QA61 - Listener Questions, Episode 61

In this Meaningful Money Q&A, Pete Matthew and Roger Weeks answer six listener questions on the UK money decisions that trip people up. We look at the best place to hold an emergency fund (cash ISA, Premium Bonds or stocks and shares ISA), how the £10,000 Money Purchase Annual Allowance works if you retire part-way through the tax year, and whether moving pension income into an ISA can help fund future care home costs. We also cover claiming a refund on overdraft charges, balancing a police CARE pension with a SIPP, LISA and ISA to retire at 55, and paying employee share scheme proceeds into a SIPP tax-efficiently.

Shownotes: https://meaningfulmoney.tv/QA61

01:51  Question 1

Hi Pete and Roger - I'm quite a new listener to the podcast having come across it in my current pursuit of career-changing into the marvellous world of Financial Planning, from Accounting. The mini-series on what makes a good financial adviser was very eye opening and helped me take the decision to make the leap into financial advice - so thank you! Currently only 4 days left of my notice period as of writing.

My question is hopefully a VERY simple one, especially for gentlemen of your calibre - I'm undecided and procrastinating on where the best place to hold my emergency fund is. With some indecision and flippancy over the past few years I've managed to end up with a little bit in a number of different pots, ranging from:

- around £2,500 in Premium Bonds (yet to win a prize)

- around £4,000 in a S&S ISA which of course is taking a bit of a hit as-of late

- the remaining £2,000-£3,000 in a Cash ISA

I know the short-term volatility of the S&S ISA is not well suited for an emergency fund, as evidenced in the last few months, but the amount just slowly grew over time while I was haphazardly saving. In your opinion, is this just as simple as putting everything into the Cash ISA and just having to eat the small inflation erosion vs interest gains? Naturally I want the funds to be available quickly were I to ever need them.

Thanks for all the fantastic podcast episodes and apologies for my question being as long as it was for such a simple ask.

Chris

06:25  Question 2