Exam predict Q Flashcards
(17 cards)
What could you discuss in ISA?
Tax efficient and status
Easy to withdraw and use
ISA transfer to transfer
Types of ISA
Self select and managed ISA
Expand Junior ISA
What could you talk about in pensions?
Ever expanding
types of pensions
state pension
2016 before and after
NI contributions for pension
What could you talk about for investment funds?
Units funds (give units, trust deed)
What a fund is
trustee vs manager (and board of directors)
Different types of life assurances (with profit fund, unitised with profit, unit linked and bond distribution)
What might you talk about in buy to let property investment
Early release schemes
Interest only payments
SVR
advantages and disadvantages of buy to let
What landlords have to consider
What is defined benefit and defined contribution?
Defined benefit is a pension where they will take into account your salary and years of service, usually they will take 1/60th of your salary.
Whereas defined contribution (jobbedtalent offered) is where you and the employer will pay into a retirement pot. (more tax efficient)
Is defined benefit or defined contribution more tax beneficial?
Defined contribution is more tax beneficial.
What are three factors that defined benefit pension scheme has?
Salary, years of service and 1/60th of salary to pension
Whats the risk with defined benefit?
That employers have the funds to pay your retirement.
How does pensions like defined benefits pension schemes work with factors of years of working, salary and 1/60th of salary?
They use it to calculate your pension they will pay when you retire, hence why its risky they might not have funds to deliver on the pension benefits they promised you.
Do you pay tax or CGT on pensions?
No CGT but you do pay income tax on pension withdrawals.
Pensions, what is the tax level and percentage, how does it work in basic?
You get up to 25% no tax during withdrawals, after that you pay tax. 10K, 2.5k then you pay income tax on it.
Some pensions include what?
Life insurance cover
Life insurance cover that comes with pensions, do you pay inheritance tax?
No
Whats the type of tax pensions are recognised as?
Income tax
What does AVC stand for in pensions and what does it do?
Additional voluntary contributions which means adding to pensions/ topping it up
How does pensions get split during a divorce?
Pensions can often be shared so sometimes you might get more of the pension, your wife might get more from a certain asset such as house sale etc…
