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Pension

Background: I'm 55 years old (entrepreneur, likes freedom), partner Hayley (47, student, cancer), Eldest Tara (23, returning student), Mariel (19, university) and Leo (9, school, autistic).

Assets

Plan 2019

If £682k (£800k, £2m) secondaries, about £53k (£76k, £196k) tax due under CGT/entrepreneurs relief. Have 3 years to invest under EIS and then claim back CGT (can deduct £12,000 for the CGT allowance and 10% of about £24k for NowTranscribe losses and about £7k for other losses. Total £15k).

Over 1.5 (2, 2) years (19/20 and 20/21) put about £176 (£186k, £480k) into EIS, that is £120k (£93k, £240k) a year. Claim all against tax and use rollover so that tax is only on (£1400k) or (£136k) tax which is then absorbed buy EIS shares - no overall tax. Want all tax certificates by end January 2021 deadline, so finalise EIS in July 2020 to give 6 months for certs. Have £69k commited as of mid-sept 2019, so about another £50k in 10 months - this is a normal rate of progress.

40% income and child benefit kicks in at £50k, capital gains tax is 20%. Tax minimisation says £50k income.

Want to make use of £12k CGT - so need about £300k there.

Want to use up AC losses, so about £200k there, £16k income a year that won't be taxed.

OLD below

Immediatatly £1m into momentum tracker, £1m into P2P (8% return) - pull out from P2P to fund EIS and to pay tax in Jan 2021. Leave 500k in P2P along with existing 100k, that's basic income of 48k. Reduce if still working.

Stable state - say in 2 years time:

  • P2P: £1m AC SIPP, £500k dealing
  • iShares: £1m dealing, £400k ISA
  • EIS £800k plus £50k VCT

About £1.5m is asccessible - for new company, land purchase, etc.

Plan 2018

Distribute over 4 asset classes, world stocks, P2P, VCT/EIS and property. House is ~550k so take out and aim for ~600k in the others.

  • Withdraw £133,333 from pension at end of tax year 25% tax free (£33,333), no NIC so pay £28,360 tax on £100k taxable
  • Invest £94,533 in VCT/EIS and claim all tax back (0.3 * £94,533 = £28,360)
  • VCT/EIS returns go into stocks (CGT only)
  • Live off £33,333 + £28,360 = £61,693 (or less)
  • Move £20k from dealing to ISA annually
  • Pot lasts to age >100 if 3% growth above inflation

Missing:

  • About £6p.a. to charity
  • Strategy for potential Cantab Research payment
  • Money to start another company

Cantab Research strategy:

  • I am currently CTO, a full time position (£80k p.a.)
  • I plan to step down in September 2018 to January 2019 so that the company is sellable
  • The last share price was £1.20 and I have 10,000 shares (some of which have options over them)
  • I would like a liquidity event where I sell at an increase over the last round, say £1.40 to £2.00
  • I am prepared to sell all to achieve diversification and non-compete

What if £4m from Speechmatics?

  • Rough income is 3% * £6m or £180k for no asset depreciation
  • No obvious need to change asset allocation
  • Would hit the 60% zone - how big is this - is it worth worrying about?
  • If £1m to each area
    • World stocks - easy but should add diversity, like IRBT (ishares robotics)
    • Property: REITS or Assetz Exchange
    • VCT/EIS: limit is £2m per year, but would take many years to invest out of income
    • P2P: Not a problem to invest £1m
private/pension.txt · Last modified: 2019/09/18 11:37 by admin