Combining accountancy and planning

Welcome to another show full of questions form you, the audience and hopefully some meaningful questions from Pete & Roger. This week we have questions about paying school fees, becoming a financial adviser, how to invest an inheritance and lots more!

Shownotes: https://meaningfulmoney.tv/QA33

01:15 Question 1

Good morning Pete & Roger, Thank you for a great podcast, been really enjoying it over the years and it's been no end of help for me. My question concerns my grandchild. She was born in America but now lives in the UK, is duel nationality. As grandparents we were hoping to put money aside into a savings account for her. Now obviously we thought the JISA but as she is born in America we can't do that. Is there any advice for how we can save for her in the most tax efficient way for her, conscious that she is quite young. If we can put some money away now regularly, it could build up into a nice little nest egg for her. Also hoping to do this for other grandchildren, not necessarily born in America. Any advice gratefully received. Mike.

05:48 Question 2

Hello Pete & Rog Wow these Q&As just keep delivering incredible value -keep up the great work! I'm 52 and my wife is 43. We're both higher-rate taxpayers contributing to a DB-DC hybrid via salary sacrifice. We'd like to retire together in 12 years (me at 64, my wife at 55—she has a protected pension age). We both have a DB pension and a DC pension. Combined we have emergency fund of £30k in Cash ISA, no S&S ISA.

Observations: - Once both DB & State Pension are in payment pay, planned spending of £60k p.a. is fully covered. - My ability to draw DC within the basic-rate band post-State Pension is limited, as DB 33k p.a. - My wife has much more scope to use her DC tax-efficiently before her DB/State Pension start. - Likely outcome: large residual DC balances if we only withdraw what's needed to spend.

Question: Would it be sensible to draw more from DCs early (using UFPLS at ~15% effective tax) and reinvest the surplus in S&S ISAs? This could: - Lock in withdrawals at basic-rate tax before DB/State Pension restrict allowances - Reduce the chance of paying higher-rate tax later - Diversify across ISAs (which we intentionally lack currently)

Am I letting the "tax tail wag the investment dog," or is this just pragmatic tax-efficient planning?

Cheers, Dunc

09:05 Question 3

Hi, Thank you both for your financial wisdom! It has definitely lit a fire under me!

My husband and I (41) would like financial independence at 50. We have received £120k early inheritance gift and also plan to sell 2 rental properties over the next 5 years to reduce commitments (a further approximate £250k post CGT)

We are mortgage free and I have since filled our stocks and shares LISA and ISA, investing in 100% equity low cost global trackers.

Other than investing the remaining in a GIA and transferring to ISAs each year are there any other options to help money grow over the next 9 years.

We may continue to work at 50 but under our terms. We need sufficient to tide us over from 50-57 when we can consider access to Pensions and the LISA at 60. Thanks Amy

12:18 Question 4

Dear Pete & Roger,

Thank you so much for all the work you do on YouTube, on the Website and on the Podcast, it really does make a difference to people's lives and long may it continue!

I'm 36 years of age, and I currently work as an Aircraft Technician, which I somewhat enjoy. However I find the older I get, the harder it is to keep up with the physically demanding nature of the job, and fear this may become more of an issue further down the line. This has prompted me to think about my future employment. Engineering has been my whole life, and my curiosity for learning and my persistent quest for personal development has resulted in me becoming a fully qualified Car Mechanic and Aircraft Technician. I have also achieved a BSc (Hons) in Motorsport Engineering & Design! However, my race car days are over, and in a way I feel like I have "completed engineering" to the best of my ability, and I am eager to take on a new challenge!

I have always been interested in finance (some would say I talk about nothing else!). I've always kept on top of my own personal finance (thanks to yourselves), and try to encourage/empower others to take control of theirs. The past few months I have been thinking of self-studying (whilst remaining in my current employment) for the AAT Level 2+3 in Accountancy, however the more I think about it perhaps Financial Planning is more my cup of tea? I love working with numbers, working with and helping people, planning for the future etc, however I worry I lack the necessary confidence and people skills to become a successful advisor.

So I guess my questions are:

1. How do you become a Regulated Financial Planner? 2. Is it possible to self-study for the CII Level 4 in Regulated Financial Planning whilst remaining in employment? Or would you advise against this? 3. Are there any pre-requisites to studying for the CII L4 in RFP? 4. Would an Accountancy role be more suited to someone who does not possess great people/communication skills? 5. Could a RFP qualification open doors to work in industry as a FP&A as oppose to personal finance? 6. Anything else you wish to add for clarity? Both your opinions are highly regarded. Keep up the great work!

Kind Regards, Tom

23:55 Question 5

To the wonderful Pete and Rog

I am a long time listener with my husband . the podcast and videos have been invaluable in developing our understanding of personal finance - translating complex issues into an accessible format so that people like me can get to grips is a real skill and thank you sincerely!

My husband and I are 53 and have quite late become parents to beautiful twin daughters who just started secondary school (and are learning how to slam doors and stamp feet... you know that age...) anyway back to us, we are both employed, my husband is a higher rate tax payer and I am on the lower rate band.

Because of some specific issues with the kids development needs we have decided to prioritise their education and to put them in our local small independent school where there is excellent specific support for them. They started in September and were paying £45k per annum. just typing that number scares me!

To support the fees we moved house and extended our mortgage. This given us c100k for fees and alongside significant monthly savings out of our income (1.5k) has given us capacity to support the fees for the next three years, however it won't be enough to take them through to GCSEs.

We're feeling weighed down by our mortgage which is now significant although supportable because of our salaries. It leaves us very little capacity for savings or luxuries like holidays. We realise this is our choice!

Up until this point we have been relatively disciplined paying into pensions. My husband has DB pension scheme which will pay circa 50k a year from the age of 61 (he has been paying in since 21) and one of those good, connected DC pots which should have circa £350,000 in by 61. the 350k can be used to provide the TFLS as it is connected to the DB scheme. So, we know when my husband retires, we will have capacity to clear the current mortgage. But this can only be accessed at 60+. I have a smaller pot which is £180k currently. I'm paying in £150 month which is as much as I can afford.

We need to make a planning decision about how do we afford the 5 years of fees not just the next 3? the decision is imminent as we have to renew our mortgage in the coming months. We have we think two options (excluding selling a kidney or two).

1. To further extend the mortgage. This will mean we push back possibility of retirement even further and will certainly use up all £265k of TFLS from husbands pension.... and gives us a problem of repayments - further squeeze. or 2. we wondered whether we could use my pension fund? The idea we had was to use tax-free cash from my pension to support the fees. I will be 55 in November 2027 and we think we might be able to get c £50,000 to use as a TFLS. - Is the drawing my tax-free lump sum a real option? It feels like the only way we might access funds other than the mortgage. - what impact would that have on my pension does it mean I can't continue to contribute to the pot? - Finally, how might we evaluate the pros and cons of the two options?

we suspect there is no right or wrong answer but if anyone can offer a few wise words it would be the dynamic duo - thank you're the best. Katherine

31:50 Question 6

Hi Pete and Roger

I love this show. There's so much great information and it brings me comfort to know so many people are making similar decisions to me and I seem to be on the right path!

My question is about property vs index funds. I am about to inherit about £100k and am wondering what to do with it. I invest in global index funds every month so would be comfortable DCA-ing (pound cost averaging) it in over a few months.

But, I do not own a property. So, I could buy a 2-3 bed property in Kent with approx. £150k mortgage and rent out a room to take advantage of the rent-a-room scheme. I am fortunate that my job provides my accommodation so I do not pay ridiculous rent and so do not need a property.

Would you choose index funds or property for growth over the next 10-15 years? I'm located in Kent.

Thanks for sharing your thoughts. Ceara