Credit deflation and the reflation cycle to come (part 9)

[belfastchild]

1 minute ago, Harley said:

We go in hard at the max 25%, nothing less.  Get all you can or go home says us!    We have plenty of immediate and better uses for that 25% rather than dribbling it out in partials.

Ive only taken the 25% from my old work pension and my sipp 25% day is fast approaching (6 months).
How do they value the 25% is it the overall value of the portfolio on a given (set) day?
Im planning to liquidate at least the value of the 25% cash soon as ajbell are giving me over 3% on it at the minute IIRC.

[Harley]

1 hour ago, DurhamBorn said:

As it stands i need to run ISAs down mostly due to IHT etc.

I know oldies who say that because they are worried they'll be dumped in old age if they gift it before death.  It's amazing how many folk behave as they get older and scared.  Can be really hurtful for those who really do care about them.  Not you obviously, they are well passed massage age and you're probably a bit young to be giving it away!  Plus, I don't know all the ins and outs, just how some oldies behave, musing about rewriting their wills and stuff.

Edited April 25 by Harley

[Harley]

7 minutes ago, belfastchild said:

Ive only taken the 25% from my old work pension and my sipp 25% day is fast approaching (6 months).
How do they value the 25% is it the overall value of the portfolio on a given (set) day?
Im planning to liquidate at least the value of the 25% cash soon as ajbell are giving me over 3% on it at the minute IIRC.

Yes, has been for us.  We all used an estimate for the paperwork but the final amount was assessed by the provider on the day.  Both II and HL were very good dealing with it all and we were talking to the SIPP folk direct, not the brokers.

Edited April 25 by Harley

[Mandalorian]

46 minutes ago, Loki said:

Is it like this?

https://tradingeconomics.com/argentina/stock-market

Actual LOL

[belfastchild]

Just now, Harley said:

Yes, has been for us.  We all used an estimate for the paperwork but the final amount was assessed by the provider on the day.  

Cheers. Might just move a lot of the sipp into cash for that period then, just in case it all goes to shit the day before ;-)

[Harley]

1 minute ago, belfastchild said:

Cheers. Might just move a lot of the sipp into cash for that period then, just in case it all goes to shit the day before ;-)

We just liquidated what was estimated plus a little bit more.  Unlike ISA transfers, I'm not even sure you can ask them to liquidate (i.e. you have to make sure the cash is available), and we always do our own trades.

[Bobthebuilder]

18 minutes ago, belfastchild said:

my sipp 25% day is fast approaching (6 months).

WE must have a similar birthday I had the 6 month to go email the other week. At the moment I would like to just withdraw divis on a regular basis not go into drawdown. I must look into all this, time is fast approaching.

[Harley]

12 minutes ago, belfastchild said:

Im planning to liquidate at least the value of the 25% cash soon as ajbell are giving me over 3% on it at the minute IIRC.

Terrible compared to the others.  Not a fan of AJB based on personal experience.  Also far better (and up to a point tax free) rates outside the tax wrapper.

This highlights the need for planning (as I mentioned upthread today) if you want to minimise tax later on.   

However, it's also important to appreciate the unique risks arising once gone into drawdown

[Yellow_Reduced_Sticker]

On 24/04/2024 at 15:21, Pip321 said:

Abdn back to 138p.....I was waiting for 130/135 but might ladder in. Nah, fuck it...I will wait 😂😂

That's down a fair amount from the surge to 145p this morning...joking apart maybe this is my time to have a go considering I sold this at 180p............

i've been busy gardening, so only just checked now, well i think we've missed the boat on the abrdn ultra CHEAP-SKATE low price, looking at the chart last few days lows are getting HIGHER, oh well ...time for me to get back of the class with a dunce hat on, and just buy the SP500 at a all time high!

[Harley]

5 minutes ago, Bobthebuilder said:

WE must have a similar birthday I had the 6 month to go email the other week. At the moment I would like to just withdraw divis on a regular basis not go into drawdown. I must look into all this, time is fast approaching.

Not sure I'd want to be doing the (part of) 25% tax free paperwork on a regular basis, although maybe it's a different process.

[Harley]

17 minutes ago, Yellow_Reduced_Sticker said:

i've been busy gardening, so only just checked now, well i think we've missed the boat on the abrdn ultra CHEAP-SKATE low price, looking at the chart last few days lows are getting HIGHER, oh well ...time for me to get back of the class with a dunce hat on, and just buy the SP500 at a all time high!

Maybe you'll get another chance, although at least another bounce for now!   And anyways even our brill techs () would need a day or two to confirm a likely sustained move up from a low.  Of course we actually know whether to probably send you the hat but mums the word!

Edited April 25 by Harley

[Bobthebuilder]

3 minutes ago, Harley said:

Not sure I'd want to be doing the (part of) 25% tax free paperwork on a regular basis, although maybe it's a different process.

It is all a bit confusing for little old me. I have been letting cash build up if the 25% is the best option. Sure its called uncrystallized withdrawals UFPLS, not tax free if I understand it correctly.

[Funn3r]

1 hour ago, SpectrumFX said:

HL can do 2FA, and will turn it on if you ask them to. I requested it in a moment of paranoia, and now they text a code to my phone every time I log on.

That's not what I call 2FA. If you're in a bad signal zone (which I am) it is useless.

Proper 2FA uses at least "TOTP" timed one-time protocol which is to say the frequently encountered thing where you get a six-digit number, changed every 60 seconds,  and you have to type it in. Even better is X.509 client certificate access - as used when you login to the Spanish equivalent of HMRC "Agencia Tributaria"

[Noallegiance]

2 hours ago, Long time lurking said:

All sorted 

 

Now they want to talk about revisions data.

[Long time lurking]

 

[DurhamBorn]

1 hour ago, Pip321 said:

I know a lot of people drawing down using partial amounts from the 25% tax free element and some from the main taxable part to maximise tax allowances. Some even recycle back into the SIPP but tbf usually only £2880 pa (max for a non earner) and there are a few tricks like that which are quite useful but very personal to individual circumstances. 

One thing to be really wary of it crystallising your SIPP (ie taking some money out) before you split some of the money because once you do crystallise it you can no longer split it. Maybe only important for big SIPPs but worth knowing. 

I wish I had know that because I would like to split my SIPP between the Pru, HL and AJB but I can’t anymore because it’s crystallised and therefore whilst I can move the SIPP, I can only do it in one whole amount.

It’s a little daft rule….and there are quite a few things like that which are useful to know. 

Thats huge,yet like you say not well known,i didnt know it.

[M S E Refugee]

10 minutes ago, Long time lurking said:

 

Chad move!

[Harley]

2 hours ago, Long time lurking said:

All sorted 

 

Are there no depths they won't sink to?

[Chewing Grass]

10 minutes ago, Long time lurking said:

 

Looks like Exxon had already stuffed some UK firm way before this in Dec 22.

HOUSTON, Dec 9 (Reuters) - Exxon Mobil Corp (XOM.N), opens new tab on Friday closed a $407 million sale of its operations in Central Africa's Chad and Cameroon to London-listed firm Savannah Energy PLC (SAVES.L)

Exxon has been exiting African operations with declining crude oil production to focus on its massive liquefied natural gas (LNG) project in Mozambique and on more lucrative operations in the Americas. It recently retired a platform in Equatorial Guinea and is preparing to leave that country.

https://www.reuters.com/business/energy/exxon-completes-sale-chad-cameroon-operations-407-million-2022-12-09/

[DurhamBorn]

43 minutes ago, Bobthebuilder said:

It is all a bit confusing for little old me. I have been letting cash build up if the 25% is the best option. Sure its called uncrystallized withdrawals UFPLS, not tax free if I understand it correctly.

It is,i will be doing it.You can draw £16700ish pa tax free using your allowance and 25% tax free.I will go into full drawdown and take the full 25% tax free cash the year before State pension age unless im way over IHT still in my ISA.If i am il leave the SIPP alone and run ISAs down etc.These allowance freezes are a nightmare.The Tories could of lifted them before they get booted out,no way Labour will.

UFPLS means 25% of what you draw out is tax free,but the pension is not in drawdown,its just lump sums.When you put in drawdown you take the full 25% tax free at once.You used to have to go into drawdown at 75,not sure if you still do with new pension freedoms.

[Harley]

5 minutes ago, DurhamBorn said:

Thats huge,yet like you say not well known,i didnt know it.

There's potentially more with UFPLS (e.g. here) but best I suggest advice is sought.

[Bobthebuilder]

12 minutes ago, DurhamBorn said:

It is,i will be doing it.You can draw £16700ish pa tax free using your allowance and 25% tax free.I will go into full drawdown and take the full 25% tax free cash the year before State pension age unless im way over IHT still in my ISA.If i am il leave the SIPP alone and run ISAs down etc.These allowance freezes are a nightmare.The Tories could of lifted them before they get booted out,no way Labour will.

UFPLS means 25% of what you draw out is tax free,but the pension is not in drawdown,its just lump sums.When you put in drawdown you take the full 25% tax free at once.You used to have to go into drawdown at 75,not sure if you still do with new pension freedoms.

Thank you for the reply DB, I don't want to clog the thread up, but I presume this withdrawal would be once a year rather than say monthly?

[Red Debt Redemption]

4 minutes ago, Bobthebuilder said:

Thank you for the reply DB, I don't want to clog the thread up, but I presume this withdrawal would be once a year rather than say monthly?

Clog it up, I've rellies getting to same age but all they know about is the 25% lump sum as I said about it while they doze off to Netflix not bothering their arse. Didn't know about can take above the £12570 ish as some kind of 25% tax free amount AND a 25% lump sum later?

[ThoughtCriminal]

Good double post from Kathleen Tyson spelling out the implications of expropriating Russian assets. Consensus amongst US and aligned is that it's no big deal. The complacency is shocking.

 

[spygirl]

I like this. Its funny.

ECB will need more rate cuts if Fed holds back, says policymaker

Head of Italy’s central bank highlights risk of US stance pushing up global borrowing costs

https://www.ft.com/content/0112fe8d-856f-43aa-9bbb-c2106b00b5d6

The European Central Bank is likely to need extra interest rate cuts if global borrowing costs are pushed up by the US Federal Reserve maintaining its restrictive monetary policy stance, a top eurozone policymaker has said.

Fabio Panetta, head of Italy’s central bank, said in a speech on Thursday that if the Fed keeps rates on hold longer than markets expect, or even raises them, it would be “likely to reinforce the case for a rate cut [by the ECB] rather than weakening it”.