Money worries

[bikeme]

Hello,

Am wondering if anyone can help advise if we are on the right track with investments and allocation of our money. I’m concerned about pension pot, money, life in general at the moment. We are 35 and 41. Everything is in vanguard - mostly life strategy 80% or 100%.

We each have £100k in SIPPs. So £200 altogether there.

We have a further £100k in ISAs. Some S&S ISAs and some cash ISAs that I think I want to transfer to Vanguard S&S ISAs.

We don’t own a house and we are renting. We are probably moving abroad soon which is why we haven’t bought one. I’m hindsight we probably should have bought a few years ago but that ship has sailed.

I’m about to come into some money. Probably about £70k. I was going to add to our pensions, put £35k in each. What would you do in my situation! Am trying to invest as much as possible and do some kind of FIRE. But not sure if it’s very realistic as only just started on this journey really.

Thanks!

I'm probably not the person to comment right now as going through a divorce but I wouldn't be giving anyone £35k of my money. Are you married?

Yes. I think I've probably already put that much into his pension. I'm just a bit better at saving than he is. We've always shared money. He paid most of my expenses years ago while I studied. It's at the back of my mind and I'm probably naive in thinking we won't ever divorce. But I really don't see it happening. I don't know if I can put 70 into my SIPP as I don't know how much of an allowance is there, including carry forward from previous years. Is there a way to check this?

Bump

I also wouldn’t be putting money in his pension.
Are you planning on returning to the UK? I’d prioritise buying a property even if it’s a buy to let.

Undecided about returning to the U.K.

I feel like we've always shared money so if I put this into his SIPP, it's more ours than his...

Just remember that once abroad (or maybe that's non resident for taxes purposes - I'm not an expert) you can't pay into an ISA but you can continue to have one. I think you can pay into a UK pension scheme if living abroad but there may be some criteria. Worth checking

The 35 year old should open a LISA, to benefit from the tax uplift from government, you can only
Open one until 40th birthday. Can be withdrawn to buy a house, or age 60 to go towards retirement.

You have a SIPP (which I am presuming is for retirement), and some fairly liquid investments but nothing in the medium term category. That’s where I would focus for now.

Thank you. What constitutes a medium term investment? I'm clueless with investing to be honest, and really not sure what to do with this money I'm about to get.

You can’t put £70k into a SIPP just like that. The limit for an individual is about £2.8k a year I think. If it’s through salary sacrifice or if you a limited company you can put in up to £40k a year and use the 3 previous years allowance as well.
Moneyhelper

I think I still have some allowance from the 3 previous years. That's why I was thinking of putting 35 in mine and 35 in my husbands. Or if not 35, then as much as I can

The OP could put £70k into her SIPP if she is working and has that much taxable income for 2021/22, and has brought forward allowance from prior years to augment the standard £40k annual allowance. Not many people have £70k of taxable income in a single year though! It’s a waste of tax relief to contribute in a year where you won’t get a tax saving.

You don’t have to do salary sacrifice or be a shareholder of a limited company to contribute £40k in any one year, either. Anyone can do it.