for a good while, on the case. To add to the mix, my wife has a similar pension entitlement at c. £600k in CETV terms.
    Good stuff - it's just you have to get the advice before you press the button and it can take time if you are going from a standing start.

    So is the plan to take the tax-free cash to fund the houses?

  25. #25
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    Hire some bodyguards - we know where you live and how much you have...

    I thought CETV was a TV station - like a premiership one - started thinking Chelsea TV, then Charlton...

  26. #26
    Quote Originally Posted by Skyman View Post
    To be serious for a minute. My FSPS would only survive me by my spouse, being 50% of my entitlement for her lifetime. After that, nothing to my two children. I am looking for better future value than that. £1.3m goes a long way, especially when I have no need of the income for 5/6 years.
    Fair enough... I have no kids
    I suppose that Iím also a bit risk averse when it comes to banks and big finance institutions
    When I got the quote the payments werenít never ending either, which left me wondering what if I lived longer than 88-90 or whenever it was.

  27. #27
    Master
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    Just as an aside, everyone always says take the tax free cash (as mentioned on here as well). Why?

    If you need it then yes take it. However more and more people are using other assets to use money first nowadays (ISA's et al) because whilst its still in your pension, its outside your estate for IHT purposes (changes at 75) so I would run through things with your FA to work out where's best to utilise funds from. Also depends whether there's an IHT issue in the first place, which I would assume there is in this case. More people are using pensions for IHT planning now than ever before, which is probably ones of the reasons why the lifetime allowance has been reduced so it's capped.

  28. #28
    Master
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    Just as an aside, everyone always says take the tax free cash (as mentioned on here as well). Why?

    If you need it then yes take it. However more and more people are using other assets to use money first nowadays (ISA's et al) because whilst its still in your pension, its outside your estate for IHT purposes (changes at 75) so I would run through things with your FA to work out where's best to utilise funds from. Also depends whether there's an IHT issue in the first place, which I would assume there is in this case. More people are using pensions for IHT planning now than ever before, which is probably ones of the reasons why the lifetime allowance has been reduced so it's capped.

  29. #29
    Master
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    What is the lifetime allowance these days? I know that I'm nowhere near it!

  30. #30
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    Quote Originally Posted by Skyman View Post
    What would you do?
    Would need more information before any hope of a serious reply (assuming you were after one).

    How much pension would you be giving up in your DB scheme? What other assets (including other pensions) do you have? What other sources of income do you have (are you still working or retired)? And so on.

    I know you say that your DB pension dies with you (and your wife) but is that a phrase you want to be reflecting on with regret when you're dancing the funky chicken on your 75th wedding anniversary?

  31. #31
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    Quote Originally Posted by bambam View Post
    What is the lifetime allowance these days? I know that I'm nowhere near it!
    LTA is £1.0M at the moment, going up roughly in line with inflation to £1.03M in April, and expected to continue to rise in inflation in future years.

    That's another factor for the OP - DB pensions are treated more generously for LTA purposes than DC pensions. That £1.3M DC pot would incur a tax charge on the excess over the LTA. I would guess the DB pension it reflects is probably less than £50k pa which would be valued at less than £1M so wouldn't incur a tax charge.

  32. #32
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    Quote Originally Posted by Skyman View Post
    What would you do?
    I suppose Iíd fire most of the staff, pare my outgoings down to the bare minimum and live as frugal an existence as is possible with so little. YMMV.

  33. #33
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    Can you please adopt me...

  34. #34
    Another reason to take the Tax free part now is to reduce you're tax liability on LTA. Although you would then pay tax on what you earned if its invested
    outside you're pension pot depending on how you do it.

    Been going through this for last few months and been presented with about 15 different scenarios each time about 15 pages long, started to get number blindness.

  35. #35
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    Quote Originally Posted by TBKBABAB View Post
    Another reason to take the Tax free part now is to reduce you're tax liability on LTA.
    How? Your tax liability is on everything over £1m, the max tax free cash you can take is £250000 so in the OPís case there is a potential tax liability on £300000 when it is crystallised.

    My intention is to take the tax free cash on a monthly basis over a number of years.

  36. #36
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    Quote Originally Posted by craig1912 View Post
    How? Your tax liability is on everything over £1m, the max tax free cash you can take is £250000 so in the OPís case there is a potential tax liability on £300000 when it is crystallised.

    My intention is to take the tax free cash on a monthly basis over a number of years.
    If it continues to grow and is then crystallised.

  37. #37
    Quote Originally Posted by Devonian View Post
    If it continues to grow and is then crystallised.
    Exactly

  38. #38
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    Quote Originally Posted by Devonian View Post
    If it continues to grow and is then crystallised.
    Not sure I understand- to take £250k in tax free cash it comes out of the LTA so the OP then still has a potential liability on the £300k

  39. #39
    Quote Originally Posted by craig1912 View Post
    Not sure I understand- to take £250k in tax free cash it comes out of the LTA so the OP then still has a potential liability on the £300k
    But if the £250k is left in the Pot for 10 years it would increase to say £350k increasing tax Liability by £100k

  40. #40
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    Quote Originally Posted by TBKBABAB View Post
    But if the £250k is left in the Pot for 10 years it would increase to say £350k increasing tax Liability by £100k
    yep but he can still take £250k tax free and yes he has an extra tax liability but still better off overall. I do accept that he may be better taking it and depending how itís invested have less tax to pay but there arenít many places he could get tax free growth (Isas but only investing £20k) a year.

    By taking it gradually as ďincomeĒ I can mitigate income tax. So say I need £36k pa to live- take £12k as income and fund the other £24 k from TFC and therefore no tax to pay and existing money grows (or not!) tax free.

    I accept everyoneís circumstances are different but Iím looking at the latter option as LTA is likely to increase each year, tax isnít payable until I crystallise in excess of £1m (or death or age 75) and the market will go down at some stage (so potentially could crystallise all the fund and pay no LTA.

    Choice, choices and more choices

  41. #41
    Quote Originally Posted by craig1912 View Post
    yep but he can still take £250k tax free and yes he has an extra tax liability but still better off overall. I do accept that he may be better taking it and depending how it’s invested have less tax to pay but there aren’t many places he could get tax free growth (Isas but only investing £20k) a year.

    By taking it gradually as “income” I can mitigate income tax. So say I need £36k pa to live- take £12k as income and fund the other £24 k from TFC and therefore no tax to pay and existing money grows (or not!) tax free.

    I accept everyone’s circumstances are different but I’m looking at the latter option as LTA is likely to increase each year, tax isn’t payable until I crystallise in excess of £1m (or death or age 75) and the market will go down at some stage (so potentially could crystallise all the fund and pay no LTA.

    Choice, choices and more choices
    Yes it does depend on you’re circumstances and there are lots of ways to look at it but I would guess with £1.3m then 36k pa probably won’t be that interesting. If you are looking to have an income of say 65k you can limit what you take as drawdown to 45k to keep within 20% tax band and take the additional 20k from the tax free lumpsum you have already taken and still reduce your liability on LTA.

    OP is also lucky that his wife also has decent CETV as can similarly try and keep within 20% tax band,
    it makes quite a difference if while employed you were paying higher rate tax.
    Last edited by TBKBABAB; 14th March 2018 at 21:55.

  42. #42
    Quote Originally Posted by Skyman View Post
    What would you do?
    I'd ask someone who knows what they're talking about and refrain from asking people who don't, just to draw attention to how well off I am. That's what I did anyway.

  43. #43
    Master
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    Is your penis really so tiny that you need to big yourself up to strangers on an internet forum about how rich you are. What a sad git.

  44. #44
    Grand Master
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    Quote Originally Posted by Cynar View Post
    Is your penis really so tiny that you need to big yourself up to strangers on an internet forum about how rich you are. What a sad git.
    ouch!!!!!! That's gotta sting

  45. #45
    Master Skyman's Avatar
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    Quote Originally Posted by Cynar View Post
    Is your penis really so tiny that you need to big yourself up to strangers on an internet forum about how rich you are. What a sad git.
    Are you really that insecure? A serious question prompts such a response.

  46. #46
    Master Skyman's Avatar
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    Quote Originally Posted by Jdh1 View Post
    I'd ask someone who knows what they're talking about and refrain from asking people who don't, just to draw attention to how well off I am. That's what I did anyway.
    Well done. But, we all have to start somewhere. I am glad you are well off.

    - - - Updated - - -

    Quote Originally Posted by seadog1408 View Post
    ouch!!!!!! That's gotta sting
    Not at all diver boy.

  47. #47
    Master
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    Move to a country where they donít tax foreign pensions income....

  48. #48
    Grand Master
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    Quote Originally Posted by Skyman View Post
    - - - Updated - - -


    Not at all diver boy.
    Defo a nerve touched

  49. #49
    Quote Originally Posted by Jdh1 View Post
    I'd ask someone who knows what they're talking about and refrain from asking people who don't, just to draw attention to how well off I am. That's what I did anyway.
    How do you know people replying don’t know what they are talking about?

    I wouldn’t suggest taking anyones replies here as gospel on something like this but think
    its interesting to see other people’s experiences and opinions in addition to professional
    advice.

  50. #50
    Master Skyman's Avatar
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    Quote Originally Posted by seadog1408 View Post
    Defo a nerve touched
    Purile. If you own a dictionary, check it out dog boy.

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