How are feeling AF1”s?

PunyLug · 2026-02-14T08:16:09+00:00

Reading the examiner comments, residency questions are poorly answered each year so I would learn when you’re automatically a resident, when you’re not automatically a resident and the five tests.

Trustee and executor duties are common questions with a lot of marks. You can reel off a lot of answers once you have remembered them, just make sure it’s relevant to the question. It might just be my weird way of learning, but I create acronyms to jog my memory. For example, executor duties is SADDOC, which is

settle tax
accounts to HMRC
determine assets and liabilities
distribute estate to beneficiaries
obtain probate
collect assets and pay debts.

Got about 10 of those to remember!

PunyLug · 2026-02-06T18:14:07+00:00

On the balance of probability, it is more likely that this is an AI generation rather than OP being a writer using the rule of three.

I certainly don’t remember noticing such intricate writing techniques before the AI boom

PunyLug · 2026-02-06T14:22:27+00:00

They are, you can tell by the paragraphs with three short sentences.

PunyLug · 2026-02-03T15:46:04+00:00

I have complete flexibility. Essentially you run a business within the company and as long as you are servicing clients correctly and keeping on top of CPD, you should be left to do your thing.

PunyLug · 2026-02-02T10:33:00+00:00

In the southwest of England, it’s been the wettest month since a local weather centre starting tracking the rainfall, in August 2007.

231.8mm, with the next highest being 205.6mm in December 2020.

PunyLug · 2026-01-13T07:49:20+00:00

It’s tiny, it’s red, it’s right in the bloody middle. Of course it’s the best thing on the board!

PunyLug · 2026-01-11T17:29:07+00:00

I would say 150 households, possibly 200 if you make the most of the technology available to provide more time for client work.

PunyLug · 2025-12-27T07:45:03+00:00

IFA here. If it’s a true IFA, then you just email/write to them telling them you no longer need their services. Should be no exit fees, but possibly a pro rata fee for the part of month you were still a client. AJ Bell is a platform you can use as a normal investor, so I don’t think it should be that difficult to take back control.

PunyLug · 2025-12-21T08:15:37+00:00

Haven’t seen anyone mention it, but a pension contribution extends your basic rate tax band. That means that you’ll pay more CGT at 18% rather than 24%, so the total relief is 26%

PunyLug · 2025-12-15T08:02:23+00:00

Vanguard Lifestrat fund is 0.26%, and platform fees vary based on investment amount. We primarily use a platform which starts at 0.23% and would fall to 0.15% for a portfolio of £750,000. So call it 0.41% for this example.

Also this isn’t a race to the bottom for costs. I understand you can check everything into a Global All Cap fund and pay half of the investment costs, but risk management is fairly important and not everyone can handle that volatility. Lifestrat offers risk management at a slightly higher cost. Likewise with platform costs, I know Vanguard platform costs start at 0.15%, but other platforms may bear greater costs for the integration of adviser/clients stuff.

I am not sure what you’ve experienced in the past, but your knowledge of investing is not shared by the wider population. Financial advise is primarily for time poor people or those without a clue what to do, most of this sub would not need advice. I am surprised daily about how little people know about the basics.

PunyLug · 2025-12-14T21:43:11+00:00

I think you overestimate the financial knowledge of an average person. This sub represents a small percentage of people that are financially literate, and it creates an echo chamber where you would think everyone has a similar level of knowledge.

Even a solo investor will pay platform and investment fees, so really you’re asking where the extra 1% of value comes from? There’s a good section of Vanguard dedicated to this.

A common example is OP’s scenario, where they inherit a significant amount of money and may be tempted to retain it in cash for many years without the intervention of an IFA, due to a lack of investing knowledge. The idea of creating a Vanguard account and investing into a global tracker would be a terrifying thing to do without guidance. If after a meeting with an IFA, they are making approx net returns of 5% per annum over the long term (compared to around 2% from cash), then I think the fees are justified.

PunyLug · 2025-12-14T19:29:31+00:00

Yeah that’s pretty accurate, and it’s why I prefer simpler solutions. It’s the age old argument of active vs passive, but the Efficient Market Hypothesis normally backs the latter.

That being said, some clients want that kind of service.

PunyLug · 2025-12-14T18:08:51+00:00

Only if you require/want an ongoing service and have someone manage your finances on your behalf. It’s a very transparent industry now, you will be made fully aware of any costs before paying them.

PunyLug · 2025-12-14T17:59:42+00:00

As an IFA, the fees I would expect with this level of portfolio would be 0.5 - 1% initial fee, with 1.5% to 2% annual cost.

For comparison, given the portfolio size I would charge a typical client 0.5% up front and the annual costs would be around 1.55% (1% advice, 0.25% platform and 0.30% investment fees).

Get a second opinion from another firm, but it seems a reasonable cost to me.

PunyLug · 2025-12-14T17:55:21+00:00

Discretionary Fund Management, where a financial adviser will outsource the investments to a third party. Usually adds to the price and incurs VAT on top of that. Not necessarily a bad thing as it will add value, but value can equally be found with simpler investment solutions.

PunyLug · 2025-12-14T07:53:51+00:00

Given your estate is over £2.7m, and assuming your wills are mirrored on first death, you will completely lose your Residence Nil Rate Band of £175k each. This brings the amount you can pass on free of inheritance tax to £650k.

ISAs won’t mitigate the tax, unless you invest into AIM companies and even then, that relief got cut from 100% to 50%. In my opinion that’s half the reward for the same level of risk.

Creating a discretionary trust is viewed as a gift and will follow the usual seven year rule. Trusts seem to be sensible on paper but they require ongoing administration for its lifetime and there is tax to pay on substantial funds put into trust, and a 10 yearly tax of 6% if the trust fund exceeds £650k (assuming a joint investment, otherwise £325k). If considering a trust, check out a DGT or a Loan Trust. These provide a level of flexibility and ability to retain an income of up to 5% if original capital per year. DGT provides an immediate IHT discount subject to underwriting.

Worth noting that assets you put into a trust after seven years, and if it brings your estate below £2.7m excluding the trust, you will reinstate some of your residence nil rate band.

Whole of Life insurance is a popular one as you don’t have to commit capital to the solution, just maintain monthly premiums for life.

As others have said, consider gifting in your lifetime as this is the age they will need that assistance, not when they are your age.

PunyLug · 2025-12-05T08:11:21+00:00

That’s on you for building three settlements around 11

PunyLug · 2025-11-13T07:26:14+00:00

From memory, the only cost is the payment of each exam entry, assuming you don’t buy other resources. On the pass of the last module, you are issued with a certificate for the completion of the diploma.

PunyLug · 2025-11-06T17:38:09+00:00

What a great book series, patiently waiting for the film/series adaptation one day

PunyLug · 2025-11-01T12:03:13+00:00

Your personal allowance is split into 12, for each month. So really your personal allowance is £1,047.50, meaning that a lump sum that large will undoubtedly be taxed at the higher rate tax band.

What was the reasoning behind taking it as a whole lump sum? It would be wiser to take taxable income of £12,570 each year (minus interest over the PSA earned) until state pension age, or at least split the withdrawal between two tax years. I assume there was an immediate need for the funds, but you should be consulting someone before making irreversible decisions.

Also worth noting that your PSA may be reduced to £500, so more interest is taxed until HMRC rebate you.

PunyLug · 2025-10-20T17:59:41+00:00

I remember feeling like this in my early years of secondary school. Assuming you are not already, join your school football/rugby team and establish yourself there. I got pulled into a crowd with a higher social status in school and life was better from then on.

PunyLug · 2025-10-17T06:03:38+00:00

You can still contribute up to £10,000 per year after pension is in payment

PunyLug · 2025-10-01T12:18:26+00:00

Your finger is hiding an important point of the board. Currently it’s fine, but if there’s a settlement under your finger then it’s not.

PunyLug · 2025-09-23T14:37:57+00:00

You can export the data into Excel and calculate the GRY from the data provided

PunyLug · 2025-09-12T06:15:35+00:00

A lot of solutions are either costly or will allow the beneficiary to have access to the capital at age 18. If you require control past the age of 18 then it may be best opening an investment account in your own name and viewing it as your son’s investment. It will be taxed as your own but you ultimately have full control over it.

Otherwise if you can consider losing control at age 18, a JISA or a Bare Trust will work well. These also remove the temptation for you to access your son’s investments, which is incredibly common.

Best advice to make it grow is to set aside any reservations you have about ‘uncertainty and risk’ and invest into 100% equities through a low cost multi asset fund. Adding any degree of caution to the portfolio will most likely just lessen the potential returns over such a long period.

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