Taking the transfer offer of £1.7m, Tideway were able to maximise the use ISAs, General Investment Accounts & Self Invested Personal Pensions to create an effective retirement strategy. The use of a combination of different investment vehicles provided an opportunity to balance the risk and take full advantage of the different tax allowances available.
The structure also gives Sebastian and his wife more flexibility with their retirement savings as their money is not held solely within a pension, allowing for changing tax rates and their personal circumstances. The total net income amounted to £43,000 p.a., which equated to just over £3,500 p.m. Sebastian paid £6,400 of tax, giving them a tax rate of 13.0%. compared to a tax rate of 20.4% if he hadn’t shopped around.
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