It’s another mixed bag of your questions, taking everything from investing in offshore funds to evening up pension funds between spouses and lots more besides!

Shownotes: https://meaningfulmoney.tv/QA19 

00:57  Question 1

Hello Pete & Roger I am a regular listener to you show, love it and keep up the good work.

My question is…

I have a full 6 months emergency fund, I have no credit card debt or personal loans, I have a mortgage and I have just started investing 5% of my wages every time I get paid into the Vanguard all world tracker fund (keeping it simple)

I have a new car every 4 years on PCP (so I basically lease it) as I always chop in for a new car and never pay the balloon payment at the end, this PCP is at 8%. I would like to hear your thoughts on weather investing is still okay to do along side this, the reason for having a new car is that I use it until the warranty expires and then change due to rising repair costs and hassle free motoring. I have brought older cars outright in the past and always ended up costing me more in repairs over the years. I am planning on leasing my cars for the permanent future so if I do not start investing now I will never have a chance to invest, and I do not see leasing at car as a loan as such, more of a permanent lease. Feel free to shorten my message to suit and excited to hear your thoughts, all the best.

Adam

10:10  Question 2

Hello Pete and Rog!

First of all, a huge thank you for all the valuable content you share – I really appreciate it! Keep up the fantastic work! 

I had a quick question that’s a bit technical (apologies in advance!), but I was wondering if you might be able to cover the topic of UK-registered funds when investing in a GIA on the podcast?

I’ve heard that non-UK registered funds are taxed at the income tax rate rather than the capital gains tax rate. Is the best approach to check the ISIN against the list of UK-registered funds, even if the investment is made through a non-UK exchange (e.g., Amsterdam or Ireland)?

Also, when a new client comes to you with non-UK registered funds, how do you typically address this issue?

Thanks again for all that you do – really appreciate it! 

Best, your #1 Fan!

14:00  Question 3

Hi Pete / Roger Thank you for your great work with your Q&As. Your cashflow ladder idea is great advice but when I look at graphs of cautious, balanced, growth funds they all go up and down at the same time. Over the last 10 yrs every time there has been a big market fall all the funds I looked at (at all risk levels) recovered with 32 months max. If 2-3 years cash is held on the 1st rung of the ladder why shouldn’t I hold the rest in growth/agg funds? The cash rung will ride out the fall / recovery so I may as well put my money in a fund with the most growth potential? What am I missing? Stephen

19:57  Question 4

Hi Pete and Roger,

Thanks for all you do. Your Podcasts and YouTube content has helped me get to retirement early.

I have a number of investments in my Pension which are there to continue to grow hopefully over time. I have a well diversified portfolio mainly using trackers.

I want to try to drop a particular individual investment from my portfolio that forms part of the Magnificent Seven, and is therefore part of a lot of the trackers I have. Unless I buy the FTSE Global index as individual shares can you see a way I cannot be in this one companies shares? Not sure there is an answer.

Much appreciated, Chris

24:11  Question 5

Hello

Love your podcast, I thought I was fairly clued up on pensions/finances but I have learnt so much more from your podcast. I recommend it to everyone! Especially my husband, who has so far failed to do so, he leaves the finances to me (which is probably why we are in this position as he has not addressed his pension). My question is:

Our pension pots are very unequal, we're both 47.  I have 2 DB pots (combined are due to pay out circa 14k from age 65). I am also on track to have around 750k in a private pension by the time I am 57, and am planning to retire at this point.  My husband currently only has around 18k in a private pension, and is retraining as a teacher so he will only have a small DB pension not accessible until 68. He will therefore need to continue working for a few years after I retire.  I will need around a 2k a month in retirement, but I am thinking I can take up to £67k per year from my pension (so to remain in the 20% tax band). Use 24k for myself, and then we pay the remaining 43k into husbands private pension (or however much his earnings allow). If he is a higher rate tax payer by then, he would gain a 40% uplift on this or if not he will still get the 20% uplift back so we aren't losing out.  One of the main reasons for doing it would be to even the pensions out so that we can both withdraw tax efficiently in future, rather than me having to withdraw from my pension for both of us and so paying more tax.

It seems like a no brainer but please let me know if I have missed something really obvious.

Thanks in advance! Sarah

29:02  Question 6

Hello gents,

If you pay a charity and claim gift aid within a given tax year, does that take your income down when calculating benefit calculations?

E.g. if I earn £101k p/a and I give £2k to charity and (gift aid it), does that effectively bring my income below the £100k threshold for child government support like free childcare hours?

Thanks, David