Credit deflation and the reflation cycle to come (part 3)

[DurhamBorn]

48 minutes ago, THE SOUP DRAGON said:

Could you kindly explain how this is done, the personal allowance is £12,570 how is the remaining £4.130 extracted? I'm well on top of maximising the contributions both max taxable salary and the annual non earning partners £720 Brucie Bonus from a £2,880 contribution.  Got to start learning the best methods on how to repatriate it all when the time comes.

Uncrystallised funds pension lump sum (UFPLS)

£12500 tax allowance the other £4100 the 25% tax free part.One week before state pension age go into full drawdown and withdraw the total 25% lump sum and invest it in and ISA.55 to 67 are the years you withdraw under UFPLS instead of drawdown.

[DurhamBorn]

41 minutes ago, CannonFodder said:

You only get taxed on 75% . 25% is tax free. 12,570 is the allowance for the 75% that is taxed.

Thats right,but needs to be done as an UFPLS and not go into full drawdown.Far better to go into full drawdown the week before you hit state pension age,unless you have a big final salary pension that kicks in sooner.Nodody should work past 55 if they plan right,55 to 67 should be used to extract your pension tax free.

[nirvana]

10 hours ago, Loki said:

I know, it's fantastic ain't it? 

well only if you're short surely Warren?

And then when r u buying back in?

Problem with 'crashing markets' is the laws of unintended consequences when they take other things down with em..

anyway, tag me when you buy back in......tis an interesting game for sure, ya?

Actually forget the crash, 2-3% moves in a day aren't really a crash anymore lol but it's an eye opener to how the 'money men' are making even more megabucks in v.short timescales.......I'll continue to try and follow the trails left by the sneaky cunts lol

[CannonFodder]

57 I think now for me

Another forum i m on say HL sipp is viewed by HL as not needing to stay at 55 which is a shame.

There was a post of who was and who wasnt keeping sipps for existing customers to 55.

i.m guessing you slipped the net due to age

[MrXxxx]

14 hours ago, Castlevania said:

They’re tax free. You can with HL set up your ISA so that all dividends are paid out into a bank account.

DB’s cunning plan is to then take those dividends and pay them into a SIPP against your income allowance and thus get a 25% uplift by having the effective income tax added back i.e. receive £1,000 in dividends in your ISA. Have this paid out into a bank account. Pay into a SIPP and get a £250 top up.

Thanks @Castlevaniafor the explanation ...perhaps I am being a bit 'dense' but if they are tax free earnings how can you claim the tax back on them?..unless of course this is a loop hole that hasn't been 'fixed' yet

NOTE: Now understand [see below] but still seems incredible that you can get tax back from untaxed income!

[MrXxxx]

11 hours ago, DurhamBorn said:

They are tax free,but if you then take them out and put the money into a SIPP you then get 20% free added by the government up to your taxable earnings amount.My partner can take out £16700 a year tax free from 55 to 68 so is stuffing everything she can in her SIPP to get all the tax relief because she will get it all back out tax free.

A £1000 divi from BAT in your ISA would buy £1000 more BAT shares,transfer that £1000 out into your bank,then pay it into your SIPP the government adds £250 so in your SIPP you can now buy £1250 worth of BAT.

Thanks @DB...I understand your first bit, as that is exactly what I plan to do i.e. drawdown pension by personal annual income tax allowance and 25% tax free pension allowance, but I didn't realize the second was possible...seemed too god to be true, obviously not so I will need to investigate further.

[MrXxxx]

11 hours ago, nirvana said:

ok then what's his login when the FED are on the brink of tightening and everything appears to be turning to shit with the latest convid scariant? ie massive china supply issues incoming

edit: why the fuck did I say 'login'? must be bedtime lol

The FED will start and then 'choke'? ..they have previous form of this i.e. Taper tantrum.

[MrXxxx]

8 hours ago, THE SOUP DRAGON said:

Could you kindly explain how this is done, the personal allowance is £12,570 how is the remaining £4.130 extracted? I'm well on top of maximising the contributions both max taxable salary and the annual non earning partners £720 Brucie Bonus from a £2,880 contribution.  Got to start learning the best methods on how to repatriate it all when the time comes.

There are a number of good threads on this that a number of Dosbodders contributed to...I learnt a lot, so may be worth rejuvenating them?...anyway, putting them here in one place so easy to find:

https://www.dosbods.co.uk/topic/15755-pension-question/?tab=comments#comment-1071838

https://www.dosbods.co.uk/topic/14900-retire-early-optimum-route-to-zerolowest-tax-and-earliest-date/page/4/?tab=comments#comment-1048067

https://www.dosbods.co.uk/topic/15877-dc-pensions-investment-pathways-from-feb-2021/

https://www.dosbods.co.uk/topic/10911-pension-relief-personal-contribution/

https://www.dosbods.co.uk/topic/9509-pensions-annuities-and-drawdown/

https://www.dosbods.co.uk/topic/6297-pensions-sipp-tax-avoidance/#comments

 

[kibuc]

14 hours ago, Errol said:

Big purchase for Endeavour Silver:

 

 

500moz at 99g/t seems like a massive bet that silver will fly. Not sure if it's economically mineable at current prices, but add $10 to the spot and you're suddenly printing money.

[DurhamBorn]

1 hour ago, CannonFodder said:

57 I think now for me

Another forum i m on say HL sipp is viewed by HL as not needing to stay at 55 which is a shame.

There was a post of who was and who wasnt keeping sipps for existing customers to 55.

i.m guessing you slipped the net due to age

Yes just,there is a six month gap at the end where i cant access between 56.5 and 57 unless they allow it if you have already taken lump sums but il just take out the years allowance early and claim the tax back.It seems at the moment its only if you have gone into drawdown your ok.See what the legislation says.The big platforms and every pension company and IFA love the age going back,they dont like drawdown,less assets to get fees from.

[BadAlchemy]

George Gammon video covering the  potential 'Repo blowup 2.0' in 2022 if, or when , they screw up the tapering/tightening/hiking...

Hits home for me why they need to let inflation run hot as much as possible... better to let the debt zombies all die off quietly and gradually that way than tinker with this bomb they have created! Can they pull it off?....

[DurhamBorn]

57 minutes ago, MrXxxx said:

Thanks @DB...I understand your first bit, as that is exactly what I plan to do i.e. drawdown pension by personal annual income tax allowance and 25% tax free pension allowance, but I didn't realize the second was possible...seemed too god to be true, obviously not so I will need to investigate further.

Thing is forget them as divis,they are just money once they hit your bank account ,pounds sterling.Once you then pay them into your SIPP they are simply a payment into your pension and they all attract tax relief up to your full taxable earnings,so 20% or 40% uplift.Learning how SIPPs and ISAs interact etc when using the tax free allowance is a crucial part of financial planning.

[DurhamBorn]

11 minutes ago, kibuc said:

500moz at 99g/t seems like a massive bet that silver will fly. Not sure if it's economically mineable at current prices, but add $10 to the spot and you're suddenly printing money.

Plus its open at depth and likely massive amounts to find along strike.Once they value silver at $20 on resources as they will in a full on bull that alone would 10 bag the company.Im really pleased with Endeavour,they were my no1 rubber band miner when i bought them all and they have done very nicely indeed.

[DoINeedOne]

On 11/01/2022 at 14:21, geordie_lurch said:

Below is a link to a great documentary on Netlfix about a cameraman that goes to Cuba over 40 years of initial boom and the subsequent bust. Three rural farming brothers feature heavily in it and without giving too much away ANY crops or animals that were left unguarded 24/7 in the poor years were stolen to eat by poor locals or gangs After watching this, it solidified my thinking it is probably easier and safer blending into the suburban decay and chaos in a half decent area in such situations rather than being a lone self sufficient farmer open to attacks from all angles and being seen as looking like you have food and resources

https://www.netflix.com/ro-en/title/80126449

 

Watched this last night was a great documentary, felt bad for the 3  farmers 

[geordie_lurch]

6 minutes ago, DoINeedOne said:

Watched this last night was a great documentary, felt bad for the 3  farmers 

Yeah it makes you think about if (when?!) the SHTF, unless you have a solid community behind you will be alone to try and defend whatever you have hence my comment about the 'ideal' of being self sufficient alone in the countryside with cattle, tools and a decent veg garden maybe not the best plan at all

[MrXxxx]

35 minutes ago, DurhamBorn said:

Thing is forget them as divis,they are just money once they hit your bank account ,pounds sterling.Once you then pay them into your SIPP they are simply a payment into your pension and they all attract tax relief up to your full taxable earnings,so 20% or 40% uplift.Learning how SIPPs and ISAs interact etc when using the tax free allowance is a crucial part of financial planning.

Once again this shows the value of the 'Hive mind' here...this is something I was [obviously!] oblivious to, not anymore :-)

[Juniper]

“Crude oil continues its month-long rally and while the early January jump was driven by temporary worries about supply disruptions in Libya and Kazakhstan, a bigger and more worrying development has become increasingly apparent during this time. Besides the surging omicron having a much smaller negative impact on global consumption it’s the emerging sign that several countries within the OPEC+ group are struggling to raise production to the agreed levels.”

https://www.home.saxo/en-gb/content/articles/commodities/tighter-than-expected-market-conditions-support-crude-oil-13012022

This was mentioned on the Macrovoices podcast, @Cattle Prod theories becoming more mainstream

[geordie_lurch]

6 mins of Adam Curry expanding on the repo rates crisis of September 2019 leading to Covid theory and Mass Formation Psychosis - warning strong language

 

[kibuc]

Lol, we can theorise all we like, while in the real world Tesla is now accepting Dogecoin.

Not sure what took them so long, they are a perfect marriage.

Feels like the end of days tbh.

[nirvana]

2 hours ago, MrXxxx said:

The FED will start and then 'choke'? ..they have previous form of this i.e. Taper tantrum.

yup, it's Wall St that chokes em......it's like one of them 'high stakes sex games' when some geezer is getting 'choked in the king sized bed'  

[THE SOUP DRAGON]

2 hours ago, MrXxxx said:

There are a number of good threads on this that a number of Dosbodders contributed to...I learnt a lot, so may be worth rejuvenating them?...anyway, putting them here in one place so easy to find:

https://www.dosbods.co.uk/topic/15755-pension-question/?tab=comments#comment-1071838

https://www.dosbods.co.uk/topic/14900-retire-early-optimum-route-to-zerolowest-tax-and-earliest-date/page/4/?tab=comments#comment-1048067

https://www.dosbods.co.uk/topic/15877-dc-pensions-investment-pathways-from-feb-2021/

https://www.dosbods.co.uk/topic/10911-pension-relief-personal-contribution/

https://www.dosbods.co.uk/topic/9509-pensions-annuities-and-drawdown/

https://www.dosbods.co.uk/topic/6297-pensions-sipp-tax-avoidance/#comments

 

Many thanks for the replies. This thread provides and leads people to information that can literally change their lives.

Nice to see BAT flirting with £30. Downside as DB has stated is it makes buybacks more expensive. Should have bought more but am thankful for what I have and those dividends wow just wow.

[DurhamBorn]

26 minutes ago, nirvana said:

yup, it's Wall St that chokes em......it's like one of them 'high stakes sex games' when some geezer is getting 'choked in the king sized bed'  

It will choke the bond market and growth until rates hit 3%+ on the 10 year then that will start to trigger a move out of inflation assets and back into bonds.Governments cant fund structural deficits without CBs monetizing so rates will move higher until its funded.Emerging markets and inflation loving areas should rally until those 3% rates and maybe for a while after.

[sancho panza]

15 hours ago, DurhamBorn said:

Harmony Gold have more Uranium on their tailings than most Uranium companies have in their mines.Once the price goes they will rework filter them.

Thanks for the reminder.We got some Cameco back in 2017 but no other exposrue to uranium.Sold all but our top ladder in Harmony at $6 last year and clearly need to get them back.I wasa due a chat with my Mum about our goldies portfolio as I feel the need to make some changes eg sell BVN(decent holding that's breaking even but jsut nervous about it) but feeling indecisive and then do soemthing else with it eg buy some MAI/SMD.Now you mention it though DB,this looks the perfect solution as I don't like selling mid size goldies to rotate into smaller ones.I like order in the pyramid.

Appreciate that psot.

 

2 hours ago, DurhamBorn said:

Thing is forget them as divis,they are just money once they hit your bank account ,pounds sterling.Once you then pay them into your SIPP they are simply a payment into your pension and they all attract tax relief up to your full taxable earnings,so 20% or 40% uplift.Learning how SIPPs and ISAs interact etc when using the tax free allowance is a crucial part of financial planning.

Sorry to bombard you (but I have zero know how on SIPPs) but can you wait till you're 53/54,bung in few quid ,get the 20% tax relief and then draw it down a year later before rinsing the pension over the following 10-12 years?

[HousePriceMania]

 

Does anyone hold these, I was lucky to buy them at 940 and topped up at 1065, so 10% up over all, my reasomning was the all this electric bollocks needs the national grid.  Good dividend level too.

Looks like a steady growth stock to me.

[CannonFodder]

20 minutes ago, DurhamBorn said:

It will choke the bond market and growth until rates hit 3%+ on the 10 year then that will start to trigger a move out of inflation assets and back into bonds.Governments cant fund structural deficits without CBs monetizing so rates will move higher until its funded.Emerging markets and inflation loving areas should rally until those 3% rates and maybe for a while after.

Am curious to know more, I would have thought as a novice that rate would need to match or exceed inflation for folk to go to bonds.

AM I looking at this too rationally