About this episode
Pete Matthew and Roger Weeks cover self-employed saving rates, inheritance tax and estate planning, and how dividends are treated inside pension drawdown (including SIPPs). They also discuss salary sacrifice and contribution limits, the pros and cons of recycling tax-free cash, and whether to overpay your mortgage or invest via a Stocks & Shares ISA. Shownotes: https://meaningfulmoney.tv/QA42 01:07 Question 1 Hi Pete and Roger, Thank you for your amazing podcast! My question is about budgeting & savings percentages: Should you aim for a % of your gross pay or your net pay when it comes to aiming for a savings percentage? e.g. Invest 20% of gross or net? I'm self employed and work contract to contract. From each contract payment I have to give 25% to agents and lawyers. Then I get paid the rest and have to put aside some of the money ready for the Tax man. When planning for how much I should save / invest from each contract payment should I be putting aside: 20% of the original contract amount? (which would be prior to the agents taking their cut and prior to the tax man taking his cut?) 20% of the amount left after the agents but prior to the tax man? Or 20% after both the agent cut and tax man cut? Thank you! Isabel 05:50 Question 2 I am a 70 year old widow with no children. My current net worth is about £2 million. This is made of of a house (£500,000), savings and investments (£1,150,000) and a drawdown pension pot of £350,000 which I inherited from my husband. My husband died aged 68 so the pension pot is currently tax free. I plan to leave our inheritance tax free allowances of £650,000 to family, mostly nephews and nieces and the reminder to charities. The drawdown pension will also go to named family members until the rules change in 2027 after which this will also go to charity. I understand that this would mean my estate wouldn't be subject to inheritance tax. Am I right about this? Is there anything I might not have thought about or any flaws in my thinking? Thank you for your very informative podcast, Susan 08:24 Question 3 Hi Pete and Roger, I'm still catching up on the back catalogue and am still loving the show, the listener questions are a great alternative, absolutely brilliant :) My mind has been wandering as it usually does, and this time thinking about my retirement plan and what dividends will look like at retirement. I have some queries I would love you to clarify please if possible. As it stands I have a combination of SIPP and stocks & shares ISAs all globally diversified with various stocks and ETFs etc and also a NHS DB pension. I'm about to turn 49 and planning on a retirement at around 60. I'm trying to plan in the most tax efficient way (obviously this may change with future governments). For now though I am trying to max out my ISAs regularly for the tax free b
