Best kept "secret" to boost your retirement money

[@DianneSullivan]

Note I’m not taking account of state pension in the example here. The example I’ve gone through assumes you’re retiring before state pension age

[@jllewellyn8000]

Good clear video! Seen another video of yours that was also good, so liked subbed and shared. My son is leaving school later this year and I have recommended he starts a finance apprenticeship rather than going to college then uni. Maybe you could do a video on careers in finance? That would be well received… we are from south wales too! 🏴󠁧󠁢󠁷󠁬󠁳󠁿👍🏻

[@jllewellyn8000]

Ps: I have also been studying with him with regards to stocks and shares, so we are thinking out of his salary of around 24k average for an apprenticeship he can invest 70% of this during his training as he will be living at home. I do wish I had the education / guidance when I was younger, I’m playing catch up 😂 we are also looking into relocating once he’s qualified 👍🏻

[@austinbar266]

It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.

[@rogerwheelers4322]

Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.

[@joshbarney114]

I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over $2.8million.

[@FabioOdelega876]

@@joshbarney114 I appreciate the implementation of ideas and strategies that result to unmeasurable progress. Being heavily liquid, I'd rather not reinvent the wheel, thus the search for a reputable advisor, mind sharing info of this person guiding you please?

[@joshbarney114]

Finding financial advisors like Marisa Breton Dollard who can assist you on things like investing, insurance, making sure retirement is well funded, going over tax benefits, ways to have a volatility buffer for investment risk would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.

[@FabioOdelega876]

Marisa has the appearance of being a great authority in her profession. I looked her up online and found her website, which I reviewed and went through to learn more about her credentials, academic background, and employment. She has a fiduciary duty to protect my best interests. I sent her an email outlining my objectives and also booked a session with her; thanks for sharing.

[@davem.4003]

Thank you Dianne. Yes, I was aware but I only became aware a few years before my retirement and even if I had known sooner, we would not have been able to afford it because maintaining a household, including a partner and children is expensive! There are some additional examples, in later life, when the same benefits can be achieved in the same way, especially benefiting from the "zero income" pension savings allowance of earnings. If working part-time to supplement pension income, or maybe if a legacy DB pension, when combined with the state pension provides more income than its needed, SIPP contributions can still be made. This may seem pointless but under current rules, Those investments are then protected from inheritance tax, in the event that that becomes an issue.

[@George5Bells]

Thank you very helpful as I didn't know you could pay into another person's pension. Will look into it for our Son.

[@guyr7351]

Great video Dianne, I knew you could invest in spouse and children but not almost anyone’s pension. The illustration at the end showing the £2880 invested for 5 years ( £14410) plus tax relief and then compound interest on top growing to a £60K plus amount at retirement is exactly why I tell My kids and younger work colleagues to get money away now and just let it grow. We used to have public information films, about time the government (or a pension provider) had a few adverts showing this. It might spur a few on to actually do something. As stated on wolf of Wall Street, Greed is good, it can certainly motivate individuals

[@JohnCarlyle]

It should be taught in schools.

[@molex114]

God knows how many people you are helping with their financial education or improving their financial future but you sure are mine so for that and if I may be presumptuous on behalf of everyone else thank you. Not just for my future but also on behalf of my children

[@DianneSullivan]

Thank you. That means a lot to hear.

[@molex114]

@DianneSullivan The thanks is all mine. Financial education in this country is abysmal. My only regret is I found your channel at 58, not 18, although there was no internet then. Even so, while i doubt I'll retire a millionaire, you are helping me turn my and my partners and friends (that will listen and subscribe) retirement from surviving to comfortable and my children's from comfortable to possibly millionaire, and I'm sure I'm not alone.

[@Trigger1973]

Great video and super content. I’m doing exactly that for my daughter who is in her first year at University so wouldn’t be contributing to a pension. Adding £2,880 pa, grossed up to £3,600 at a young age will give a great starting point to compound, especially if I can do this for the next couple of years also.

[@davem.4003]

Don't these donations to someone other than a spouse/civil partner potentially count as gifts and become taxable in the event of an early demise of the giver? That may be a low risk for a younger person but as we get older, unexpected health issues can arise.

[@Worldwithoutboarders]

Thanks for the facts

[@9parasqn656]

First time I've heard about being able to contribute to someone else's pension. That's amazing. I've been on pension seminars and this was never mentioned. I would have immediately contributed to my girlfriends pension had I known this. Glad I didn't now, she left me last year. 🤣

[@pauldavies8658]

Thank you for this information

[@DianneSullivan]

You are very welcome. Thank you for watching

[@ScottDuncan-z5m]

great insight, at present played on speaker to my fiance to help her come to a rational decision. thank you

[@DianneSullivan]

That's wonderful to hear! Let me know how she/he reacts...

[@ScottDuncan-z5m]

@@DianneSullivan I've planted the seed, so who knows how it will grow.

[@johnlindsay3820]

Great video - really useful.

[@parishesofthebuzzard9437]

Hi Diane. A question please... Can a person retain the £1000 savings allowance and avoid paying tax at 40% on savings interest earned if they earn £55000 and £5000 interest ? For example, by paying £20000 into a pension? Similarly, can they avoid any tax on interest at all, by paying £50000 into a pension?🤔 Thank you

[@janeknight3597]

Hi Dianne, is there any chance you could try and explain tax on gifts please. I have no idea how to keep the right records for cash gifts. I think if you are aged under 60 nobody cares but after that it eats at you. Thank you for your really informative videos🙂

[@nigsok]

Didn't know this thanks

[@DianneSullivan]

You're most welcome

[@michaellucas202]

I didn’t know the details. So very useful thank you. I’m in the higher tax rate band and my wife earns at or around the personal allowance level. So this might prove useful. Do the contributions that I make lower my gross income like they do when I invest into my own scheme?

[@stephenhetterley1699]

not aware

[@DianneSullivan]

Hope it was helpful

[@secretstacker]

Loving your channel ...talking loads of sense and looking great too 😄🙌🙌🙌

[@jeffford1450]

Interesting, but you take no accout of inflation when comparing the value of £14k of contributions with what it can buy many years later at £60k. Also the better thing is a think to pay your N/i each year to ensure full state pension.

[@wl660]

Or she could be self employed and pay a voluntary NI contribution on minimal earnings, than buying back previous years. Much cheaper.

[@kevinrichards6506]

Doesn't have to be an either / or scenario. Also, by only using 4% growth, it's a reasonable ccomparison in "today's money"

[@davem.4003]

It is true that a decision on the relative priorities must be made but SIPP contributions could become accessible before the state pension, so these investments could be used to help bridge from early retirement to state pension age. There are many choices and some difficult decisions to be made.

[@julianw2600]

But can this fall foul of IHT 7 year rule if I die during contributing to an aunt's pension?

[@geofflancaster8542]

Yes, so do it via "regular contributions of excess income" if you can, which puts it outside of the current gifting regulations and IHT.

[@wl660]

My wife is self employed working, earning less than her Personal Tax allowance. Can she effectively pay in more than the £2880 and get 20% tax relief on it? Or does the tax relief hit that ceiling until she pays tax? Ie. If earning £10k, could she put £5k into her pension and get tax relief on it?

[@johnkelly6861]

I am not 100% sure but I think this is how it will work. If you are in a high tax bracket then your wife does not pay into the pension but you can pay up to £10,000 (her income) and you claim tax relief.

[@parishesofthebuzzard9437]

​@@johnkelly6861100% of gross earnings. No earnings you can pay in the gross amount of £3600. £2880 net. If you earn £40000, you can pay in £40000. So essentially you are getting more tax relief than tax you would pay on £40000, due to the personal allowance.

[@adrianl5899]

In your example, if your self-employed wife has £10k profit in the tax year then £8k can be contributed into a pension and it will receive £2k tax relief. If she becomes a non-earner then the max that can go into her pension is £2880 of contributions, which will receive £720 in tax relief.

[@markfindlay8636]

I wish someone would pay into mines 😊

[@DianneSullivan]

lol so true!

[@Marten_t]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

[@Richard-q1]

Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks

[@Marten_t]

@@Richard-q1 However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments

[@Richard-q1]

@@Marten_t Oh please I’d love that. Thanks!

[@Marten_t]

@@Richard-q1 Clementina Abate Russo is her name

[@Marten_t]

Lookup with her name on the webpage.

[@JohnCarlyle]

Can't you just 'give' your partner money to put into their pension, thereby be limited to £60,000 instead of £2,880 ?

[@DianneSullivan]

The £2,880 is the amount someone not earning can put into their pension. I think I said in the video that if they are working then you (or they) can contribute up to £60k or their registered earnings, whichever is lower (sorry if I didn't say this but I think I did...). The point is that HMRC know how much you are earning - or tell them that you're earning - so if it's less than £60k that's the maximum that you can put into your pension. Hope that clarifies

[@hayescharles-w3p]

People don't understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 20%. The increases don't match our income, yet certain investors still earn over $10,400 in stocks and assets. Wish I could accomplish that. All thanks to *Layan Talia Chokr* the lady you recommended too.

[@DavidCrott]

You're right! The very first time I tried. I invited $1000 and after a week, I receive $10,000, that really helped us a lot to pay up our bills.

[@kinggeoffrey3801]

Over 2 years it's over 20%. Pretty much every item has more than doubled.

[@Benzknees]

My grocery bill is no different than it was pre-covid, but then my basket is virtually all fresh food.

[@1292liam]

I think Im madly in love with you