Withdrawal strategy with heavy GIA
Hi- we are 51M-48F married (1 child)
Investments -
GIA : 1.2M
ISA : 495 (270k & 225k - spouse)
Pensions : 600k (505 & 95k - spouse)
Cash : 200k invested in easy access saver (4%) accounts, received from a recent property sale. Will likely convert some of it in to GIA and top up spouse’ pension and leave rest for emergency.
Property : Paid up home of 600k ish worth.
All investments are in VWRP or equivalent all
-world type funds available in respective platforms. No bonds , gilts , or money funds.
I got lucky with RSUs from s/w job + the recent tech boom. Pension and ISA have built up only in the past 3 years or so via heavy salary and bonus sacrifices. The GIA has almost no capital gain as of today because this is recently converted from RSU to GIA and taxes paid up.
Child will be starting Uni next year. All his tuition expense is sorted via JISA and some fixed deposits.
I am about to hand in my notice once I have gone through my numbers in detail and am satisfied it will last. Spouse wishes to continue to work for at least another 5 years (@ 24-26k pa depending on bonus).
We are planning to spend at the higher end (90-100k) a year for the first 15+ years and fulfil travel goals, health goals and hobby interests while we are healthy and fit. We are not used to spending this much so it will be tricky to handle this phase but eventually plan to slow down to 50k ish in today’s term in our late 60’s.
I am planning drawdown from GIA and keep doing bed and ISA , and top up pension until GIA is 0. After which switch to tax efficient ISA+Pension per the tax rules at that time. We are ok to take a break and limit drawdown to 45-50k when the market is not giving good returns.
I calculated the GIA should last 10-12 years with 6% growth while we would have bumped our pension and ISA to 1.2M each by then.ge as I plan to drawdown heavy in the first
Until a couple of years go we never thought we will have anything other than the house to leave in inheritance. I recently read about the pension double taxation on IHT if we survive 75yrs.
My Queries -
My main question is about order of drawdown, given our intention to go all out on spending in our 50s. I see most fire strategies talk about ISA bridge but not a lot is talked about GIA+ISA
Does the GIA first approach make sense?
Is it worth to plan to draw everything from the Pension first as soon as it’s available and leave ISA/GIA for later to avoid pension double taxation on inheritance?
Is it worth hiring a retirement planner / advisor to handhold us through the drawdown strategy and see if the money will last?
We have a generic ‘Will’ made ages ago when we bought the house to pass on everything to the child. For inheritance and control of assets, is it worth looking at a Trust ?
Apologies for the long post, thanks in advance for your inputs.