Seriously. I wish they would divorce. Pay her off, continued marriage will kill her. Divorce would be healthier for the kids. He might get healthier and drink less.
Imean, his ancestor founded a whole new church in order to divorce and remarry whilst King. There‘s precedent.
Background - FIREd (aka redundancy) last year.
Currently living off payout, GIA, bank interest and dividends.
Fully expected a minimal tax burden this tax year as all sheltered, and that which isn’t is mostly within the PA.
Had a very pleasant surprise where I received in April (post 06) a residual bonus, residual PSU payout and residual RSU payout both of which I sold immediately on vesting for a very minor CGT loss as the share price was and is heading south. The ex company does not have long term viability.
Obviously these were all taxed at 0T rates, with the bonus also incurring NI.
The amount plus my expected dividends will take me over the £125k gross as taxable income.
I haven’t withdrawn anything from my SIPP yet, so in theory I’m assuming (but please correct me if wrong) I could put £48k post tax from the bonus and shares into the SIPP, get that topped up and get a refund from HMRC for the higher rate.
However, when I withdraw my pension, it is healthy enough that I will be paying top tax rate on it. The only benefit I can see is a deferral of tax payments and hopefully tax free growth until I can access in 5 years time.
By adding extra from post tax income I don’t benefit from any salary sacrifice NI savings. I don’t need the extra money right now as we are still living off the redundancy payout. I’ve already max’d family ISAs. I don’t need childcare vouchers.
Its a hugely privileged more than 1st world problem I’ll admit, but I got to this financial status precisely by fretting about these details, so bear with me!
What considerations am I missing? What would you do and why?