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vand

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vand last won the day on May 14

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  1. Public goods are a "market failure" argument, but in this day and age its one that is increasingly indefensible as technologies continually evolve to be able to be profitable to the provider. eg, TV/Radio transmissions can now effectively be provided only to those willing to pay for them; policing & security can be hired privately. The public good argument becomes absurd if you take it to its Nth degree.. eg, should the government provide deodorant, as it benefits people in the wearers' vincinity as much as the wearer themselves?
  2. The sensible thing to do is to spread your savings around. Utilize both a Pension/SIPP and an ISA and if you can a LISA too. They each have their strengths and weakness and can compliment one another. Of course here on TSF we like Precious Metals, and the CGT-exemption on certain coins is a handy feature which, with a bit of planning, can easily be worked to your advantage in your overall wealth building plan.
  3. No, it's currently set at 55. There is talk of them tying it to the S.P.A. but so far it is only talk...
  4. I get what you are saying, but it's not really an excuse not to do it. The goalposts do change, sometimes for the worse, but they do actually change in our benefit quite a lot too. The recent flexible drawdown rules are of great benefit if you like to tinker, opening up things like pension-recycling, and look at how generously they have increased the ISA allowance by almost triple in the last decade too. The introduction of the LISA was as recent as 2017 which I think is hugely beneficial. Yes, state pension age will inevitably have to be raised, but it will also be a gradual thing, 68 for Gen-Xers, probably 70 at worst for Millenials
  5. Private Pension/SIPP access age will likely be 58 or more for anyone young enough to have a LISA right now. 2 years is much of a muchness.. I kinda strongly disagree with the last part of your post. I think the tax shield vehicles available in this country are incredibly generous. 40k pension 20k ISA and potentially 5k LISA are much more generous that your can get in eg the US
  6. I’d rather mess with small potatoes than be an a$$hole whenever I’m wrong
  7. Go to the back of the class young padawan https://www.hl.co.uk/investment-services/lifetime-isa "As with other ISAs, you can choose to save cash or invest in the stock market, and your money can grow free from UK tax. But the real benefit is an extra 25% from the government of up to £1,000 a year."
  8. A LISA is still an ISA first and foremost; you can use it to invest in whatever you see fit just as you can with an ordinary ISA. Using 3% return is a very conservative.. I would be quite disappointed to only see 3% real return over 20-40 years of investment. The tax bands will move as inflation moves. Of course we can't know for certain if they are likely to move ahead or behind the rate of inflation, but it is reasonable to assume they stay roughly at their current level, and then you can adjust the outlook as the future unfolds year by year. Sharesave scheme sounds good too and I would not be against it if you had confidence in your company. Everyone must judge their own personal situation.
  9. I personally never invest directly in the company I work for as a rule of thumb. You exppose youeself to double risk of your investment underperforming and your job being put at risk if the company underperforms. The out-bound tax relief is entirely valid; I advocate it as a tool to use alongside other forms of retirement savings. That way it reduces the amount of taxable income you need to draw from those other sources. If you can build a LISA pot from which you can draw £x amount on, that reduces the need for you to draw £x amount other taxable sources of income. Eg, in scenario 1 if I need on £20k/year after-tax income to live on after retirement then I would need to draw £21,875 gross from my pension of which £9375 is taxable at 20% from which I get: £21875 breakdown: 12500 (pension @ personal allowance) + [9325*0.8] (taxable pension income) = 20,000 However in scenario 2 if I had built up a LISA to be able to draw on alongside my pension and could withdraw, say 5k a year from that, I would only need to withdraw £15,625 from the pension, for a lower total of £20,625 overall £20,625 breakdown: 12500 (pension @ personall allowance rate) + [3125*0.8] (taxable pension income) + 5000 (LISA) = 20,000
  10. The best way to get rich is to have both a great offence and a great defence. The LISA and tax efficiency is about optimising your defence. Of course I advocate that people always try to increase their earning power, but doing one doesn’t come at the expense of doing the other. You can and absolutely should do both. Leaving £1k of free money on table each year is 1k on the table each year. Over 40 years that kinda snowballs up. If you are think it’s not worth doing then whip out £1000 from your wallet once a year and set fire to it... same thing.
  11. What a a$$hole thing to say. £3k is a big commitment to a lot of people. You make the most of what you have to work with, and not everyone earns your wages, MrGeorge.
  12. It's 25% relief on the way in AND 0% tax on the way out (under the already discussed scenarios). Other schemes only give you of one of these benefits, not both. > as a deposit it is not best option as well coz as fare as i remember ( i might be wrong ) you can use only money from LISA as a deposit, it cant be joint with ie cash saved Really?? I find that very difficult to believe.. please link your source?
  13. I have no clairvoyance, and I do not claim to know with any confidence what will happen over the short term. I have ideas of what the price might do over the next weeks and months, but my guess is just as likely to be right or wrong as anyone else's. I would not in the least bit be surprised if gold retraces back to $1300 over the next few months if current jitters subside, but equally I it would not surprise me if we saw $1700 if just a few things continue to escalate. I have been around for long enough to know that markets can surprise both to the upside and downside. Your best bet is to ignore the short term volatility and look at the big picture.
  14. Nobody can foretell how things will play out. I don't subscribe to this "slow crash" theory at all. When things reach a tipping point they always snowball downhill faster than anyone can anticipate. There is more leverage in the system than at previous peaks. It will blow up just as spectacularly. https://www.advisorperspectives.com/dshort/updates/2019/07/22/margin-debt-and-the-market-up-4-8-in-june
  15. So much for the bond bubble bursting... Bond funds have gone ballistic in recent weeks. TLT is pushing new highs: Investors are now falling over themselves to lend money to the US Government over 30 years for less than 2%: