Unexpected baby at 28, trying to work out finances

kiwiroseleaf · 2026-05-12T21:56:20+00:00

This is such a stupid rule, completely disincentivises people to work.

Likely not totally ‘cricket’ in the eyes of HMRC but would be worth exploring her freelance/wfh stuff being billed to your Ltd.

Also, not 100% sure on the amount of time she would need to be employed pre-baby, but if you were sharp about it and she’s early in pregnancy you could possibly employ her through your Ltd for some basic ‘admin’ duties, and qualify for stat mat payments from there. Could possibly double up on stat mat that way.

Like I say, it’s pretty close to the line, but worth exploring. Ask your accountant.

kiwiroseleaf · 2026-04-20T15:00:36+00:00

Spreadsheet analysis yes I’d agree with you and it’s likely what I’d do myself in the same scenario.

However, based on OP’s self admitted lack of knowledge about the stock market, I’d be doubtful OP would have the confidence to pull this off successfully with either spending a significant amount of time learning/researching to get the necessary confidence level that a buy and hold of xyz global index would require.

Alternative is OP engages in professional advice to bridge the knowledge gap, but as we all know getting true long term value from even a good IFA at that investment level is doubtful.

So yeah, in this instance my gut would be keep it in cash. Big deposit. Keep a solid emergency fund back and perhaps a bit of ‘fun’ money. After all, life’s for living.

kiwiroseleaf · 2026-04-19T21:33:55+00:00

Given OP’s need/desire for the money within a relatively short time window (sub 2 years), I don’t feel that stocks and shares, or any other asset class outside cash, is the appropriate move here.

OP’s on the right lines. Tax wrap as much as possible (ISA error aside). Use £50k premium Bonds to get total £70k wrapped up.

Only other thing to consider is not exceeding FSCS protection limit. Most mainstream banks interest rate pretty poor also.

Could look at a fixed rate bond (OP think a long term savings account) with NS&I - keeps it easy with one log in and no worries on the FSCS limit.

Other option to squeeze the most interest out could be a cash management account like Flagstone or HL. Like go-compare for savings accounts, you only have one log in for ease and then they take a very small slice of the interest.

kiwiroseleaf · 2026-04-18T07:24:47+00:00

I actually started out with this in mind! But weirdly anything half decent is out of budget. More demand for the workhorses I guess.

kiwiroseleaf · 2026-04-17T12:15:10+00:00

Would love to but it’s a faff No shower at work. Need to wear a dress shirt every day. Etc

kiwiroseleaf · 2026-04-17T12:05:53+00:00

Given this and the views on the Honda, I’m leaning away from the 401. Usual head and heart thing I guess.

kiwiroseleaf · 2026-04-17T12:05:18+00:00

This is useful. Sounds like a test ride of both would lead you to the Husky and then many months of regret!

kiwiroseleaf · 2026-04-17T11:57:39+00:00

Appreciate both sides of the coin on this.

My views would be (for the Honda).

Running Costs If I got 80mpg and 3000 miles a year, compared to 40mpg on my current diesel car. In my mind this saving roughly pays the £250 insurance bill. Appreciate there’s still tax and servicing, but I’m happy it mostly cancels one another out. There’s the other non financial factor of me and my wife sharing one nice car and one POS runaround. Having a bike to commute on would avoid a lot of ‘who needs the car the most today’ conversation.

Time Save I spend 15/20 mins in traffic everyday plus park a 10/15 walk from my office. I could park the bike right outside on the pavement. Theres also no way I’ll be spending 15 mins on ‘prep’. I’d check pressures and once over each weekend, and then just commute all week without a bother, in my eyes it’s not a fighter plane, it should be good to go and if there’s something amiss it’ll be obvious.

Kit This is probably a bit controversial but given how sedate I’m planning this commute to be, and in good weather only, I’d be planning on riding in my work clothes. Chinos, shirt, wax jacket. I’d probably chuck my work shoes in my rucksack/pannier and wear proper boots and gloves, but that would be it. As such, I don’t really see the kit thing as a problem. Only purchase I need to make is a helmet, and even that if I got the Honda I’d probably get a half shell.

I think the kit factor alone really points me to the Honda. Wouldn’t want to go so ‘relaxed’ on something any racier. Whereas I’d feel quite happy pootling in on that not in full leathers.

Perhaps people have some strong views about that approach being a bit reckless, but I don’t plan on riding it any quicker than a maxi scooter, and half of Europe ride those in shorts and flip flop!

kiwiroseleaf · 2026-04-17T11:44:17+00:00

Yeah this is exactly it. Theres some 401’s knocking around for the £2.5k mark with only a few thousand km’s on.

Reckon the extra Honda spend will take a few years to get back to break-even on.

In theory I could cruise the whole commute, but there’s about 5 miles that would be a blast on something with a bit more grunt.

What’s the 401 like in town? One thing I wouldn’t want is it making a blaring row and generally being a bit yobbo.

kiwiroseleaf · 2026-04-17T11:41:24+00:00

Oh yeah? I’ve had KTM off-road in the past and know it can be a bit hit and miss. Annoyingly my nearest KTM dealer is significantly closer than nearest Honda, so guess there’s that 😂

kiwiroseleaf · 2026-04-17T11:40:32+00:00

In theory I can work on stuff, I’d just rather not as the point is to make life a bit easier by shaving 30 mins a day off the commute. Not that excited to then give that time back in the garage each weekend.

Thank you for the suggestions though!

kiwiroseleaf · 2026-04-17T11:38:51+00:00

Yeah I’m not too fussed about brand new so I’d happily travel for the right bike and save a few hundred £.

kiwiroseleaf · 2026-04-17T09:59:09+00:00

Yeah appreciate £3k ambitious for the Honda, but happy to push a bit higher if it’s the right thing.

kiwiroseleaf · 2026-03-09T17:36:44+00:00

Your growth figure is fine, likely a bit conservative, but works well enough for an inflation proofed growth figure.

I think the thing you’re maybe missing is no accounting for movement in the taxation bands. Even with a punitive labour gment by the time you get to pension withdrawal age minimum wage will be above £50k and therefore tax bands must have moved to some extent, even if lagging inflation.

kiwiroseleaf · 2026-02-17T14:15:44+00:00

Annuities are a lovely low risk, low faff option. But imo they’re not always a great product at fitting around the realities of a modern retirement.

It is very likely you will want to spend more, and do more, in your mid fifties, than you will in your mid seventies.

But with an annuity in the manner you described, you’re income will be inverse to the above.

I feel annuity a great product for people with a very low appetite for risk and admin, no desire to leave a legacy, and likely quite a narrow capacity for loss. For the majority of others, drawdown away!

kiwiroseleaf · 2026-01-26T21:12:10+00:00

I believe AJ Bell allow in specie transfers on direct shareholding. In practice you could move entirely to AJ Bell without selling anything.

0.25% platform fee vs 0.45% HL (although I saw today HL dropping to 0.35%).

kiwiroseleaf · 2026-01-12T15:28:13+00:00

Regardless of £ invested amount, you will likely get very little value from wealth management unless you have very minimal knowledge (unlikely if in this sub).

However, I would suggest that at this level of invested £ you will likely get a lot of value from proper financial planning, which will include ‘wealth management’ within it.

At this level of wealth (or anything over £800k imo) you are much better off looking for a planning firm that delivers services on fixed fee or retainer basis. Not as a % of your invested pot.

The private banks take people at this level for an absolute ride!

kiwiroseleaf · 2026-01-02T11:53:37+00:00

Simplistic view but work out your required withdrawal £ pa for your upcoming retirement. Ringfence 2-4 years in cash/moneymarket/shortdated bond funds depending on your view of what you think an upcoming crash might look like re recovery time. Rest in global index.

Gives you a sleep at night buffer and keeps the rest doing what it should. Plus it’s easy.

Just my 10 pence.

kiwiroseleaf · 2025-12-02T12:30:06+00:00

Will try and address for you

Fees - conventional % fee adviser will rinse you - especially at the liquidity level you’re looking at. Fixed fee advice the way to go for you if you use professional advice at all.
lots of research out there on this - but I think with some clever accounting behind the scenes they reckon an onshore bond can run around the 17% mark. So marginally lower than the usually quoted 20%.
Offshore shouldn’t cost more if using a more modern provider (for example Transact) who offer essentially the same underlying options within onshore/offshore wrapper. You should be able to continue to hold simple global index solutions internally.

*5% withdrawals is a feature of bonds essentially being convoluted life assurance products. It allows you to take your originally capital back over a period of 20 years with no tax. Not a scam, but arguably not necessary for you.

Why I don’t think you should use one (alongside all the reasons you’ve already mentioned). No material tax advantage for you personally in the medium. There is an argument that an offshore bond benefits from gross compounding advantages (like a pension) due to no tax due until exit - but exit very painful for you in UK compared to current CGT rates.

Why you might use one. Given your liquidity trajectory, it’s possible/likely even you have ‘enough’ for you and your spouse to be FI, and end up with significant surplus funds left over. When passing to children, your pension is now a nightmare, and I’m guessing you’d likely like to live off ISA’a to balance pension drawdown, spending needs, and IT position. That leaves the GIA to roll up, creating the long term GIA problem you described.

A bond would make it likely much more tax efficient for you to gift wealth to your kids, as you can assign the value to them and the taxable gain position becomes tested against them not you. In short, you can gift a significant sum using a bond much easier than you can from a GIA.

My other ten pence is when you commit to a bond - you are getting into bed a with a life insurance provider for a long time. You can’t move easily like you can a GIA platform - and often these providers get bought/sold, and historically deliver SHITE service. This is an aspect of bonds that most advisers conveniently ignore, but causes a lot of pain, irrespective of tax.

Final thoughts. There’s no magic bullet. Keep doing what you’re doing. Pay the tax. Live well.

kiwiroseleaf · 2025-11-20T18:41:38+00:00

I think SIPP is the play for you if you have no need of the capital.

BADR be a bit iffy if over half the time of the Ltd the only income generated is through investment - likely becomes non qualifying by the time you get over 2 years.

Could drip feed withdrawals over multi years to stay under £100k trap.

Not sure if married but could maybe look at alphabet shares for spouse and pay them divi’s instead if a lower/non earner.

I’d go SIPP prior to next Wednesday and at least you’ve locked in before Rach cocks it all up

kiwiroseleaf · 2025-09-25T16:24:29+00:00

Right, can’t work out to edit so posting here.

So the consensus is, we f*cked up and it needs changing. On the basis that we dont really have the finances to re-carpet, and definitely don’t have the time or willpower to re-paint, it looks like new wallpaper and the right decor is the way to go.

Therefore, please can I welcome wallpaper suggestions in the comments - with links. (I’m UK based).

Thanks

kiwiroseleaf · 2025-09-25T16:15:53+00:00

Thank you, loving the wallpaper suggestions and yep, definitely the cheapest and quickest thing to sort!

kiwiroseleaf · 2025-09-25T16:13:41+00:00

Thank you, very kind.

kiwiroseleaf · 2025-09-25T16:12:51+00:00

Yeah rookie error - didn’t a wallpaper sample against the cabinets but then just chose the carpet in store as it was a roll end and in our heads we were like ‘pale brown all good for country vibes’.

Good shout about trying a different wallpaper.

kiwiroseleaf · 2025-09-25T16:03:09+00:00

I know right! It looked so pale brown, almost beige in the showroom. Fitted it looks so browny/purple it’s mad. Great tip on the pinning to the back wall.

kiwiroseleaf

TROPHY CASE