SIPP vs ISA vs NHS Pension The Ultimate Masterclass for Medics

99% of full time expert professional investors don't even beat the average returns. If you charge me 1%, then check whether 1% will be compounded over 20 years.

I just understood it just now when you said it. But if I look at the grand scheme of things and over time it's actually going to be lost.

99% of active investors perform worse than the S&P 500.

Any money you've paid into your NHS pension when you get to the pensionable age, you're still able to claim that money going forward. And is there anyone that you prefer more over the others? Let's say like more banguard or invest engine than others.

You should be looking to invest 15 to 20% of your income so that you can get quickly to your financial destiny or freedom. So the first thing I want to do is I want to give us a short quiz. Can I just get. I read a lot of your feedback and when you were joining and a lot of things that kept coming on was isa, SIP and limited company and all that. Can I just check, has any of you actually gotten the guide on sip? Did you get the SIP guide that I set up? If anyone has gotten a thumbs up. Okay, I done. Lovely. Yeah. So that's good. Okay. Not yet, Sonia. Okay, you get it before the end of a session we shared. You should be able to download this straight away. All right, the first thing in the quiz is when was was the what the maximum amount you can contribute to your ISA in a taxi? Can anyone just tell me or type it in the chat box? What's the maximum amount you can put in your ISA? But someone is too big. 20k. 20k. Easy question, easy question. All right, Easy. All right, you guys, you know it too well. And what's the maximum amount you can put in your pension in a year? I mean including your LHS pension, your sip. This is the second question. Some people are too fat. And I noticed some of the people in the mastermind who already in the mastermind answer these questions too. Okay, I see 40k. CHK. Adana Shagu said 20k. Mostly said 60k. CHISTIC. All right, I applaud everyone who has given it a go. I've got the third question just to help me. Someone said no idea. That's the best answer. All right. Okay. Now the third question on the mentee which you can see was when you think about investing in one word, what do you feel like? What's. What sort of feeling do you experience? I just want one word. Type it in the Chatbot for me. Uncertainty. Thank you. Someone said excitement. Yeah, I, I'm, I like seeing my excitement. And I'm going to ask you a question about that excitement. Ali says confused. Lloyd says concerned. Say great excitement. Uncertainty. Shall. I said 50. 50. And Sonia said money, money, money. Okay, lovely. All right, I'm just going to ask one last question before we delve in. When you think about taxes. I posted something today in our private group in our community, HMROC has hired 5, 000. They are thinking of hiring 5, 000 new staff to help collect taxes. And I was thinking, okay, these taxes tend to squeeze people who are professionals, who you can easily tax because you can see how their money goes. I remember going to my baba today. I had to pay him cash. Obviously I don't know how much tax he pays. It's not my problem whether he pays tax or not. In fact, I tipping 25. But, but HMRC is hard to track people like that and billionaires. But it's easy to track people like us. Doctors, lawyers, accountants in the middle. So let me see your words. When you think about tax, you think about putting an emoji. Okay. Shaggy said, tax, bad limitation. Putting more emojis. Why? Where were these emojis when I was talking about investment? 31.1. And then I said, not again. Alice says shylock. She said, I know some frustration. So I said, punishing. Yeah. And care said, helping the masses. Okay. Yeah, of course, crippling, very much high. I think, I think I can say that in the UK the taxes can be quite high, especially for doctors. So thank you everyone for your participation. I think we are off to a banging start. So the first place I want to start is basically why are we having this session? We are doctors, healthcare professionals, medics. You probably saw some of my write ups on LinkedIn or you saw my YouTube video or maybe someone even just sent this to you. So, and if somehow you stumbled into this session and you don't know me, I just want to make sure that we all on the same page. I'm Dr. Andy Grim. I'm the founder of moneywisedoctor.com it's a platform that has already helped thousands of healthcare professionals to make smarter financial decisions. So I used to be a salary GP. Former salary GP. I left the salary GP job two years ago. That was 2022, actually December, when I got to a level of financial flexibility and freedom that allowed me that opportunity not to have to work for anyone at all. Yeah. So I still hold my, my license as a doctor. But Money Wise Doctor seems to be taking most of my time these days. Last year we published, I think about 60 blogs. We've created 300 videos, spoken about 14, 15 events, lots of webinars, and all that kind of stuff. This is how to get financially smarter in just five minutes. Sometimes the difference between making smarter financial decisions and costly, horrible financial mistakes is having the right information at the right time for the right person. So every week I write the Moneywise Doctor weekly newsletter. It's an email newsletter packed full with valuable financial insights and updates to help you make smarter financial decisions and avoid costly mistakes. Some of the areas I've been covering over the last 70 weeks include actionable tips on tax strategies, pensions, investing side hustles, and several other financial areas. Now join thousands of medics who subscribe to the Money Wife Doctor weekly newsletter to receive it straight to your inbox. And it's totally free. Don't miss out. Subscribe now using the link in the description. And now let's jump right back to the episode. And of course we now have a mastermind which is like 20 doctors who I'm working with one on one for 12 months. And I think we did an investment masterclass last year that was four weeks, day one was five and a half hours. And I see she here who said whenever she thinks of investment she gets excited. She was part of that mastermind master class on investing. So I'm not surprised it's no longer like a mystery for her. Right, so that's, that's it. So this afternoon, this evening is to answer some burning questions. I get a lot of questions in my DMS. Like I saw somebody, Dr. Wilson said she found me on LinkedIn. Thank you. I get a lot of questions on my LinkedIn and my Instagram places, but I'm not able to answer all of them at once. That is part of why I put on this session so that we can get people to ask real questions, not just what you read on a blog. Sometimes you've got nuanced questions, issues you want to address. And again, some of you were also asking questions about the Mastermind, which is a 12 month program. We'll also answer that obviously for people who are interested. Right. So at this point I want to just get into the first thing, the pressing. The most pressing now is that in just about 10 weeks this taxi is going to end. Now why is that? If, what was the implication of that? Doctors, healthcare professionals, a lot of times we find that we are on the back foot when it comes to things like managing Our finances, taxes, investment, you can imagine if you're paying double the tax I'm paying. It's hard for you to get ahead if you're paying more tax than you have to pay, it's hard for you to get ahead because basically, while you're paying more tax, I can use the excess extra money I've got to invest while you pay taxes. Now, for some of you, you didn't even realize there was a 60% tax trap. You were just hearing about it for the first time when you read one of my articles or you've heard it from somewhere. So the 60 tax trap happens when or if you find yourself in above 100k, between 100k and 125k, you. You start to lose your allowance. So there's an allowance everyone gets, it's called the personal tax allowance, and it's £12,570 annually. And when I say annually, I don't mean January to February, I mean like the taxi, which runs from April 6 to April 5. Now, everyone gets that tax allowance, meaning that if you make any amount up to 12, 5, 70, you don't pay any tax on it. Right? I think that's clear to all of us. Now, what happens is that once you cross 100k, for every 2 pounds above 100k, you lose 1 pound out of the 60, out of, out of your. Your 12, 570. So for every extra 2 pounds you make above 100k, you just keep losing. You just keep losing. And for those of you who want to play around with the figures, you can go to nhssalarycalculator.com I think you do post it in the chat. We can also send it at the end of the event. That's just a calculator I built. We built it online to answer the questions because we had a lot of people asking, how do I know if I've hit the 60 tax job? How do I know at what point I can actually put more in my pension? How do I know how much more I can end before I get there? So we build that calculator. Once you hit that number automatically, it will flash up and tell you you are beginning to lose your tax allowance. All right? But today is not about the NHS calculator, it's just to deal with specific issues. Now, if you end above 100k, for every 2 pounds above 100k, you lose 1 pound out of your tax allowance. And by the time you hit 125,000 pounds, or if you want to be really specific, is 1,25140 pounds. Once you hit that amount, whether it's come from your salary or if you've come from rental property or maybe you did some medical surveys like some of us that follow my emails, you do medical surveys and you get paid once you hit that amount, then by that point you've lost the entire tax free allowance of 12, 5, 70. So it's, your marginal tax rate is just unbelievable. A lot of doctors don't know about it, you've never heard about it, just wonder why you're earning so much but at the end of the day there's not a lot going home. Now just to make sure we're all on the same page before, let's say when was the first time I heard about the 60 tax chart, if you can remember. If you tell me in the charts, did you just hear about it now or did you hear about it before or maybe heard about. He didn't know what to do about it. Can you tell me when you heard about it? I've got my, I've got my baby, my, I've got my eight months in the background. Okay. So Cat says two years, two years ago. I've got my eight month baby. So two years ago, okay. Last year roughly. Okay, right. So sorry, I heard about it from my post. Okay, that's good. Was that, was that recently on LinkedIn or. Okay, on LinkedIn. Okay, a few months ago, last year. All right, so you guys are all clued in. There's no one that just heard about it for the first time now? Oh yeah, me. Yeah. I mean that I said didn't know and got trapped. Yeah, I think I got a Message from a Dr. Scott on and she said she, she touched her chat GPT about this stuff and then charge 50 sent her my video and she said dude on chat GPT is not recommending your videos. Right. Irrespective of when you heard about it. What's important is what can you do about it? And one of the biggest ways to deal with the 60 tax trap we've already talked about. There are many options but the biggest option is true pension say because everyone is allowed a 60,000pounds pension. I know you guys gave the answers. Yeah, the correct answer is 60,000pounds pension allowance. So those of you that got it, you can put your hands together for yourself. You're allowed every year in the UK, every tax year you're allowed 60, 000 pounds. That's the maximum amount you can put in your pension. I know, I know, I know. If you're an ST one, you're thinking, well, I don't have that amount of money. Yeah, but it's good you know about it before you hit that amount. And I can see consultants and GPs, I can see some of you that already know that I've been in session. I can see you nodding your head because probably you already affected. I think someone make that a mention here that she was affected. Excellent. Yeah. Sorry, ask, is that the NHS pension, that includes everything? Your NHS pension, if you've got a private pension, if you've got a salary, sacrifice, anything that you put into your pension, 60, 000 is the maximum you can put in a year. There are two problems here. Some people don't use all the allowance and then there are people who use less than the allowance and they. I mean, if you don't have the extra cash, yeah, that's fine. But some people have. But they don't know that they can actually use up the allowance. So one way to go about it could be contribute as much as you can to your NHS pension. If you're in the NHS pension. I'm not in the NHS pension, Obviously, you lucky guys in the NHS pension, if you've got a salary job in the NHS pension, so you can actually ring up your NHS pension administrator to ask them, oh, I want to add some more to my pension. And a lot of times they will tell you the amount you can put in. Not very much, especially if you're a consultant. Most times you're already contributing as much. If you read my guide on the 60% tax trap, I put in the levels you can contribute for your pension. Now, most times, even if you contribute the most in your NHS pension, you're not going to hit 60k in a.

Year.

Say, roughly, because the numbers keep changing. Let's say roughly, you're putting 14 of your income. If your income is a hundred K, you put 14, that's 14,000 that you've put into your pension. So you still got like 60k allowance. So 60k minus 14k that. I don't, don't want to do any public math here, but I will probably be giving you around 36. Did I get that correctly? Or rather 46,000. That is still left. But remember, for NHS pension, your employer also contributes. I put in the exact number in my guide, so again, that doesn't bring you to that 60k. So now if you don't use up your 60k, that's fine, but that's one strategy. If you decide to put in as much as you can into that, that will automatically reduce the amount that is taxable because your pension is counted before you're taxed. Now, even if you end up not using up your whole nhs, if you don't use your whole allowance because the NHS pension was not enough to get there, you can still go ahead and use a private pension. So that's what the SIP private pension is. There are many options. There's self invested personal pension, which I prefer because you can manage it by yourself. You don't have to pay any crazy fees if you use the right platforms that charge little or no fees. And again, there's sars, which is a bit more difficult to manage. But your private pension, you can decide to use it to get up to that amount. Again, for people who run limited companies like ADAI is here, I know a few other people. If you run a limited company for your local, you can actually pretty much pay directly from your personal. From your local account, you pay into your limited company pension or alternatively can pay into your personal account and pay into your pension. It's called director's pension. Director's pension. So the director's pension, you are allowed as a director of a company to have a pension. So if you don't have the NHS pension, you can go ahead and pay into your personal pension, your sip. Okay, I'm beginning to see a few faces looking a bit confused, which is why you should turn your cameras on. So I'm going to pause here and look at our parking lot. So people from UD and Chigo, if you want to share the link to our parking lot. Again, I'm seeing some questions in the chat. We're using a parking lot this time. There's a document which you can put in your questions and that way we can keep track of them and answer them one after the other, if that's all right. Okay, so if you head over to the link I shared earlier on Yudi or Chigo, if you share that link, it's a Google Drive link where people can just go ask their questions. Of course, I'll try to pick your questions as well from the charts, but it gets a bit messy and we might miss a few. Okay, I found it. I'll share it. There you go. All right. Okay. Right, so that's, that's about the 60% tax trap. One, one of the big ways I mentioned the pension. Before I go into other ways of managing that 60 tax trap, I'd like to take a few questions. If anyone has got questions around those lines. The document itself, I Can see here. How do I apply for tax returns, gifts? Okay, we'll come back to that. I'm just going to answer the questions on the 60% tax drop, the areas I've addressed now. How do I maximize my NHS pension? Okay. Right. Okay. So someone asked here, how do I maximize my NHS pension? Yeah. Who are you here? Who's asked the question?

I did. My name is Ali.

I asked. Hi. Okay. Yeah. Okay, so how to maximize your NHS pension, basically? Do you mean how to pay the most you can into it?

I think overall, in terms of looking at the NHS pension and even other.

Sort of private avenues, to maximize totally how much one is earning through pension.

Or saving through pensions.

Lovely. Yeah, that makes sense now. Thank you for the question. So basically that's part of what I've explained to you. You can get up to that 60k is what you're allowed in a year, how, how to optimize it, how to maximize it. First of all, if you're in the NHS pension, you want to make sure you are paying the most you can afford to pay into the NHS pension the most they would allow you to pay in. And if you are a regular doctor, let's say a regular consultant, then there's a fixed percentage that's already being deducted. Okay, do we know what that fixed percentage is? Yeah. For your. Have you got your pay sleep?

No, I don't have it right now, but I think I usually say about 9.8% or something.

9.8%. So 9.8% is basically for. I'm going to say you're not yet a consultant or Jeep, is that correct?

A trainee?

Yeah, a trainee. Okay, that's good. So 9.8%. What's your specialty? What are you training for?

GP.

Oh, fantastic. Okay, that's great. I can't think of many other better specialties to train for, so welcome. Yeah. So 9.8 is what has been deducted. While you are sort of like a trainee. When you a consultant for the consultants here. Can you tell me what's the percentage that's been deducted into your pension? 12.5%. Yep. Now there's something different. Thank you, Stephanie. There's something different for GPs and GP partners is different because you pay as an employer. If you're a GP partner, you pay us an employee, you pay your 12.5%, but you also contribute to your pension as an employer. So you can pay both ways. Consultants don't have that flexibility. So you're Reg Kline is a red and does 12.5%. Yeah. That means you're earning quite a bit of money. Did you get, did you get the trs? So some people got trs, you've got some extra money. So it all based on how much you're earning as well. Okay, so basically how to optimize your NHS pension, Ali, if you see my video on the NHS pension, you know the NHS pension provides you a guaranteed salary for life so it's not affected by inflation. It also provides things like disability allowance and they can pay you if for instance the debt and service, I mean nobody hopes for that. But if there's debt in service, then the NHS pension has a payout as well. But the most important thing to note about the NHS pension is that selling the 9.8% you do pay into your pension, you could actually really ring up your pension and administration and ask them for if you can pay a bit more, it's not going to be that much, but then they can give you the opportunity to pay a bit more into that. That way there's less of your money coming to you, but more, there's also less of your money going to hmrc. Does that make sense, Ali?

Yes.

Okay, but that's not the end of it. Now if you really, really want to make use of the full pension allowance, you don't really have to make use of the whole 60, 50,000, let's say you want to make use of it as much as you can manage. The option there is to open a private pension. So if you've got a private pension like a SIP account. So SIP is self invested personal pension, then you can contribute more to that sip. If you've got extra money you want to pay into your pension and contribute to that sip, you can invest it. Either you invest it through an already made basket or if you know how to invest already, you can choose your own investment. We tend to suggest a well diversified broad index fund. I mean don't invest on unless you know what you're doing, but then you can have a separate private account, private pension that you pay into. And if you pay into it with your money that you've been paid as a salary doctor, you can claim back the money through your self assessment. Does that make sense or so yeah.

Is that last bit the private part.

That I'm not sure exactly how that.

Works different from investments, you know, like a SIP one. So I had just heard about the.

SIP one, I had gone around opening.

One recently, but I don't know about.

This other private one you just mentioned. So a SIP is a Private pension. So if you've got a sip, it's different from your workplace pension, it's self invested personal pension. So it's a type of private pension. So basically if you, if you've opened a sip, you've got a private pension now. So it's not controlled by the government, it's not controlled by your workplace. So that's a sip. Now let's say if your NHS pension, if the amount you're paying into it is 9.8%, I'm just going to use a random number. I'll say you, let's say any £900,000 in a year. Again, I'm using a random number here. So 9.8% of that is £9,800, is that correct? Yeah, lovely. Now, but you still have a whole allowance of £60,000 in a year. That's how much you allowed to pay into your pension, tax free. Does that make sense?

Yes, I get.

Lovely. So that the, the, the difference between that is what you can pay into your SIP after you've deducted your employer's payment into your pension. Because when you pay 9.8% into your pension, your employer pays a matching contribution. So your employer also pays into your pension. So the difference between what you yourself pay into your workplace pension and what your employer pays into your workplace pension. So the £60,000 is the difference. 60,000 minus what you pay and what your employer pays is the amount you can put into your pension and get tax relief on that. It's just hard because I can't see your face. So I can't see if I'm looking at your face, I can tell when it's clicking and when you're not. Fair.

Thank you very much.

Does that make sense now?

Yes, it does, it does. All right.

Okay. Do you know what? I'm just going to use the opportunity to answer some questions around seed, because I see some questions in the chat, but please, if you don't mind, if you use the parking lot that way to be a bit more organized. But since these questions are particularly about sip, just going to dip into them, if that's all right. Okay. Right, so I'm looking at. Yeah, so you had some questions you want to ask or.

Yeah, thank you so much for this. So, yeah, basically I'm just a little bit confused about sip because, you know, I haven't gotten into that yet. But I'm thinking, because this year I will go, I will go above, above 100k, even though I haven't done anything. Oh, but I don't want it. I just wanted to get below 100k really hard because I don't want to do locking, I don't want to do anything. I just want to be at home, you know, relax.

I understand your frustration because it makes some doctors who are really willing and ready to work they think why will I be working some more to pay more tax.

So yeah, so basically and then my curiosity just because I'm not good when it comes to you know, managing stock and shares and sin like 3 years ago I left my just just to give you an example, I, I put some some money on trading 212 on Apple and I and I delete the like trading 212 and after three years I realized that that money went up and I didn't realize how that happened but it's just crazy because I don't know how to manage this. But then now I realize oh gosh, this work without putting mine on that. So this is like the sort of money that think about basically. So my question with SIP coming back is that when we get a SIP with I have to open do we need to. Do we manage the investment on that SIP or is just a money that you put there and that gets self managed? I don't know if I'm making sense.

You're making a lot of sense and that's a very useful question and you've just taught us something which I'm going to share here. Thank you. Where are you based? Nigdalia.

Well I know base. I was in London before so when you were mentioning and London was killing me with 6060 trap and London was. And then I say I need to. So I just now moved to Scotland.

Yeah, all right. Were you the one who sent me a message? You said you found my stuff on chat GPT.

Yeah, yeah, yeah. Oh, you are on chat GPT.

Lovely to have you. I saw Scott like that. All right. Right. So you've left only Sonia in London. Okay then don't worry. Sorry, I'll meet you when I come to London. Right, but that was a very useful question. Thank you. First thing I want to share from what Dr. Scott Oja has shared. She left an investment and then came back and it's gone up. Some people come back and the money has also gone down. So there was a very lucky, lucky, lucky situation there. And also if you've done the right investments, if you leave it alone you're going to be better off than someone who is buying and selling every day. Buying and selling every day because when they are buying and Selling, they could make psychological mistakes. Sometimes they make errors. I've got like stocks I've owned for almost 20 years. So if they, if you bought a solid stock. But the only thing I would suggest if you want to go a step further is to learn how to invest. I mean we've got like a master class. That is four weeks. You finish that and that will be your skill. You've learned in 2025. You can become a confident investor. Some of them that attended the last master class, they are, they're here, maybe some of them will share their experience. It's very intense. You're not going to come out from it and not know how to invest. You come out from it, you know how to invest. But let's deal with your question. SIP is called self invested personal pension. As against NHS pension, NHS pension. We want to believe, we have the faith and hope that somebody sensible is managing it and the money is going to be there when we turn 68. Because in my last master class, a consultant, I think it was a cardiothoracic surgeon, asked me, how am I sure that I'm going to live to 68. Am I even sure that I'm going to get any money? I'm like, this is a fair question. I don't know the answer to whether you live to 68. But LHS pension, you have zero control. The only control you have is to leave or stay. Someone is managing, we hope they know what they are doing. We often they are going to pay you assisted. But in SIP is different. It's self invested personal pension, you manage it by yourself. Now, there are three ways you can manage SIPs. One is that you can if you're like me or any one of the people that have attended Investment Masterclass, you can choose your investment. You can decide, oh, I want to buy this investment. Now that might be individual stocks. For those who are comfortable and very safe to invest individual stocks or for most doctors are really busy, that could be broad, well diversified index fund. And I will explain index fund here. It could be like an etf. An index fund basically are not buying one company, they are buying a company combined or a basket of stocks. Okay, now just for anyone who doesn't understand index fund, this would be an opportunity to understand it clearly. Imagine football clubs. Let's say you've got a favorite football club. I don't know, Ruben, are you a football fan? Are you a big football fan? Or have you, have you got a club you like?

No, I'm not.

I'm glad I'm not the only one. Okay, who, who here has a club that they love, like football club love? Oh, we don't have any. Okay. Yeah, Cass said Real Madrid. Of course, man. You okay, right, let's just assume I'm going to go with my United. Anthony said Man United. Yeah. Anthony is a faithful Man United fan. Let's say you want to predict which club is going to win next year. Championship, European Championship. You can say, I'm just going to invest in Man United because that's the one that is going to win, you know. Or look at the Chelsea fans right here. You can say, man United is going to win. Or you can say, well, I'm not sure if Man United is going to win. I'm probably just going to assume that a club in the Premiership. For you football fans, you know, the Premiership is the top league in, in England, basically the top league in England. So you can either say, I'm going to invest in one club to win, or you can say, I'm going to just buy the top club. Now, buying individual stocks is like assuming that Man United is going to win. You don't know, maybe something might go wrong, they might get a crazy coach, somebody might have an injury, but if they win, you're likely to make more money, basically because you've chosen the winning horse or you've choosing the winning team. Index funding, on the other hand, is like, I don't know who wins. So I'm just going to buy this group. I'm thinking, oh, I'm either going to just buy La Liga as an index, I'm going to buy Premiership. So La Liga is basically the Spanish league, or you can buy like Premiership league, or you can say, I'm going to buy Serie A. So basically what you are doing is like, rather than taking a risk, it's one stock. You are buying a group of stock. Now let's bring it back to investment. S P500. Whenever you hear those jargon, S&P500 is just standard and Paul, 500 is the top 500 companies in the U.S. based on their size. So if you say, unlike me, you don't want to invest in Google or you don't want to invest in Nvidia, you just want to buy the top 500 companies. The advantage of that is that if it crashes, if one company has a problem, then it doesn't affect all your investment because you spread the investment. The risk is well diversified. Okay? Obviously S&P 500 is just the top 500 companies in the US. If you're thinking Companies like Apple, Coca Cola, Tesla, they're all in the S P500. Now just remember that the S P500 is just companies in the US so you are diversified but you're not diversified across countries. So. But some people will say, well, I don't care because those top 500 companies are in all the countries Apple is operating in all the countries that matter. Coca Cola in all the countries that matter. But yes, some people also buy a global index fund that's sort of like the, the top 1,000 or 2,000 companies. We're not going into specific products. I just want you to understand the concept. Is that making sense, McDalia?

Yeah, yeah, yeah.

So that's, that's step one. If you are investing by yourself, you can either invest in Index Fund ETFs, you can buy bonds with your SIP. You can even invest in property, commercial property if you know what you're doing. I know some of the doctors in our mastermind who actually invested in commercial property, you know, because they already experienced in that area. So that's SIP number one. Number two, you can say I don't want to do any of those investment. I'm going to buy what they call a target date fund. So a lot of the platform like Invest Engine is one I use. I think why I just like Invest Engine basically because their fees is now zero. It used to be 0.15%. Since Vanguard decided to introduce fees, they've lost a lot of their customer to Invest Engine. We've got a link as well with investing because they're offering doctors that come into our link £50 welcome. But you don't have to use our link or anything but Invest Engine is really good. You can post that link. Invest Engine is a platform that you can open a sip. Now if you go to a platform, whether I use Invest Engine or use Vanguard or any other platform you use, they have some already made baskets that you can select again. These things are not that difficult. Most doctors will figure it out. But part of what we do in the master, a mastermind is sort of you have those walkthrough sessions, you have the one on one. We do like four one on ones in a year, probably group sessions where you can actually this is the nitty gritty. This may be hard to do for 100 people on a call, but basically investing in and all this kind of platform forms, they actually create ports if they create those spots or target date funds now your goal will just be megdalia. I want to retire at 60 and that's your goal. So you just choose a port that basically let's say you're 35 or 40. Now you say this is 20 is my retirement goal. That's just the ports. Now the port have automatic instructions to invest your money for you in a way that by the time you are approaching 60, it will start taking safer decisions. For instance, it will be buying less stocks and buying more bonds. I said safe. I'll say less risky. I'll give you an example.

Sorry. And you just repeat that last sentence you said again about approaching who, who will start buying more bonds and is it the basket or so. Sorry, could you just explain that again?

Thank you. So it's automated. So those decisions are now automated. They're like instructions are already given. They are algorithmical instructions. So the automatic investment happened. Knowing that, look, you are planning to retire in the next 20 years. Okay, let's just say your retirement, your retirement goal is to retire in 20 years. So you might see that in year one you might invest all your money in talks. So what do you know about stocks? G, you are in the master class. So talks in terms of risk and return versus bonds. Can you just call us a little bit of stocks and bonds, risk and reward.

So in terms of risk and rewards with stock, make me proud. The, the, the rewards with stocks, the potential to have very high returns is there as well as the risk of maybe losing your money. Whereas, and it can be fast, you understand, like if your company does well, the shares can just rise quickly and then you can make some money. Whereas with bonds, it's just a steady and almost, you know, maybe it's the safest type of investment. If you want to see. Obviously there's Nothing that is 100% safety investment, but bonds is a slower way of investing your money. The returns are not as high, but the risk is much lower and it's quite steady.

Right. That's brilliant explanation. I'm already beaming with pride, basically. So stocks has a higher risk and also higher returns. Obviously your risk, you start, you start cutting down your risk. If you are doing things like investing in broad, well, diversified index fund, because now you're investing in a broad group rather than individual stocks. Okay, Right. So that's that. Now while this plan, if you buy a target date fund, it takes away the decision from you. I mean, you can always come back and change it. But what the target date fund is like, the goal is to make sure that at 60 years, when you want to retire, you've got your money sitting there for you. Most of it at Least so knowing that bonds, bonds, there's little or no risk of loss of your capital except the lender is unable to pay you. So if that fund is buying bonds, more of the bonds are just going to be paying you returns but they are less likely to go down in value compared to stocks. So you might see what will happen. Migdalia, when you're 40, is buying more stocks. It might allocate it based on 70, 30, 70 in stocks and 30 bonds. Now when you're 40, when you're 50, maybe it goes the other way. It increases the allocation to bonds and, and reduces the allocation to stocks. Maybe by the time you hit 60 years you might end up having just 20 in stocks and 80 in bonds. Again, I'm giving you rough numbers, but those target date funds, they are set up in that way to reduce your risk so that by the time you're nearing retirement you are, you're taking less risk and you're likely to have more money in your pocket. So that might work for someone who doesn't want any hands on approach. They don't want any investment. They don't, sorry, they don't want any time to put in any time in it. The downside is that sometimes when you're about to retire, you might have some extra cash and you might prefer to keep investing. But if he's making an automatic decision, it doesn't know that. It just knows that McDonald is retiring and he wants to put more of your money in bonds. Okay, does that make sense now?

Yeah, it makes sense now. And is there like the difference? I, I was reading into, I was like watching and reading on one of your, on your website that you know that a few of them, you know, there's difference on the fee difference on the, you know, on the type of investment included within the si. Into the seat. And is there any one that you prefer more over the others? Let's say like more bangwards or, or invest, invest engine than others, you know?

Yeah, I think that's a, that's a very decent question again but before I answer that, can I check with you Chi. The explanation. Did you get it?

Me, myself.

No, no. Chi, you're asking me to explain the last point.

Oh, hi. Sorry Andy. Are you referring to me?

Yes. Yeah, yeah.

So my, I thought, I think I understand but what I want to clarify, I think understand what you said. What I want to clarify is that the person that is making these automatic decisions is the basket that you've bought and is the age you set by yourself. Okay, cool. That's it.

I understand. That's correct. Thank you. Excellent. So just, just to make sure we are all still on the same page, there are two things I've said. One is you can invest by yourself, make the decision by yourself. That's the goal, that's the point. If you've done investment master class, you should know what you're doing. You'll be able to set your investment. You don't need to be checking. I don't go and check my investment every day. I might check every quarter, but not something you have to be checking every day. That's number one. Number two, you can just buy a basket, for instance. You can get like, let's say a basket basically, which will just, you know, the point of the basket will be to help you to make those automatic decisions without you having to think about it. Then the third option, which I'm not a big fan of, basically because that third option is like you pay somebody and they manage your money for you. So that could be an option. You could pay somebody and they manage your money for you. Most of the platform provide that option as well and they charge you more money for that. Basically. When it comes to investment, if you are doing a well diversified broad index fund, you're not doing anything special. Basically you're just investing your money. You're just hoping for the market to carry your money and grow it so you're taking less risk. You're going to end up with the same returns as everyone else. You're going to be average. And average is very good because 99% of full time expat professional investors don't even beat the average returns. Written an article on that. Okay, so these are the three options. Number one, you can invest by yourself. This applies to both SIP and stock and shares. Isa, you can invest by yourself. You can invest through like an already made basket. That's the target deed fund. Number three, you can pay the platform to get people to manage your funds for you. Number three, I think is the worst. And that's where people like financial advisors and all the rest of them, they charge you money and they charge you 1%, 2%. Because I think it's a bit of a scam. Because if you, if you charge me 1%, it's not a scam anyway because they didn't force anybody. But if you charge me 1%, then check what that 1% will be compounded over 20 years. For today it looks like 1%, but by the time you put in 100, Sonia doesn't like it. At all. I can see the way she's shaking her head. I wish everyone had their camera. So there's a lot of compounding that happens. You don't know, over time. There's a calculator, probably. I'll build another calculator for us to use it to calculate how much those fees will cost you. It might actually cost you one extra year of work because you're just paying somebody 1%. You might think it's 1% of 100,000, but next is 1% of 120,000. Next is 1% of 140,000. They eventually pay quite a lot. I've seen some that charge 3%. And it's very funny because some of our big medical organizations are recommending them. A lot of times they are restricted advisors as well. All right, let me not go into all of that, but basically, you understand the three options to invest make. Dalia, does it make sense?

Yes. More clear. More clear now with. With a sip.

Lovely. Right, what I'm gonna do. And before the end of the video, I think I've got some videos on investing, but there's also this investment. Jaguar Buster is a free. Is a free guide I've done. You know, when we talk about s P500 bonds and all those things, sometimes they make it seem so complex. It's not complex. I've done a Dragon Buster. I will find it before the end of the session. And some of you that read my email, you might already have it. It will explain all this term, for instance, we hear guilt. Guilt. You know, and then I said, oh, my God. I just understood the compounding charges. Do you mind just telling us back what you understood about the compounding charges? I like it seems like suddenly, like a flash of brilliance. Anybody that understands it doesn't want to pay fees anymore. What did you get from it? Do you want to share? All right. Don't worry.

No, I just. I just realized that one of my investments with Hardwick Lansdowne, they're charging me a remarkable amount. Percentage. I didn't really bother about it too much.

How about till now?

I just. I just understood it just now when you said it. If I.

It.

Because I looked at him like, okay, it's not too much, but if I look at the grand scheme of things, and over time, it's actually going to be a lot.

Yeah, it's massive. You're in the community. I'll share the calculator. Maybe I'll email it out as well so you guys can calculate for yourself. Now, here's the deal, some adana, some advisors, financial advisors, because that's what they are paid to do. You can now tell that I'm not a big, I don't have big fans in the financial advisor community, but I don't write my content for them. I write product. Some financial advisors who say but the person might get a better return for you my investment. So the question is, are they really getting a better return? Because if we check it all right, so last year I got 78 return but I manage my own money, so I'm not taking it. Any risk I take is for myself but I'm not like a massive pension investor and I also don't take people's money to manage for them. The average financial advisor, if you go and check, I've done an article on it, but don't take my article. Look at the data. 99 of our active investors perform worse than the S P 500 over time. So if you check it, what are they doing in addition that makes them to be able to charge that money. It's just the difference is just what you know and what you don't know. And sometimes that's why I say if you can put in like four hours to learn how to invest. If you can put in 24 hours is too small. But if you put in 20 hours, four hours, four hours for over four weeks, thereabouts. Learn how to invest is a skill you can use for your whole life basically. And that saves you quite a bit of money. And even if you know you don't have to be like an investment, like you don't need to be any good or anything even just knowing how to Click here, click there. Put my money in index fund. As long as you understand asset allocation, risk management, how much you do be putting your stocks, how much should you put in bonds? Well, I like, I like that, I like that the way the penny dropped and you like you didn't want to wait. What? Who's taking my money? I'm sure that Hagris lamps down whatever, they're not going to be happy when they see this but well, you deserve to know is your money right? I'm just going to crack on because we've gone from sip and entered investing. But there are a few more questions. I'll take a couple more questions then I'll go to the parking lot and answer some questions. Someone said, oh, the link is not working. I'm sure my team will sort that out or I'll send it out in the mail later. Someone said, can you have Sorry, I'm just trying to get out the questions here. What's the difference between stockisa and sip? That's a very useful question. I'm glad you guys are answering some of these questions because we did some of the things we're going to have to deal with later. So can you. The difference in stock ISA and SIP is quite a lot. Basically, remember your stock, your Stock and shares ISA, you've got 20,000pounds allowance. The maximum you can put in all your ISAs for the year is 20,000pounds. Is that. Is that clear now? Because some of you are saying 40, 000 in the quiz at the beginning. Is it clear to everybody? Just give me a thumbs up if you know it's 20, 000. Like I'm putting your stock and shares. I said, okay, thank you. So that includes all, all your ISOs. If you've got like Lifetime ISA, if you've got like stock and shares, ISA, Cash ISA, then all of it. The maximum you can put in this in a tax here is 20,000. Is that clear that. That bit is clear. Right. Now, the sip, on the other hand, is your pension. The maximum you can put in your pension, all your pension, including your NHS pension, salary, sacrifice or even if you worked elsewhere, the total you can put in is 20, 000 pounds. So there's a difference in amount. Now there's a difference in your style of when you can assess the money, your stock and shares. I say you can decide to close it now and take out all your money, just sell the shares and that's it. Your SIP you cannot assess because it's pension. You cannot get it till you have 50. What age are you getting your sip? 57, I think. 57. Okay, well.

Four years time.

Okay. Rebel is in the future. Thank you. It's. Thank you, Ruben and Ada. So it's still 55. Oh, is it? Okay, it's still 55. I think you're correct because before any of us get to 57, I don't think anyone here is 57. And if you are 57, I on this call, you are looking really good. You share with me your secret to youth. But 57 is the new. They will change it in 2028 to 57 years. Yeah. But for now it's 55, so that's.

Hopefully it will remain at 57. Hopefully remain at 57 by the time we reach that time.

Fingers crossed, right? Fingers crossed.

They may still increase it.

They might increase it, to be honest. That's the thing. But they are less likely to increase it. Like the NHS pension. So what? The NHS pension for you and for me is 68 years. That's when you can get it. The eight years is 55 or 57 later on. State pension I think is 60 years. So these are some of the differences with stock and shares isa, you can get it anytime you want, you're totally in charge of it. But the maximum you can put in is 20k. Now the other difference between stock and shares ISA and SIP. In stock and shares ISA, remember, you are paying into your stock and shares ISA with your money that has already been taxed. There's no tax relief on it. You've already made the money, you've paid taxes on it. It's so nice when people have their camera on because I'm seeing them nodding and I'm understanding that it's making sense. So stock and shares isa, you've already paid tax on it and that money has already been taxed, Then you invest. So you're not getting. The government is not being your daddy. In that case, the government is not doing anything for you. However, any money invest through the stock and share licer, no matter the returns you get on it, there's no tax on it. Does that make sense? Okay, good. So if you invest money in with your stock and share dicer, even if you turn out, let's say you invested 20k and then over 20 years it grows to be 400k. Normally you should have been paying tax on it. It's called capital gains tax. So if you invest in the stock market, and some of you who read my, who read my previous email just before the Halloween budget, you know, the die said I was selling all my shares. That was not an isa. That was because they were about to raise the tax and I sold all those shares. The next two days they increased the tax taxes. So there's something called capital gains tax. And some of you, some of the words you mentioned, when I said, how does tax make you feel at the beginning, some of you said annoying, different things. Now, when you become an investor, there's one more task called capital gains tax. If you invest money in the stock market, if you make any money the government owns a percentage of that is even higher. If it's residential property, you are selling a property, you pay 24 on residential property as well, capital gains tax. So these are taxes that you pay if you make a profit. Now, with an ISA account, if you make a profit or not, I mean, if you make a capital gains, you don't pay Any tax on it. So any money you put into that ISA is tax free. So that's why I say, before you start investing, don't just invest in a regular account, invest through an ISA until you've exhausted your ISA allowance, which is what amount? Can somebody help me? How much did isa allowance?

20,000.

Lillian, what a superstar. You just joined and you're already giving us great responses. Yeah, thank you. Now, basically, capital gains tax will not apply on whatever is in your isa, but in your SIP is all together different. You're already getting the pension tax relief because you're allowed to put up to 60,000 in a year, tax free. So if you put in money that's including your workplace pension, if you invest through your sip, as if the government is contributing money for you to invest with, because they would have taken out that money from your taxes as taxes, but they didn't take out that money either through your workplace pension or you claim it back to your self assessment. So as I see, the government actually contributed to your investment port. So does that make it clear in terms of SIP versus isa? Lovely.

Quick question now that you, you mentioned, you say, let's say if someone get above 100k, let's say 105k, you can put, you don't have NHS pension, you can put that 5k extra into your sip and then in your self assessment return, you, you explain, oh, I have, I have put like this 5k as part of my on my sip, isn't it? And that worse.

That is bang on. Exactly. I think you've gotten it now. So they're going to give you relief, like they're going to give you relief at the marginal rate. So that extra money you put into your pension, you get tax relief on it. It's even different, McDalia, if you're like Adahia, if you got a limited company like me as well, you can just pay directly from your limited company and pay into your pension or you can pay from your limited company into your personal account and then pay from your personal account into your sip.

Yeah.

Remember with limited company you spend money first and then you pay taxes. So that will be counted as an expense.

Fair enough. No, like the reason I, I gave up on the nhs, it's just because I'm not considering to stay in the UK forever. And then I say, okay, what is the point of being on the nhs? I may need to go back because, you know, it's just like otherwise you get taxed, you know, more.

Where do you plan to go back to? Is it can you take me?

Yeah. Is it warm, easy life after 50, 40.

Where are you going, then? Okay. If you feel comfortable with sharing.

Lot of sun and I can get vitamin D a lot, you know.

How much? All right. Thank you so much for making us all jealous. Yeah. So basically, NHS pension, that's a different discussion. Because some people say they pull out of the NHS pension because they're not sure they're going to leave uk. I'm like. But you haven't left. Right. So if you're a salaried person, are you in a salary job? Are you in a salary job?

Yeah, I'm in a salary job. I work as a senior. Rash. Yeah. In neurosurgeries.

Yes. What it means make, Dalia, is that your. Your employer is not contributing to your pension, so you are the only one who is actually contributing to your pension. So if you're in the nhs, and of course, I'm not making a case for staying in the NHS pension, but I'm just telling you what you miss out. Basically, you find one of those. My videos, NHS pension, what you should do, what you should consider before you leave. So your employer is supposed to be paying you some more money, you know, and they're paying you now and they should pay you for your future. So they're only paying you now. They're not paying for your future, they're supposed to be contributing to your NHS pension.

Yeah.

Secondly, if you're not in the NHS pension, you are paying more tax because you. More of your money is coming to you. And guess what? That gives HMRC more access to taxi. A bit more. But if more of your money has got. Some of your money has gone to NHS pension, then that's not accessible to hmrc. Yeah, Facts a bit like. It's like money and tax. Like a fish. A fish in the water that is below surface is a bit harder to shoot or to get or to hook or whatever. Once it comes up, it's easier to cut the same with money. If your money has gone from your employer to your NHS pension or salary sacrifice, it's not yet come to the surface. It cannot be taxed the same thing. If you run a limited company, you're running some expenses. I'll give you an example. You're not a limited company. You claim your gmc, you claim maybe your company needs an electric car. I'm sure some of you already know this. You can buy an electric car for your company as long as your company needs it. I can show it. You pay through that. It's still expensive. There's no tax on that. Let's say you hire an admin, like you need an admin to help you for your work, you pay them cash. It's still expenses is where you make a dividend. It comes to the surface. That's what you get taxed on. The same thing with you. So I think you should really think carefully about this NHS pension thing, because in addition, there's also debt in service benefits and also things like a disability allowance. I'm not saying that NHS pension is perfect, but I'm like, if I was a salary doctor, I'll be in NHS pension, basically, because I want them to be paying me both ways. Have a think about it. I can see UD has kindly posted that video. Should I leave the NHS pension or should I opt out? Have a read about it. And of course, if there's something you're not sure, even if it's not answered in this session, if you put it in the parking lot and you can ask directly under the video or blog or wherever you read it. I know you sent me quite a few messages. I do try to reply, but I'm not very good with DMS now because I know you've got like, 67 in a day.

Can I say something to Mitali regarding nhs?

Thank you so much. Yeah, sorry to you're saying.

Yeah, I said, can I say something to Mitali regarding NHS pension?

Yeah, of course.

Even if you're not going to be here in the uk, you know, later on, any money you've paid into your NHS pension, when you get to the pensionable age, you're still able to claim that money going forward. So you can also look at it as money you've put in a bank somewhere that you cannot touch until you get to pension age. So it's actually still not a waste. You can claim it going forward. That's what I wanted to say. So I do. I think it's just so long as NHS pension still is viable at that time and they've not changed things or changed the goal post, I think it's still worth doing it. That's my own take on it.

You can see me being in pride. Yeah. So actually that's just the fact. Right. She's a consultant here in the NHS and she's also been through our master class. So basically, also, even if you move to another country, how many of us know somebody in another country that is getting money from their pension in the uk?

Just me.

Every one of us. I know. I know people who are actually getting Money they paid. They've actually left the energy and they're still getting money. Yeah. I think we've got a couple of questions here. She. Your hand has been raised to the OGO and Kinsley. We just take those questions, then we'll go to the parking lot and look at some of the questions there. She. Do you want to go first?

Yeah, I just wanted to ask, like when you're collecting the pension at the end, whether the NHS pension or sip, it will be taxed, I'm. I suppose, isn't it?

Yes.

So even though you are saving, you're not being taxed now, but at the end it will still be taxed.

That is very important question and I'll answer our Justin in two ways. One, do you want to be taxed now or do you want to be taxed in the future?

In the future.

In the future. Why? Just tell me why. Why would you want to detect in the future, not now?

Well, hopefully I need. I need more money now. Like by then I have less expenses, I guess so.

That's brilliant. Okay. Why else? Adana hinted at something some around the time. There's one word she said she was referring to something and she was referring to fees, the compounding interest. That's fantastic. So. So compounding can work against you, can work for you. Like your. Now your compound is working against you at Dana because they are being charged fees and it's compounding against you. But the same thing, if you are delaying charging me pension, what's happening instead of the nhs, instead of the HMRC to take out that tax, let's say the tax you're going to be taxed is 40 or whatever. And someone mentioned want to be paid in the future so that you can, you can avoid the 60 tax trap. So that is also a brilliant reason, Stephanie. Thank you for mentioning it. But one big reason is compounding. Let's say that you are. You've got like 40 coming out every year now that 40 that is not being taken. Or let's say 20 that the HMRC is giving you relief and what is it doing? It's going back into your investment, it's compounding into your future. It's going back into your investment, it's compounding into your future. I'll give you some numbers. Let's say she, you're getting like 100k in a year, HMRC charges you 40 and then maybe the. On the other hand, someone else is not getting that same tax, so you have 60, 000 left at the end of the year. The other person has a hundred thousand. Next year you are investing your 60 000. I'm assuming you didn't take out any money. Next you invest 60,000. Guess what? I'm investing 100,000. Let's say the next day. Again, let's say our hundred thousand. Let's just assume that we are both of equal ability and we are lucky and the money doubles. Your money goes from 60,000 to 120 000. Mine goes from 100,000 to 200,000. Guess what? Your money is 120,000. Guess who wants 40%? The tax man. And they're able to get 40% of 120,000 out. I don't want to do public math, but I believe that should be about 48,000. Is that correct? 48,000. That's 40% they're taking out. That's 12 by 4. 40% goes out again. So you're ending up with 120000 minus 48, 000, whatever that amount is. And that's the amount you've got to invest for the next year. Meanwhile, what do I have? I have my whole 200 000. So it's like you're on the back foot all the time. Let's do that. Over 20 years, you're going to be far away from where I am. Compounding is hard for the human brain to comprehend. That's why calculus. So that's why I want to pay my tax in the future. Not just because I need the money now, but I want to pay the tax if possible. If somebody says let me pay tax in the future. Even in the US they've got a special tax in real estate. They call it them the 1035 exchange. So you can buy a house rather. When you sell a house, rather than pay tax on it, you just use all the money from that house. Buy a bigger house, and then you don't pay any tax. You just keep deferring the tax. Maybe before you die you might not have like an estate. And then that's when you want to pay tax on it. That's when people then donate it to a trust and then never pay tax on it. But let's. Let's just keep it simple. If you pay tax in the future, that means the government is your daddy. The government is giving you part of the time they should have collected from now, giving it to you to invest for your future. That's why we want to pay. Even the expansion you can pay in the end. Now the big question is, do you really pay that tax in the end. I think America and I chatted about this. America is in. The mastermind is the gp. Many people who actually structure their finances very well because in the uk, it's information, they eventually don't pay a lot of that tax. Why? Because when you withdraw your pension at the end 25%, you can withdraw tax free. Again, this is going a bit deeper into things, but most people get something called the lump sum. And if you withdraw 25%, imagine that at the end your SIP payout is £1,000,000, or let's just say £400,000. You can take out a hundred thousand tax free. And then the next year, if you want to withdraw, you're going to be now taxed as if that's your income. So any money you are withdrawing after that is like your income. Guess what? Some people will be withdrawing £12,570, which is basically my salary now as a director of a company. And it's tax free. Dana, it sounds like that's your salary as well. You're smiling. Basically. So some other people withdraw 50k to keep their taxes at 20%. Some people might not need to withdraw more than 12, 570, because guess what, just because you are 57 doesn't mean you don't have other income. You might still have income coming in from your other investments or from work, if you're still working. But again, that's where tax planning comes in. So I rather discuss about paying those taxes in the future. That's one advantage of sip. I, I hope that makes sense.

Yes. Thank you very much.

Lovely. And you had a question. Casey, did you still have a question or no? No, I think it's been answered along the line. So that's lovely. Thank you so much. Can I just ask you guys, I'm not trying to be a pain, but it just makes the session to flow better. If you go to the parking lot and just put your name next to your question. Because now I'm seeing the questions and I don't really know who has the question or, or whatever. Don't worry. We are using this parking lot team for the first time. So you're figuring it out. If you put a question in the parking lot, just put your name there. And in the, in the meantime, I'm just going to answer a few other questions here. Okay, so that's a lot on SIP already. Believe you me. There's so much more we could deal with on sip, but just because we've got limited time, if you read the Guide. If you're not clear on any questions, email me or write on the blog or YouTube video. Or if you're in the community, obviously we have the master class. You can always ask questions in your one on one session or in the group sessions. Yes. Here's something quick and useful. If you ever wonder what your actual, actual take home pay is after taxes, ni pension deductions, or you just not sure how paying money to your pension will affect your take home pay, our free NHS salary calculator will give you a clear instant breakdown. It's perfect for planning your finances, checking deductions or even spotting overpayments. And helping you determine how any changes in your pension contributions can affect your take home pay. Want to make sure you're taking enough home now? It's easy to use and it's stealth for NHS professionals like you. You can try it now for free on nhsssalary calculator.com. so it's NHS salary calculator.com. the link is in the description. Now let's dive right back into the episode. Right, so the ISA allowance is, I think Blessing is asking, is the ISA allowance 20k maximum and does it also compound? So your ISA, you are allowed £20,000 per taxi. That's the maximum. You can put the tax here and can somebody help me out here please? When does the taxi start?

April.

April 5th. Okay, Sixth of April. Okay, that's good.

No, sixth.

Sixth of April, number six. That's important. Six. Thank you. So the taxes start on. So all the questions like I may miss your question. If you are typing it in the box, put it in the parking lot and put your name. We'll come to it. So the taxi starts at April 6th. It ends April 5th. So your ISA allowance is April to April from April 6th to April 5th. If you miss your SIP. For instance, if you just said about SIP on your tax allowance and order. I'm sorry, your sip, your pension allowance. If you feel, oh, I've missed this thing, I've not been contributing. You can do carry forward. There's something called carry forward you can still claim for three years back. So that's something some people do. Especially like I've got like some consultants are working in London in Harley street. They made some big private practice money letting out. What am I gonna do? Some of them are able to do carry forward. Okay then. But when it comes to Isaac is use it or lose it. If you don't use it in that taxi, it's gone. You can't come back and use it Again, so many people only find out after April 5th. Once April 5th passes, you can't use that ISA again. So that's why it's really important to understand ISAs clearly. Now, ISAs themselves, the maximum you can put in a tax here is £20,000. Okay, now, how do you distribute this £20,000? If you're. If you're still a young dude, I can see Kinsley in the picture, you know, full of energy, life, and you're less than 40. 40 years. I'm less than 40 years, but I'm almost there. Okay, if you are less than 40 years, you can use the Lifetime ISA. So the lifestyle mindset allows you to put up to £4,000 in a tax year. So if you put up to £4,000 in the taxi, the government gives you an extra £1,000, actually a bonus for you. Basically 25 of what you put in the Lifetime ISA. The government can actually give you 25 of that. So basically that's a lifetime asset for you, but that lifetime is still part of your whole ISA allowance. Okay, and that's. That bit is there. Now, the lifetime ISA can only be used for two things, buying your first home or investing for retirement. Okay, update is there good. Now, one thing to remember is that if you buy a house above450,000 pounds, then you can't use the Lifetime ISA. You live in London, if you live in the Southwest like me, these are the things you need to keep. If you buy a house that's about 450k, you can't use it, you can't use the light hammers. However, I use the lifetime ISA for retirement. And as long as the. As far as the lifetime is concerned, retirement age is what age? Can somebody help me out here? 60. 60 years.

60.

60. Thank you. So are you seeing the retirement is not retirement, like, for different. There are different ages for retirement. So you come to Steve, you're talking 55, you're talking 57 lifetime, I'm talking 60. The pension is 60. NHS venture is 68. So when someone says retirement, ask them, what retirement in particular are you talking about? And of course, for some of you as well, you're aiming to return far earlier than that, like 50, 56. Different ages. So not everyone wants to retire at the same time. That's with the ISA. Now, I've only talked about the Lifetime ISA. It's just one of the ISAs. There are four of them. I think three of them are relevant. Yes, I'm going to talk about those three. Lifetime is a Maximum you can do is fork one ISA hack. If you're married or if you've got a partner, you can each do 4k each and you still get like the 1000, both of you. And you can use it towards buying your first phone. Because if you leave the UK, can't contribute more to the ISA. And once you cross 50 years of age, you can't put more money to the isa. The big mistake many people are doing is after they buy their first house, they don't realize they can still use the lifetime Isaac, the investor's retirement, and also get that extra £1,000 from the government. So they stop the second big mistake. That will be what this session for you. If you already have a lifetime ISA is that a lot of people leave their lifetime. I sign cash. I mean, if I'm buying my first house, then I want to leave my lifetime outside cash. I don't want to put it in the market. I don't know, the market goes up and down. You know, it might be that when I needed to buy my house, the market is down. But if you bought your first house and you're not now looking at retirement and you're only 40 or 41 or 38 or whatever age you are, then you probably are looking another 20 years. If you leave your money lying around in cash, then inflation basically just sort of like messes you up, isn't it? But the inflation, your money is not growing faster than inflation. The value of that money is going to be far less than what it is in 20 years. So in my case, my lifetime ISA is not in cash, it's in stock and shares. So don't confuse it with stock and shares isa, which is the next one I'll tell you about. So I'll tell you about the lifetime isa. And there are two types. The lifetime is a cash, the lifetime Isaac and shares Lifetime ISA, any type. You can't open it above 40, so you want to do it before your faulty. If you're above 40, that doesn't mean you can't have a light and ISA. But you can't have the lifetime ISA, you can have other types of isolation. Is there any confusion on that so far? Just on that point. Okay, please, it's not a confusion, just a quick question. Yeah, sure. So you did mention like still using the Lisa even after using it for mortgage, you can still keep contributing and you just use yourself as an example that instead of just leaving it there as cash, you rather put it into stock. So you know, like, so I can still make A profit on its own rather than inflation creeping in on the cash you've left it. Yeah. Now, does that mean that after each financial year you take the money out and put into stock or how do you move that from Liza to stock, if that makes sense. Okay, that's a very good question. So basically, if the same way you deal with your any investment account, if you have a lifetime isa, once you buy your first house, you notify the platform that you want to change from Lithom Isaac cash to lifetime asset stock and shares. If they don't have lifetime shares, you can just ask them to move it to another platform that provide lifetime ISA stock and shares. And again, thank you for. That's a very important question because it links to Blessings Christian. It says, what happens to the money after putting. After putting it in? Is it being invested by the ISA people? I like how you think that there are some ISA people. That's so cute. Yeah, but that's a very relevant question because Blessing, a lot of people are making the same mistake in the uk they just put their money in the ISA and think it's working for them. No, ISA is just like a tax wrapper. It's just a tax protector. And that ISA doesn't invest your money for you. It just means that if you're putting money through that isa, you can invest it without any taxes based on your returns, including your dividends and your capital gains. Yeah. Thank you for that question. But if you ask me, how do you invest your isa, I'll take you back to what we already explained. That came from McDonald's question, how do you invest? You can invest by yourself if you know what you're doing. You can buy broad, well diversified index 1 or individual stocks, depending on your skills or bonds or whatever. You can buy into a Target date fund that actually invests with a goal. You set your goal for investing. Or you can pay somebody to invest your money, which is the one I'm not a big fan of. All right. Okay. Now, I think some people have actually put down their name on the parking lot. I'm just going to look at some of the questions there.

Sorry, please, can I ask the question before we go to the parking lot?

Okay, sure. You're fine.

Thank you. Yeah, so my question is that it's still bothering on this isa because I'm just very green to all these investment things and I don't really know much about it, but I want to know. So like my bank, for instance, Monzo, there was a time it was advertised ISA stocks and stuff. Like that and I think I went for. There's this one they called ISA stocks and shares. So what I do is I throw in my small, small pennies as like monthly into the pot. It's called an investment pot. So I don't really understand is it that the money is not working in.

The pot is not money is not.

Working at all for me and I need to invest it personally or because I'm looking at the pot now and I'm seeing that they said up by so, so percent things investing. So like in this case, is it the bank that is investing this my own isa? Or I may be confused because I was thinking that as I'm. That as I have this stocks and shares ISA account with Monzo that they're investing for me. So I just need a clarification on that.

Thank you. That's a relevant question. A lot of people are confused about things like that as well. Monzo, if you've indicated for them to invest for you, they will invest for you. But you're not in control, you don't know what they're doing. Yeah, you don't know if they're investing in your own interest. A lot of times people also say, well if you have that sort of strategy you will not be, you will not be bold enough to invest as well as you should. For instance, part of what we teach in the Mastermind is that you should be looking to invest 15 to 20% of your income so that you can get quickly to your financial destiny, your freedom. If you're looking to achieve financial freedom at the point where your passive income pays for your life, you can't just put in £20 now, £10 there because that's what you do. Because you're not sure what they are doing. But if you're already, you're following the steps, you save the emergency fund and you have your emergency fund in place, you have your income protection, you have your life insurance and you've done those seven things. I don't know, can somebody from my team share that resource? 7 things you need to do before you start investing. So you guys can download it, look at it. If you have those things in place like some of you here have, especially those of you I'm seeing that I've had a one on one sessions with. If you've gotten to that point then you start investing more thoughtfully, investing with more intention, then you not just be putting like any penny or anything because you know that you have a clear plan now regarding investing Monzo, I don't know which pack you which package you've got. But most of the banks will offer you some sort of investment. Let us invest your money. A lot of it is absolute garbage. A lot of it. Why? Because basically like there are fees that are hidden there. They're getting the same returns as S P500 or the broad market index. Sometimes they are doing worse. The question is why don't you check and find out if your bank is doing better? I doubt it than the general market. Are the fees justified? Again, we are limited in time but basically this is what we delve into for four weeks for the masterclass which is part of the mastermind. We're saying master too much time here. But basically you need to get a good grasp of it and once you have the knowledge you could be able to navigate things around. If you ask me what should be the next step. Next step I think you should do blessing is to go and look at your bank fees. Check how much of the fees they are charging you on that platform. I could not just check and say oh it's compound and agriflams now has been around for a while. Check what are the fees are they charging you? And maybe just ask them why are we charging these fees? If they tell you it's because you're investing your money. Ask them are you doing better than the market average? You know and it would be interesting to hear what they say. They're going to speak a lot of grammar but again math don't lie. You can talk about anything with a lot of words but mass don't lie. Okay, Right. Okay. Before.

I'm really interested in learning things. This master class you talk about, what.

Does he intel, right people my team you can share. There's a waiting list now the master unfortunately the mastermind is now full. I know it sounds unfair because some of you are hearing about it for the first time but also there are people that have been waiting for it. So when I released the list earlier we are planning to launch it in January. I will release the list in December. Wanted to do the deal with 20 doctors and we had 181 today is 189 people on the waiting list. If you share the list, there's a waiting list now for the mastermind. I've decided to open five extra slots. Basically one because of the number of people on the waiting list and two, I've hired two staff. So because I've got like staff now helping me before I tell well I can't manage 20 people. What it entails is one you'll be part of a private group. And that private group, basically you work with me for the next 12 months, learn how to invest, you learn how to manage your taxes in a structured way and you have other people in the group as well. I'll just give you an example. One of the people in the group is Vanessa. Vanessa used to be an investment banker, she's now a doctor and she's been following me on LinkedIn. Obviously I'm not teaching her anything new on investing. Her own need is in taxes, how to optimize her taxes. And of course we've got other people in the Mastermind. We've got like Kingsley here who is an excellent senior physiotherapist who's an invest, learning how to invest, learning how to master his taxes and all the rest of it. So the Mastermind will involve a four weeks investment master class where we go through investing assets, stocks, bonds, different things, understand their risk. We're not going to talk about it just like that, we're going to practicalize it. You're going to open your account and the Mastermind will also involve four sessions, one on one sessions with me. We're not going to do that four sessions again in a Mastermind, basically because it consumes all my time. If I meet with 20 people four times in a year, that means 80 sessions, 80 hours. So that's the Mastermind. It also involves, it also involves things like basically the classes. So we've got, apart from Investment Master class, we've got a class in March that is called before the Taxi ends, it's called the Tax X ray session because we want to sort of like check, is there any way I'm missing taxes? And it's 20, 25 people, so you can get quite detailed about it to check. Are you claiming or are you using all your isa? Are you claiming tax relief? Have you used up your sip? Is there any way you're missing taxes? Have you spent what you can spend from a limited company? So that's part of the Mastermind. And in addition to that obviously you'll be a member of the private group. The private group. Here we discuss things are. I used to say they are a bit too hot to discuss publicly because none of it is illegal. But sometimes people misunderstand stuff. So that's what the Mastermind is for. If you're interested in the Mastermind, what I'll say is you should join the waiting list, probably. The sessions are starting tomorrow, tomorrow evening. So the first session is tomorrow evening. It's just a welcome Introductory sessions. But already some people in the Mastermind has already done their one to one session. I think I've met with you, Kingsley, I met with a few other people here. You're going to have four in a year. So basically that's what the Mastermind is. Does that make sense? Yeah, lovely. Right, so I'm just going to jump into the question. You know this session is not, is not to, is not to talk so much about the Mastermind because it's already kind of like we've got like 20 people, it's already full. Two more people join this week basically because they sent me so many DMs and they said they were interested. They said they didn't hear about it. They say, yeah, it went to their spam. So I opened up five more slots. So now I've got three of those slots left. So I do want to talk so much about the Mastermind in the session. I know I mentioned it, but the waiting list is there. You do share the waiting list or the barcode. Anyone that wants to sort of like go and I have to take a quiz. Not everyone that applied got in because there's a minimum that we need. We need to get that sort of like be sure that you're right fit for the Mastermind. So if you see the link to the score app, you can take the quiz and then join the waiting list. You could also share the group. I mean if you're not able to get through to the quiz or you don't hear anything, you can send a message to the group. We've got like a group. You can actually send me a message through the WhatsApp link. Right, well bless, I hope that helps. Right, okay, so the, the one of the questions here someone asked, what is the difference between SIP and salary sacrifice? Okay, whose question is that? SIP and salary sacrifice. That was you? Okay. Okay, thank you.

So we had one more question as, because we're still on this. So you know when you were talking about the lifetime isa, you've already bought your house so you can't do that. So. But you now want to start investing. Like I said, would the government still be giving you 1000 on the 4000 maximum every year if it's a, if it's an investment not for property anymore?

Absolutely. If the lifetime, I say you still get that £1,000, you get out 25%. So that's that part that most people don't realize. And guess what? The government doesn't go around and tell you about it. Nobody bothers. Because if the more people know, more people will get the money. Yes. So you can still continue to get that £1,000 and you can be using it to invest. Okay. Is that clear?

Yeah, that's clear. Thank you.

Lovely. I know we're running over a little bit. I told my people I'll be finishing by 10, but I can't stay till 10:30 so I can cross through some of the questions. We've got another 15 minutes to go. Right, so you asked about the difference between salary sacrifice and the difference in salary sacrifice and sip. So salary sacrifice is basically in your workplace, you can be contributing it to your extra money, to your NHS pension. Who has done a salary sacrifice here? Has anyone done a salary sacrifice before?

I have.

You have. Okay. You have. So what did you use it to buy? Car?

Nothing. I was just saying.

All right, so you're the wisest salary sacrifice I've seen. Most people do salary sacrifice to buy a big car and that's not bad. I like cars. I have a nice one as well. I think my own is not that bad. But salary sacrifice is basically, you want to pay more into your pension and for some people, they want to pay more to buy a car. I know at some point whether RCGP was doing Volvo, I'm like, is your future? And basically. But some other people can also say, no, I want to sacrifice more of my salary into my pension. And that reduces the tax you have to pay. Remember what we explained earlier on, if more of your money goes into your pension, then there's less of it for the HMRC to tax. Does that make sense?

Yes, it does.

Yeah. Okay, I'm just going to move on to the next one because there's quite a few questions to deal with.

Sorry, I need to interrupt. So that salary sacrifice, if you're like, in nhs, that sacrifice that extra. Your pain is not private. Pension is. NHS pension is going into.

It's going into NHS pension for full. Okay, thank you.

Thank you, thank you.

Okay.

In the amount that you want to sacrifice, let's say, can I get it on Monday and say, I want you to sacrifice love 2000 from my salary next month or this? Like that?

Yes. You have to ask them, you know, you have to ask them and they can discuss it and there's a maximum. You can also sacrifice. You can't just decide, I want to put 100,000. The salary sacrifice, it's going to be. No, you can't do that. Yeah. So you can. You definitely have to discuss it with your, your, your pension administrator, basically. Okay, right. I'M going to leave the barcode. Basically, if you point your phone at it is the barcode. I've not done it myself, but I'm trusting that my team have got the barcode correctly. It's a barcode. If you point at it, it should take you to the page. For those of you who are interested in sort of like being considered for the master class, if not, don't worry about it. We just continue. Oh yeah, that's the barcode. That's a waiting list to the barcode. Right. So the next question was about. I think someone sent in a question. He asked about stock and shares. Isaac, is stock and shares ISA easily accessible for cash if needed? Absolutely, yes. You can get it anytime you want. Okay. And then someone says, I need to disappear. Great information explanation so far. Yeah, there'll be recordings. Okay. Right. Okay. I'm just going to go back to the parking lot again. Someone said in your master class, you always suggest having three months salary before investing. If you don't have three months arrival, you have. You have this cash, can you not invest that? Okay, this is a very important question. I'm glad someone brought it up. Someone asked if you don't have your emergency fund. So I don't, I don't. I don't say you should have three months salary. No, it's not three months salary. I say you should have three months worth of living expenses. So your salary or your living expenses don't have to be the same. Three months worth of living expenses. That's why you rather suggest that you should have as part of your emergency fund. So I said, before you start investing, one of the seven things is to have your emergency fund. Why? So that if the market goes down, you don't become. You don't start getting jittery because you know you've got some money saved up. So why that is important is also if things like your boiler goes bad or your tire gets busted, you don't become unnecessarily stressed because you have your emergency fund in place. So it's not three months worth of salary, is three months worth of your living expenses. How much you need to live on? You need to save that money. And when you are saving that money, for those of you that have been in the master class or the mastermind, what sort of account should you be saving your emergency fund?

Isa.

Cash isa. That's good. Thank you. So, cash isa, why? So that you don't get taxed on it. Because many of you don't know there's a saving Allowance in this country, if you save your money and you get interest above 500 pounds, especially if a higher tax rate payer, then you have to declare that money and pay tax on it. This is one mistake people are making. You are saving money in your regular savings account, you are incurring some interest which you are, which is taxable and you don't pay the tax. Don't worry, if you ever have any issue with hmrc, they will ask you for all your accounts. I'm not talking from what I've read about instances where HMRC requested all my accounts and I sent it to them. If I just a few months ago I sent over my account and I ended up, I said I thought I was owing 12000 in pounds, we ended up with how much? Zero. That's the amount we ended up because they go through your account. So if you've been saving money, you're getting interest, you're not paying taxes because you're not declaring your self assessment, not because you're hiding it, but you just don't know what happens that if there's any issue, HMS is going to say, oh, you made enough interest on this, you didn't pay any tax, so now you have to pay a fine on that and also have to pay like an interest on the tax you've not paid. So compounding working against you. So if you're going to save your emergency fund, save it in a cash isa. A cash isa. But don't make the other mistake people make. They save all their money in the cash ICE and they don't invest any of it. From my opinion, I feel like a cash is actually just before saving, saving like an emergency funnel for projects or for things that you don't want to take any chance with the money. But if you're just saving money in the cash isa, most people think, oh, this money is being invested or the money is not moving. No, cash ISA is just a savings account where you don't pay tax on the interest. Okay, right, so that's a good question. The other question I've got here, someone says, how do I apply for tax returns for gift allowance of 3,000? That was Steph. Thank you, Steph. Does anyone know the answer to that one? How do you, how do you tell HMRC that you spent money and you want it back? There's one way. I think it's doing a self assessment. Self assessment. Ruben. Thank you. Ruben answered that one for us. Right, Ruben, have you got a question that we've not answered? Yeah, I've got on the parking lot. Is it on the parking lot? Okay. Because you've been here from the beginning and everyone has been here as well, but your camera is on, I'm seeing you. So it was a question. I'm going to go through all the parking lot, don't worry. What's the question? So my question really, number one is maximizing the self assessment. Yeah. All the expenses that, you know, I feel I'm not kind of getting it all. And then also particularly with expenses on travel, what you use to calculate how much to put in there as travel expenses. Excellent. I think I can help you with that. So if you go online, calculate, look for Google AA mileage calculator. AA mileage calculator. It helps you to calculate your mileage. And then HMRC, I think they're paying 40p. Is all in my tax relief guide. You can actually just calculate it. Secondly, you said you're not maximizing your self assessment. I think so. Many doctors are not. What I'll suggest a back a way to get around it. You look for my guide. I think there's a guide on limited company. There are. Limited companies can claim more things anyway. But there are a lot of things that limited companies claim that self assessment can also claim. In fact, in March when we do our tax tax X ray session, we're going to be going into details how that session will be to not just be me handing a list, it's going to be everyone bring your list of what you claim and they will bring an accountant to the session. So that's how this master class thing goes. It's not like you can claim this, can claim that. No, you bring your list of what you claim. I'll tell you what I've been claiming for the last 10 years. No, not 10 years because I didn't start working in the NHS till 2017. But I'll show you what I've been claiming. I you get access to my list, we check out the list. Oh, I've not been claiming this. For instance, most people misclaiming charity. If you're giving money in your church, you're giving money to Salvation army, you're giving money to your mosque. Those are charity, they can be claimed. A lot of people don't claim things. Like if you replace your stethoscope, people don't claim, you know your, if you attend a course, you attend a cpd. A lot of times self assessment is limited. Actually limited company can claim much, but there's a lot of things people don't claim in self Assessment. So part of the tax X ray session is to say look, we don't want to miss a penny, we're going to go through all of this. So these are a few things you can actually claim sometimes as well There are things like in self assessment you can claim charity, someone has mentioned it already. Someone mentioned gift can gift up to 3,000 pounds every year. That can claim your self assessment. If you read my guide how to avoid the 60 tax trap, there's a session that mentioned things that you can claim is a free guide I think and download it for free and just have a rid of it again. It will be shared in the chat box and if you don't get in the chat box it will be part of the email. When I email you the recorded session we should be able to get it. It's not hard to find. Okay, I hope that helps then. Yeah, sorry, sorry. The other one is does NHS pension compound like sip, we have no control. What we just know is that at the end of whenever you get to 68 you want them to give you the money. We don't know what they are doing with it. We want to believe that it's compound. If it's not compounding, whoever is managing it has a lot of questions to ask. Want to hope that. So that's the problem with energy expansion. We don't know. It's a leap in faith. It's just. You just have faith that something is happening there. So the, the question is, are they taking enough risk? Because if they're just buying bonds, bonds just sit down and give you. What's the current bond rate? 4 point something percent. That's not your money growing. Last year the S P 500 did 23%. So whether it's invested or whether it's not invested, the question is, okay, the NHS pension, the contract is at the end of time when you're ready to get your money, they should give it to you. Okay, so we don't know if it's being invested. Well, campaigning to NHS pension then people retiring are getting paid, then more people are getting in. Why if nested of Gen Z doctors decided I want to pay into NHS pension, I think we're going to be screwed. Going to be screwed because they might decide, you know what, let me leave for today, I'm not paying the interest pension. So a lot of people don't ask enough questions about their pension and it's a big chunk of money you're paying in there. In sip you wouldn't dare invest your money without knowing where it's going. Except some sweet, fast talking, smoothly dressed financial advisor. Hopefully one of the ones are being recommended by big medical associations. They'll tell you invest for your future. Like how much of that is your fees, man, you understand? So NHS pension, I don't know if it compounds. I have no idea what they do with it. I just want to believe that at the end of the day, when you're 68, you can get your money. And if you're not sure, you ought to be making a plan B. You ought to have investments. When I see poster shares. Okay, lovely. I'm just going to jump into the next one. I'm sure. I hope that helps do, Ben. Yeah, I know the last one. Some other person has asked it. Okay. It's just about how to know what is left of the 60k to be able to top up. That's the big question, right? It's called your. You have to calculate your allowance. Usually that is quite nuanced. I can't calculate it for each person here. You can use the NHS salary calculator to calculate basically how much you have left. There are some advisors, some NHS pension experts or financial advisors, they can do a one off for you, calculate what is your. What is left for you to pay in. But you can pretty much work it out by getting in touch with your NHS pension administrator or find out how much they've already paid, how much you've paid. The third way is if you are patient, there's an annual total reward statement they send out. Yeah, you can get it yourself. Yeah, the penny dropped. Those things are important. So that can also tell you how much is going into your NHS pension. But the truth is that most people don't, don't even get close to that 60k. I mean, obviously consultants. What do you do, Reuben? I'm a trainee. Yeah, training. Okay. Yeah, your training. So a lot of. Some senior consultants, they find that they're getting closer to that 60%. Sorry, to 60,000. So. But if you're a trainee, you're safe. I think most trainees, I say they're nowhere. They're not. You're not contributing 60,000 into their pension. Most trainees. All right, thank you for that. You're welcome. So when do I need to do self assessment? Yeah, Steph, I've answered your question. What is your advice about using medical accountants if you claim tax relief? Well, I mean to claim tax relief, not self assessment. I'm all for using an accountant for self assessment. I'm all for using an accountant for limited company to File. But why do you need to pay an accountant to claim tax relief? Well, you can just watch my video and do it step by step. It's not even that difficult. So tax relief, you can go to YouTube, watch the video I've made is totally free, or you can download the free guide on tax relief and combine the video and the guide. If you still can't figure out how to claim your tax relief, if you write a comment on the YouTube channel or the blog, we'll answer you in very clear details. You don't need to pay anyone to claim tax relief. However, if you feel you can't be bothered, you can get an accountant. The moneywisedoctor.com will link up with medical accountants that specialize in helping doctors and healthcare professionals. And we like, we like them because we use them. They're good, you know, so that's why we recommend them against other people who are ready to pay. Is that the same thing? If you need a mortgage advisor, if you need them, a life insurance advisor. I can see some of you here have also used some of our advisors. They are recommended because we trust they know what they are doing. Other doctors have used them and given reviews about them. And also they have all the necessary qualifications to be kind of silly for us to put somebody there that is not highly qualified. Some of them are have a lot of experience in dealing with IMG doctors. So that's also a benefit. If you, if you want to get in touch with any of them, you can go to moneywisedoctor.com you see, find an accountant, find any of those ones. All right, I hope that helps. And if you don't know how to find them the tax relief video, you can just comment here. Somebody will share the link for you. Okay, the next question, just because I want us to keep it moving, when do I need to do self assessment? I'm assuming that I did not read my last email. So self assessment and the next email I send an email every Sunday is totally free. I've got a few people who have been reading that email for more than a year now and they always say things like, I remember somebody says him and the wife, they are both doctors, us, they wait for that email every day, every week because they know it will come on Sunday, 6pm Sometimes I'm late and I send it by 7. But part of why I send in that email was self assessment, the deadline. So I'm also going to remind you again this week, the deadline to submit self assessment, I think is January 31st. January 31st thank you. But you can't just wake up and submit self assessment. You must have told HMRC that you plan to do self assessment. So if you've told HMRC that you plan to do self assessment, then you'll be able to do self assessment? Basically, yeah. So have you, have you already registered? Whose question is this? Okay, right, I'll just move on. So the next thing, the next question here will be, please, how do I claim back tax for a part of my overpaid salary that I returned to a trust before I left, before I started training? I assume it must have been over taxed only. Okay. So Olivia. Miss, are you here? Right. Because this is.

Yes, I am.

Right, okay, so you were over taxed. Thank you for that question. So you feel you over taxed?

Yes, I feel so because before I left the trust, that was before I started my training, I'd already like put in my letter of resignation, paid me in full. But later they sent a, a message, did they call me on email or something like that. So that's oh, I've been overpaid or something of that sort. So I worry about it a lot of money back. So I wasn't very sure if there's a way. I just feel I might have been over tax at some point.

My rule is that. Thank you.

I sent it through like a bank transfer. I feel. Yes. I'm thinking if I sent a monetary bank transfer to a trust, how, how does HMRC actually pick that. That was not part of my salary. I feel they would have calculated it. So it's something that's been on my mind for years. I've never claimed any of my taxes that this year I would just sit down one of these days and get it sorted.

Yeah, that sounds a bit odd that asked you to pay back money.

Yeah, because I didn't use spend the full month before I came. So I had maybe like 10 days or something like that left. So they sent me an. Why was contact. I think I received an email later that oh, you know, you left on this day maybe. I think maybe let's say I left like middle of the month or like third week, something like that. So they made one calculation, it was like maybe one. I don't remember the exact amount, but if I go through my account I'll be able to find it. Maybe like one K5 or something like that.

Right. Okay. I think it's possible, it's possible they overpay this salary and part of that salary stocks. Yeah. But if you want to claim any over tax it's going to be true self assessment. The first step in dealing with anything taxes is to open the HMRC account. If you don't know how to open HMRC account, go and download our free tax relief guide. It will show you the link. It's simple. You can even google how to open HMRC account. Open the HMRC account and you'll be able to see how much tax you've paid over the years. Again, this is part of what we'll be dealing with again in the tax drive. The tax X ray session is going to be dealing, hammering in on taxes. It's not going to be about investment. That will be in March because The taxi ends April 5th. Yeah. Anything you miss, you've missed it. If you do not claim tax relief on professional expenses, you can claim you can go back four years. But some people are now in their 50 or 60.

Yeah, that's always looking like. So that's.

Yeah, again for some people who are not in the Mastermind. So we're able to book one on one sessions, but those are getting harder for me to do as well. One on one sessions where you can actually just address your specific issues for one hour and all that. But people in the Mastermind are taking most of my time anyway, which, yeah, I enjoy. I'm not complaining but I love it. I enjoy it. So that, that means I have less time for the one on one sessions. But if you wanted to book your one on one session, get in touch, you can share email or WhatsApp contact. Lovely. So thank you. That was a good question. When do I need to do self assessment? Once at that. How do I maximize my NHS pension? I think we've answered that in this session and also I currently combine a salaried rule, which is pension and a lukewarm role, which is not pension. Thinking of going fully locum in the future. How do I ensure that I still get a good pension port as a document, Doctor. Okay, whose question is that? Okay, I'm going to move on basically because I want to answer the question of those that are around and maybe we'll do a video where we answer the rest of the questions. Is there anyone else who is interested in this and wants an answer to that? Are you still here?

I think the answer to that question is private pension, isn't it? I think.

Yeah, exactly. So if you, if you've left, you're no longer able to contribute to NHS pension, especially if you become a limited liability. Look doctor, you're working through a limited liability company, so you're no longer an NHS staff, you can open a private pension which like she said one option could be an SIPP SIP or a SARS if you have what it takes to manage the sars. The SARS is complex. I never recommend it for someone who's just starting out. It's a complex, it's good for maybe a business. They use it to manage their pension. So yeah, you probably need a private pension of your own. Right. Okay and then the next question is please kindly share the links that talk about the NHS pension. I think UD has shared it already. UD if you don't mind sharing it again. That's the NHS pension. I think I did a blog actually. The blog is quite, quite detailed LHS pension and use the video. Yeah video blog anyone is fine. Then the next question is how do I maximize my self assessment return? I think that was Ruben question how do I maximize my self assessment tax return? What are all the allowable expenses that can be claimed? How do you calculate travel expense? Reuben, is it fair to say that was your question? Yeah, yeah, yeah I think, I think we've addressed that. Okay, that's fine. The next question is please do give step by step guide idiots guide. I like an idiot's guide as well on how to contribute to our pension to escape the 60 tax trap. If you're a salary doctor because your money has been taxed before you receive it, I think this is a very important question. Does anyone else have that question?

That's my question actually. But I think in the process of speaking with Maliga Magliada we sort of answered it. So if I can recap because it's been taxed already, once you get your money, your wage, you can take the amount you want to put in your pension and then do a self assessment and claim it back.

That is beautiful. That's just what it is. Okay. Easier for me it is there. If you've got a limited company then the money doesn't even go to HMS in the first place just goes to your pension and they tell them I've spent the money on my pension. But if a salary doctor like some of our hard working consultants say you don't have the option so you can just claim it through self assessment. That's actually a brilliant question. Right.

Can I ask a question quickly is based on Ruben's question when he asked on things of what can you claim? So as a salaried doctor can I claim for my. Because he mentioned travel. Can I claim for my travel to and for for work. But I'm Salaried as a salary doctor. Can you claim that in self assessment?

I wish we could claim that. That would be amazing. So you can claim if you're going somewhere outside your work, please and claim. Yeah. If you're working at two sites then you can claim the second side. If you're going there but your regular travel, you might not be able to claim it. Okay, important question. I've asked that question myself and I tend to go directly to HMRC to find out someone has asked them a question. But before I delve into the next question, I just want a little favor from you. Your feedback really matters to us, whether it's good or bad. If you think, well, this guy is talking complete shy, he doesn't know what he's talking about or it left me more confused. But I would like to get reviews. So if everyone could get out your phone, you can do it quite quickly and just point it to the screen. I'm going to do the same as well. Make sure I'm getting the right QR code. Or you can use the link, you can share the senior link as well for some people who are using the laptop, see what the link gives us. Okay, so basically if he would, if you wouldn't mind giving us a review, a feedback, it's really quite helpful basically because then when I'm asked why didn't you finish by, why did you finish your session by ten? Because I've got some bosses, I've got a four year old boss and a seven month old boss. I say, oh, look at all these reviews. These people, they find it useful, they found the session useful. So again, pass. I like videos as well. If you want to do a video review, that's brilliant. These are some of the reviews we've gotten. Okay. All right, so if everyone has done that now I'm just going to move on to the next stuff. How financially healthy are you? What is your financial Early Warning score? You can call it Fuse Core. Just like News Core, it can help tell whether you're at risk of financial sepsis or being acutely unwell financially. Now take our Financial Health Check quiz to find out. In just under three minutes, less than three minutes, you'll get a personalized Financial health score. An action plan to improve in key areas like your earnings, your savings, investing and obviously financial security. It's fast, simple and completely free. Discover where you stand and take control of your financial future today. Take the quiz now, using the link in the description. And now let's jump right back to the episode. Okay, the next Question. Thank you so much for your reviews. I appreciate that. It also helps more doctors actually find what we're doing and, you know, help them, help them make smarter financial decisions and take charge of their money. Because at the end of the day, 2025, I believe that someone can step into the beginning of the year knowing nothing about taxes and investment and all that. And if they know what they're doing between January, February, March, once they're able to beat that tax deadline, they can still make up for any mistakes they've done, basically because now they can, for instance, not use their isa. If you can know how to use it before the taxi ends. If you've not used your lifetime, Isaac, you'll be able to get that £1,000 before the taxi ends. But once the taxi ends. Okay. Sometimes you cannot correct those mistakes again. Right, next question. We've got like. Sorry, Doc. Yeah, sorry, interrupting. Just a quick question. So with the, particularly with the lifetime isa. So I actually set it up not so long after our one on one session and I realized that I think somewhere in the app I'm using, they told me that there's a certain amount of pounds, amount of money that I can reclaim within the tax year. And they told me a timeline when it's going to expire, which is the end of the tax year in April. How do I go about that? Is it still part of the NHS tax or do I need to do something separate for lifetime? Is that like a promo the app is using? Sometimes Some apps try to offer you some money so that you can open the lifetime isa. No, but this one I have. The lifetime is already with them. Okay, so. So it's just more or less. As I speak with you now, I just opened the app again. And what is with when you go and see your balance? It just tells me how much I've put in and tells me that I have in my tax year. 2024, 2025. I have social amount of pounds still to claim. Tell us the amount so that we know what, £810. So basically, have you put up to 4K already? Not yet. Yeah. So maybe they're telling they can still put an extra. Well, if you feel comfortable sharing. How much did you already put inside? About a thousand five. Right. Okay. So I think I know where the mass is coming from now. So you put in a thousand five and the allowance. So I'm just going to work out the bus. The allowance in the tax is 4,000 for the lifetime. I say, isn't it? Yeah, the 4,000 minus a thousand five will give you 2, 500. Yeah. So 2500 multiplied by 0.25, that's 0.25 is the government bonus. Yeah. Six hundred and twenty five. Yes. So they are trying to get you to get the rest of the money, but you don't have to because that, to answer someone else's question, there's no minimum. You can put 1 pound, that's the minimum. So if you don't have 4k to put in. Yeah, 1, 5 and get, get that bonus. But if you have 4, 000.

Yes.

Within the regular savings account, put in your. Yes, yes, I'll do that. Thank you for clarity. Thank you. Lovely. I will chat again in your next one on one. Very enjoyable. All right.

Okay.

Right. Okay, that's Anthony. Anthony, mastermind this year. All right, so I'm going to jump into the next question. The next question is Adana. He said Adana, are you still here? My neighbor. Yeah, I think she's gone now. Yes, yes, yes, right, sorry. Okay, so you said, you mentioned director's passion. Can you especially turn it. Is there a maximum percentage of the whole company income that one is allowed to put in? So director's pension is again, you use a limited company, like some of our GPs here or psych doctors, you do Section 12 and all that. You want to put in money into your pension. You are entitled to have a pension as a director of a company and that could be a SIP or a SARS or any type of private pension you want. So director's pension is basically opening a pension in your name for the. Through the company. So director's pension could also equally be. You open a sip. Opening a SIP and then paying into the SIP from your limited company. Does that make sense? So that the director's pension is your pension, but when we go to HMRC's, director's pension is your pension is Adana's pension. But you're able to claim that money because you are the director of a company. Unlike, unlike Chi, who is a consultant in the NHS that needs to go and get the money back from the hmrc. You don't need to get the money back, you pay it as an expense. Right. And you asked me what's the maximum you can put in is? 60,000 a year.

You ask me what even for limited, even for a limited company, for everybody.

Like any individual, the maximum you can put in your 60K. So for you, Chi, that 60K could be made up of your contribution to the NHS pension, your employer's contribution to the NHS pension and maybe any extra money you put in a SIP for someone else, I think was that all loose Femi or I didn't get the person who was doing salary sacrifice could be your NHS pension, which would include your salary sacrifice, your employer's contribution and then if you have a SIP as well, it all goes into that 60k. Meanwhile, for someone like, I don't know, it might be like, oh Yeah, I made 80k profits. I don't want to pay all of that profit. So it's not yet profit because I've decided to put 60k into my sip. So your profit becomes 20, 000. So that's what you're going to pay out dividend to yourself and other shareholders in your companies, which I hope you have, because I do so that shareholders in your company get these dividends. That means that your taxable income just dropped from 80,000 to 20,000. I'm going into the area that I bit hot, that thing that we share in the Pax X ray session. But basically we didn't make the rooms. Right. We didn't set up the system. Yeah, it's not. Some people set it up to favor their friends or whatever. We just learned about the making is a fit because at the end of the day, you want, if you make one pound, you want that one pound to work harder than you did to make it. You want that one pound, get all the tax relief you can get on it and then invest it, don't invest it and then overpay tax on it. That's a loser's game. You want to get all the tax relief on it and then invest it and still be getting relief on that investment. That's the game. Some of you asked me how come you don't have a regular job. That was the game. Like you get, you get an income if you, if you make it work for you. 20 years over 20 years of time investing, oh, that's my love gone. Now, if you got 20 years of doing this thing, you cannot be on the same level with someone who's just like, all right, just taking the needle and take all the blood you want. It's not possible because you're playing in a different game, okay? And it's all legal, it's all written down. We don't do anything that is not legal here. We don't discuss any offshore accounts. No, we don't do that. You also said, I know that when one is ready to withdraw from sip, one needs to pay tax. I've answered this question. So this is question I've already answered it. You're asking about whether you need to pay tax. Can we use invest engineer trading212 to open a stock ISA for my kids? I don't think Invest engine offers a Junior ISA. I'm not sure about trading 212 too. I think you should go watch my video on YouTube about can you make your child a millionaire? Yeah, I remember the day I released that video. I also shared it in the money wise doctor community. I think you were there that day. I don't know if you watched it. Yeah. So maybe you should watch that video. And if you're not sure if you've got any questions, feel free to ask me on the YouTube channel. I'll answer it. I'm very detailed when I reply to questions on the YouTube channel because I feel like several other people may have the same question. That way it gets answered. Rashida asked, is SIP accessible before retirement age? The question is what is retirement age? So Rashida, towards retirement age. What do you mean retirement age? Right. I don't think she's here.

Yeah, but we also addressed this earlier on. Like we said, currently the age is 55, isn't it? And from 2028 if you want to access it early, you'll be 57 years old. I think we kind of.

Would you like to be a co facilitator in the next session?

I'm still here.

I really joined very late because I'm three hours ahead of you guys where I am.

So. I'm on a very short vacation. So yes, I, I, I'm just even.

Realizing that retirement age has been reduced because somebody just mentioned 55.

It's not retirement age. So if you have SIP, the question we asked earlier was can you access it before retirement age? And the answer was yes. So the next question became at what age then? Oh, can you access it if you want to access it early. So currently is the age of 55. Okay. Because it's for your pension, isn't it? It's the age of 55.

Right? Yes.

Okay.

Okay. Now the next question regarding that, I'm sorry, if you've answered this before is would you now be taxed if you assert it earlier? You, you mean your NHS pension? You will, yeah, you can assess it earlier than 55. If you assess it before then.

No, no, at the right time.

So you'll be taxed. So that's part of what you access it. You'll be taxed anytime you assess any of your pension. But I think I explained it earlier on 25, you can withdraw as a lump sum without tax. So most people just take that 25 and then withdraw the rest in bits that are not that much taxable because then your pension income is regarded as income and you are taxed at the, at the current tax income tax rate. So let's say Rashida, for those of you don't know, Rashida is a consultant radiologist and we had a one on one session as well. She's somewhere on the nice holiday. But Rashida, if you for instance, retire, you take 25 of your bulk payment is tax free. Now let's say the next day decide to take like 50k, they will tax you the same way they tax somebody that is 50k. Okay? So if you are fortunate, like I know many radiologists, probably at 70, they will still be able to just sit down in their house and do some work. You might think, well, I'm not, I'm not going to withdraw 50k, I'm just going to withdraw 12, 570 this year and then I'm going to gift, I'm going to gift my grandson or my son son this amount. I'm going to do this and all that. At the end of the day I might still end up not paying any tax on it. And if you decided you wanted much more, you can withdraw 50k, then you pay the tax at 20% of what regular people think, which would have been much more than what you'd have been paid. You would have been paid as a consultant radiologist where you'd be paying 60 basically if you've crossed that tax threshold. Does that make sense?

Yes, it does.

I have a lot more questions on sip, but I will just go read more about it and be more detailed in my question. Have a read, sell us a question is recorded. Yeah, the session is recorded. Also you're in, you're in the premium community, in the private community can always ask a question if you've got a question or ask on the video or email me. There are so many ways. The worst way that I struggle to respond is DMs. I mean if you want, you can DM me and I'm going to respond, but I may not respond immediately. I'm not referring to you in particular, Rashidat, I'm just talking to anyone else who's got questions. Okay, all right, I hope that's sorted. And then the next question came from, would you advise someone with pension, they advise someone to continue with NHS pension if living the UK in two years for Canada? We've answered this question well, yeah, she Helped me on site while still on sip. How can I know what amount is left to be put into a sip? If NHS staff with 10.7% cancel it. I think we also answer this one, sort of like a calculation to work out your statement and that should help then the next. I think we might have answered a lot of the questions during the process. Someone says, can I get my NHS pension as a lump sum before pension age blessing? If so, how much would you pay? I think it's possible, but you're going to pay a lot. I think they charge. Was it. I don't know the exact amount. 5. 5%. 5% per age, one year before retirement. So you're going to lose a lot of money. So I wouldn't want to withdraw my NHS pension before the retirement age. But if you must withdraw it, then you need to take specialized advice from a specialist medical accountant. I recommend to actually calculate what you're going to gain or lose before you make that decision. At the minimum, you need a financial advisor, an independent specialist financial advisor that is vetted. Not random person calling themselves financial advisor, just someone as a specialist and they're independent and they know what they're doing. Right. Someone says, do you open a new SIP every year? I think that's you. I don't know. So do you open a new SIP every year or do you just open one sip and then pay into it the max per year? No, you don't need to open a new ship every year because your pension, but isa, you are free to open a new one every year if you want. You can continue using the same provider, but you're entitled to a new ISA account every year. Entitled to 20,000 pounds every year. One thing to note about ISA, nowadays you can open more than one ISA if you want, but you must not exceed 20,000 pounds. Now, for those of you that are still hanging around, I got a special hack. If you lean forward, I'm going to tell you a trick about ISA that most people don't use. Okay? Are you ready for it? This could save you several thousands of pounds, not just in your taxes and pensions. Have you fallen into the 60% tax trap as a doctor, healthcare professional, without even knowing? It's crazy. I know you think the highest tax you can pay is 45%, but here how it works. If your income exceeds 100,000, you start to lose your personal national tax allowance. And by the time you hit about 125 000, you've lost your entire tax allowance. This means you're paying an effective tax rate of 60. That's not good. You lose a lot of other benefits with it. Now, if you. If it's something you've never thought about or you're worried, you're not sure how to navigate it, you're in love. Because I've written a very clear guide with a 10 point checklist that you can use to avoid the 60% tax drop. One of the. The biggest one is obviously paying more into your pension. But there are nine other steps you can take. Check the link in the description and download it for free. Let me know if it helps. Let's jump right back into the episode.

Sorry, I want to. Sorry. Can you hear me?

I can hear you. Yes. Go for it.

I just need a clarification, please. You said for the ISA you can open a new ISA every year. So what about if you already have ISA with different providers? Do you have to open a new one or can you just. I mean, what. What exactly do you mean by a new one? Is it that you put in some more money into that one you already put once next year riches or you have to open a new account with them again? What do you mean?

You seem offended at the thought of opening your account. I promise you you don't have to go and start the whole process again. Sometimes it's just account is plenty all.

Over the place up the money that one has.

That means you're going to love my video coming out on Sunday. It's called the seven accounts you must have on your journey to financial freedom. The seven accounts. But what I mean is that you can open a new ISA account if you're already using. Let's say you're using Invest Engine for your isa. The next day you need to sign an agreement like just click a button to agree to open to reopen the ISA with them. So it doesn't mean filling a new form. It just means you need to authorize them again.

Okay. And then when you contribute to the. To that isa, it will still reflect into the whole money together, isn't it?

That you have become it? Yeah. But you now have a brand new £20,000 allowance. Yes.

Investment. And everything is still going to add up to the total sum.

Absolutely. Absolutely. So remember, ISA is not your investment. ISA is the account you still need to then invest the money. So you can then still put in like I know many people, beginning of the taxi April 6th, they put in 20k. They just don't want to miss it. Okay. But of course, if you've got a lifetime ISA, you can't put in 20k. If you put 4000 in your lifetime ISA, you only have 60, 16,000 to put in your stock and shares. ISA. And if you put an emergency fund 10,000 then you only have 10,000 for the rest of your ISOs. That's what doubt.

Yeah, yeah. Okay, okay.

The ISA hack I was going to share Chair Karate. The ISA hack I was going to share is a lot of people approach ISA and tax as individuals, approach it as a family. If you are in a family where there are two adults, then you've got 20k, you've got 20k, make sure you're claiming for both of you if you can. Even family where there are children, they are less than 18 years. Remember there is Junior Isa. So you can also claim £9,000 Isa allowance. If you've got like a family of two adults, that's 40k. If you've got two children, that's 18k, that's 58k already. Isa allowance that you can invest tax free. Okay, another thing I want to explain. If you've got a limited company, are you able to claim for instance, I think one of our, one, one of our private community members here, she asked a question earlier on. She has a staff that has maybe 15 or 16, I don't know what age, but 16 years teenager, very sharp, doing some work for her and then she can pay him or her as an admin assistant out of the limited company. That's before tax. So this is approaching tax from a family oriented aspect, you understand? So how can someone here, I'll give you an example like that you're a limited company director but you're also a shareholder. So if you take all the dividends, you might end up with a, a large dividend and then you suddenly have a large taxable income. How about you've got other people who are also shareholders? Don't know, maybe people who are working in your company, whether they are, maybe they're not, they don't need to be working in your company. I've got like some, like if you have a partner, if you have a family member, they could be shareholders in your companies. And again there's no rule that they should be in uk. They can be anywhere. Then they settle their tax wherever they are. Okay. So that means that you can actually end up with you personally paying less tax. Again, this is a bit more in depth. Some of it is hard to explain. Not everyone here has a limited company, so not very useful thing to share if you don't have a limited company. But it's worth knowing that there are many ways.

You know, I think, I think another way that I was thinking about recently was that dividend, you know, you don't have to necessarily use everything. You may put some of it into the SIP as well.

We've been talking about all along.

You can put some in the SIP and that would not be taxed just yet. And then whatever is left of it will, would then be.

No, no. If you put dividend your c, we then have to claim it through self assessment.

Yes.

Before we can get to dividend, you have to have declared a profit. Once you declare profit, you have to pay tax on that profit. Yeah. Whatever else you're putting in after the profits basically has been taxed.

Yeah, true.

If you've not paid the tax. HMRC is expecting the money. They do like to get their money. They are hiring 5000 new workers. So they like to get that money. Right. Okay, I think we're almost at the last question now. Someone says can one put gift into SIP contributions? It seems like it's all your questions towards the end. So that's good. We just finish it up. Do you open a new ship every year? No, we've answered that. The. Hello, please. I come up somewhere. I came across a shift kind of contribution where I can get about £5,000 at a time once a year. What do you think about this? Are there better ways of raising or keeping funds somewhere? Are you here? Do you. Are you still here? I wanted to understand your question better. Okay, I'll just summer you're here. Oh, good. Yeah. Do you want to clarify? Is it like sort of people contributing money and then maybe you get some at the end, So to speak, and then somebody packs the money. Now I understand clearly what you're saying. I have nothing against that. I have nothing against that. I'm not a big fan. I'll tell you why. It introduces risk. And anytime there is risk, I want a reward. This is what we're teaching an investment master class. If there's a risk, you want a reward. If there is no reward in it, then I don't want to take the risk. Okay? Now here is the thing. If I give somebody my money to hold, it introduces a level of risk, right? Because the person might be honorable and everything, but maybe they might forget to pay me or there might be an issue or there might be stories. Do you understand? So I rather have the money in the bank. I'll give you an example. For instance, if you are currently putting a thousand pounds every month, giving it to somebody at the end of this, at the end of the five months period, what are they going to give you? Let's say there are five of you and each of them you give 1000, one person takes 5000, one person takes 5000 till they get to your ton. How much would you collect from that. Five thousand? Okay, let's check the other scenario. Let's say I'm putting 1000 into my. Sorry. Okay, so 5000. On the other hand, let's just say I'm putting 1000 into my account. In my, my Lisa account I put 1000, I put 1000, I put 1000. And by fourth month I already have a free £1000 from the government. And I'm taking less risk because I'm putting my money into an institution that I think has a high chance of paying me. And they've also got something called FS. Is that FSCS where if your money is less than 85000 and the bank goes broke, then they are covered by insurance. Agile is great and it's lovely for making friends. But if your main focus is actually maximizing optimizing your finances, maybe that might not be the first place to start to save money. I want to start with things like putting a proper account that's actually going to pay you interest or if you're just trying to do it in a way that you don't want to make mistake and not save money, then you want to learn about amass. My system I call Amass is automated monthly activated savings system is simply set up a direct debit to your current account. Take that same amount that you have put in or sent to whoever you're doing the contributions with that can automatically go into the account. Just assume that you're contributing to the account. That way the money is still safer, there's less stories. And I know you have the most trustworthy friends in the world or you have the most trustworthy group. But again, when it comes to money, strange things can happen. So that's why I'm not against. I just don't do it personally. I've never done it. I like to take a risk when I can see a reward. If there's no reward, there's no need to take a risk. If I'm doing charity, I know it's charity. My friends need money, I give them money. If they want to borrow money, I borrow the money. But when it comes to that sort of contribution, again is they're taking a risk but they're not reward. Did that help? I don't know for some of us that are not from the same culture, I know many cultures also do this. It has different names. I've heard somebody from Philippines say they do a similar thing. I've had somebody from different countries where you contribute money. Maybe this person brings a certain amount and every month you contribute, let's say £1,000 is given to one person. Let's say there are five of you and they all pay your 1,000 to the same person the next month to be somebody else's thumb. Yeah. So some of. Does that help? Yes, yes, thank you. Lovely. Okay, we're almost at the end now. I think I'm. I owe it to you since you put down the questions to answer the questions and I also probably make a video on the wall that weren't so covered in details. Someone said can, is it possible to have a SIP and ISA account and invest through them separately in the same taxi? This Alaba. This is a very important question. We could have addressed it early but obviously limited time. Is Alaba still here? Okay, yes. Okay, lovely. So the answer is yes and that's what I'll do. That's what I do. You can have a SIP account. You can have an ISA account. Your SIP will give you the ability to maximize your tax allowance of 60k and your SR will give you allowance of 20k to invest your after tax money. Yes. And I think part of what we do in, in our sort of my one on one sessions, we usually check if you have a sip, you have an isoi, you know, using both of them. Okay. If you don't have spare money to put in your sip, of course, but anytime you ask for money to invest, don't, don't go through a regular investment account. Make sure you are using the tax so that government is helping you to invest. Basically they are contributing to your investment fund by giving you that relief. Okay, lovely. Can I claim tights paid to church and tax relief? Yes. Samuel, can I ask a follow up question on the SIPP that. Mine is also linked to What a couple of questions we've asked. So essentially with the sipp, for someone who has left a salary GP role and is looking to work full time, local via a limited company, obviously no more access to NHS pension and looking at sip. Now, if one was to, you know, relocate, what happens to the forms in that sipp? Are they accessible from anywhere in the world or what happen should be. Yes, that's the answer. So you can assess your SIPP from anywhere. In fact there are some countries that have Agreements, places like Canada, Australia, New Zealand, and lots of people assess their pension from Nigeria, Pakistan, different countries. So your pension won't just disappear. That's also why it's important which country your pension is. Because of course, both of you originally Nigeria. And when I left for the uk, at some point as a student, I needed my money really badly. I was able to go to my pension fund that I had when I was working in NGO. I said, I want 25 of my pension. They said, I have you retired? I say, yes, I've not been working for one year since retired. Then I was 29 or 30 or whatever and I was able to get 25 of the money because they said you can't get the full money because they are less than 50. But again, I was able to get that 25 bulk, which I did at that point. At that point. So if I could get it from Nigeria, I think I'd probably be able to get 25 of my pension or IL or ISA or SIP, even if I'm in a different country. However, if you move to a different country, you can't contribute to ISAs anymore. I've got some of our GP colleagues who've moved to Canada. That's why I do some sessions overnight, because it's daytime for them and they want to do one on ones with me. They go there, they find out they need to invest. They've never really done any investment in their life. There's no NHS pension there, there's no isa. So they really need to feel their way around investing. So basically, if you leave the uk, you can put more money, your isa, but your eyes are still yours and you can get it whenever it's due. It's a stock and shares isa. You can still use it, but you can't put money, your lifetime isa. Lovely. Would you still be able to invest in the SIPP from say, Canada or Australia, for instance? Yes, because that is a pension. But most people would actually sort of like relocate their pension to the country where they are. But a pension is different, the patient is not an isa, so you should still be able to. As long as they are tax resident in the uk. You change your tax residence to Canada, then you now need to deal with whatever is the allowance in Canada. And Canada has got a bit of a different system. You can use a limited company as a doctor, so if you're, if you're a family physician, you can take the money in your limited company and just invest it without paying tax and then you pay tax in the future. So but that's a very nuanced, A little bit different. Yeah. If you move to a different country, still have access to your pension, but you need to figure out, are you going to be tax resident in uk? Are you going to be tax resident in that country? Okay.

Sorry, did you answer my question about whether or not you can put gifts in a sip?

How do you put your gifts and see if. You mean if somebody gives you a gift?

Yeah, if, if someone gets a gift. Because I know you, you're supposed to tax, tax, gift, isn't it? If you get gift, it's taxed, isn't it? Oh, it's not.

It's not the receiver that is taxed, it's the giver that is taxed.

Really?

Yes.

If somebody gives me something now, I'm not taxed on it?

No, you're taxed if you are the giver. You allowed up £3,000. Why did they do that? Some people decide to give out their funds so that they don't pay pension on them. I'm sorry, don't pay tax on them. I'll give you an example. Inheritance tax. If you're a wealthy person, let's say you've got a bit of money and you're approaching, you know, let's say you think you might die in the next five years, some people start giving out money, they sell their house, they give money to their child, they give money to their grandson, they give money at the end of, let's say when they die, then there's no money left to be taxed for inheritance tax. So that's a strategy. But the government now put a restriction that the maximum you can gift is 3K, basically in a taxi. Again, I don't think you need to worry about that yet. But you being the recipient of the gift, you're not supposed to be taxed on it.

So you're saying that somebody can receive tax maybe 10 grand. 10, 10k pounds. And there's no tax on it?

There's no tax on gift.

Wow, that's cool. Okay, thanks for that information. I did not know that. I'm just wondering where people, where people are seeing people that are gifting £10,000 so that we can also. Please, I'm praying that Adana shares that link later so that we can get there. You share that link. Oh, I beg you, share that link later. So are we too?

Well, this is a different discussion. Probably another master class. Not me, But I think the road.

To that is, you know, getting all.

This information about financial management and they.

Get to the point where you're wealthy.

Enough, you built your wealth, you've invested.

Over time and I have that much to gift.

So I think there's a right step. I love it. I love it, I love it. All right, so I have a question.

Sorry, Andy, you said you come back to me earlier. It's about cash.

Isa, don't worry, I'll get in a second. Let me just finish the parking lot so that we know that it's all done. Can I claim ties paid to church in tax relief? If you put tight to your church, you can claim it in tax relief. As long as the charge is in the uk. It's easier if you paid it through your account or if you pay through a card. That way is documented. And that was somewhere then what is seis? I don't think I'll be able to go into that. I've used SEIs myself to invest in a startup company, a software company. I'm an angel investor in that company. I think it's a little bit outside the scope here, but basically is if you invest in a company, a company that is newish, especially their capitalization is less than 250, 000 the UK government will underwrite, meaning that they will write off any losses. You have up to 50 of your investment. You see why I didn't bother bringing it here. But that could be like something that we look at in the mastermind. So the UK government will underwrite basically, let's say invested in this company, software company. You know, it's a risky investment. If they turn out not to become anything useful, then the UK government will say okay, the 50 of that money invested, you can now claim it as tax relief. So that's why we rushed when we wanted to for the investors that wanted that, we really, really wanted the SCIs, those that were from America, New Zealand, I wanted to invest in that company. They were just looking at giving us the bombastic side eyes. They don't have that thing there country. They have their own tax types actually. In fact the company used that as a. As a means to, you know, promote the fund they were raising. They had scis. And of course they did allow us to just buy up all the SEIs. They even had to allocate it. You're buying 12 shares, you can get two SEIs. So SEI is a very interesting topic. We've not begun to scratch the surface. I'm just sort of like sharing basically what people want to know about immediate issues. But there's another level when it comes to this whole tax and investment thing. But thank you for, for bringing up that question. Ali, the last two questions before we get to his question that can I claim actually from professional fees if I already claim the fees as expense on a limited company? No, you can't, you can't do that. If you've claimed it, you can't claim it. You can only claim it once. Okay. Also can I pay my nanny via my medical limited company and claim it as expense as our service helps me do my job? I think a lot of this would depend if you do it to a limited company, you employ the nanny through your company, give them a letter of employment through your company and give them. Because basically HMRC has three tests. Maybe you've never heard about it. If you want to claim anything as expensive, it has to be reasonable. Who determines what is reasonable? But they say it has to be reasonable, it has to be exclusive. So that expense is for your work exclusively. It has to be wholly for your work. So if you buy a guitar and let's say you buy a car, more practical and use it for your work, but you also use it to drive around, HMS is saying no, that's not it. You have to then pay us some money back. Okay, but who is tracking what is holy? How much of it is used? So again this is a very nuanced question. This is the kind of thing that you want maybe address with an accountant or if you wanted a one to one session, you can book a session. We can look at it actually because this is a bit nuanced. You want to be careful around it because if you make that expense and then HMRC says no later, then you have to pay them back and you have to pay an interest on it. I have to even, you know, pay a penalty. HMRC penalties are annoying. Which Invest Engine. Can I determine the type of stocks and shares companies are investing? Yes, but Invest Engine has one limitation which is actually a good thing for most people. Invest Engine has only index funds and ETFs. So that's the link to investing in. Again I think they still give like 50 pounds welcome fees, a welcome bonus for doctors who go through our link. But Invest Engine doesn't have individual stocks, it just has like basket of stocks. So if you wanted to buy ETF's index fund, investing in is the right place to go and there's zero fees on it. But if not you can try other platforms trading 212 where you can buy individual stocks just from really need to know what you're doing so that you don't make mistakes because some of those softwares or apps will be pushing you to say, oh, this one is going up, that one is going down, this one is going up. It's gamified, which is not something you see in investing in Vanguard. And so you want to be really careful. Right. We've been waiting for that question. We want to get it now.

Okay, so it's not actually a big question and maybe I already know the answer. It's about cash ISAs. I was just all this while we've been talking ISA, ISA, ISA. And I just realized that for the stocks and shares isa, I use platforms, but for my cash isa, I use one of my banks, I use my bank. And I realized that's because I've been using a cash ISA for a very long time before I became aware of these other platforms. Slash Isaac became confident in them. I only started using them when I joined Money Wise, to be, to be honest. So just wondering, and maybe I know the answer. The cash ISAs with banks and cash ISAs using the platforms. Yeah, I mean, which is better? Do they have different, I suspect they have different interest rates. So what, which one's better? What's better to use? Is it judge them on their interest rates? Is that the thing?

I judge, I judge first on the fees. If there's a fee, then that's the first night check. Then if there's no fee, the next thing is interest rate. For some people it's also convenience because if another platform gives 1, let's say give 4.1% interest and your bank gives 4.09, you might think 0.01 is not enough reason for me to, to go and go through all that stress. Because at the end of the day, being your financial wellness is not just about the amount in the bank. Yeah, mental. Not being mentally stressed about money as well. I always say this in the investment master class, if you remember, you either eat well or you sleep well. So you can take more risk. Buy the crypto, you think it's going to become 100x. And also I have like a small percentage of my investment that goes into high risk investments like startups. But you want to be able to sleep well. So if you take safer investments, you get less return. You sleep well, but you don't eat well. But if you also want to eat well, I take higher risk investment. You eat well but you don't sleep well. So the thing is finding a balance. And that's where asset allocation comes in, which is also day two, two of the investment master class, knowing how to allocate your assets properly so that you are taking the right amount of risk and not end up, you know, over allocating assets to one that is too risky or missing out on returns because you're not taking enough risk. Someone said can I recommend platform for isas? There are so many platforms as you can tell. I like Investing gym because it's 0% fee and it's very easy to use and there's less chance of you taking silly or making unnecessary mistakes with investing individual stocks. So I've posted a link to Invest Engine, you can check it out. But it's not the only one. There's Vanguard. Vanguard is very good. They've got answers as well. Recently they annoyed a lot of their subscribers by introducing fees. They've introduced them four pound fees per month. That means that if you are putting 100 pounds per month into Vanguard, they're already charging you 4% of the hundred pounds. So while they did it, people like investing in. They've actually got. They're getting a lot of people moving from Vanguard to Invest Engine. But there are many other platforms. There's trading 212, there's free trade, there's Moneybox, it doesn't matter. What you always want to check out is is it easy to use? Can I use it easily? Who else is using this and what are their fees? Very important. Okay. The platform for the protected startup investment, there's no platform, it's seis. The startup themselves have to get the shares and come to you. Okay, all right. Okay. Just before we round up, someone said to me that yesterday that the best investment she's ever made in her whole life was joining the money wise Dr. Mastermind basically. And why she said that is that what she got from the first one to one session was enough for her to recover the fees for joining. Basically. Because basically if you understand how to maximize it, just one information you get can actually be thousands of pounds. What like you've been through this, it's almost three hour session and this is just like you're scratching the surface. I think some of you here who are already in the mastermind or who have been in our master class, you understand that we're scratching this of it basically because there's a lot sometimes information I think is free. Information should be free. There's implementation, content is free, it's context. There's a little bit nuanced way I dealing with someone. Okay. If I've been investing for 20 years, there's some things that you don't just read on a blog, even if I try to convey it on a blog. The same thing with taxes and all that kind of stuff. So I'll say for those of you who are really, if you're not sure, I think you should just get on the waiting list. If you're one of the three people, it's really quite simple. If you join the Mastermind which is a 12 month program, if after the first couple of class sessions, if you this is not for me or if you feel this is not going to be 10 times what the money I paid to join, you can just send us a message, we'll give you a full refund and you also get a free book from us for wasting your time. I can also keep up all the resources which includes videos and some other sort of like recorded materials are not public because like I said to you, they're a little bit hot. They are quite, quite legal. But it's easy to be misunderstood. Okay, yeah, so I, I'll say you, if you share the link to the waiting list on the Mastermind, you can point your phone to the barcode to join the waiting list. They first session starts tomorrow by 8:30pm so if you want to join this batch, because I think this is the last batch where we're going to have like four one on one and it's 12 months and all that stuff, there might be future batches but this particular cohort is also good to join this cohort if you've got like the right set of people in there, you've got like consultants, you've got like resident doctors, junior doctors, SHS GP is a wide range. I've got people like, basically like, like I mentioned the investment bank. I've got people who are like super organized, they're sharing their spreadsheet. So I think it's a no brainer. Basically the sessions are quarterly. There will be a quarterly exclusive sessions but the one on one, you're totally in control of it. You book the one on one whenever you want. There's going to be one every quarter. So if you do what you need to do for that one on one the next quarter I'll be checking what was the plan. But what's most crucial is that the Investment Master class which is a four weeks program, if you're in the Mastermind as well, you should be able to get into the Investment Master class. Now there's something I did for everyone who is currently in the Mastermind. I sent them a book out of my own library. So I've got like 12 books. Out of the 256 personal finance books I read, I've got like 12 books I think everyone should read. And you don't have to read all of them in one day, but if you read one per year, which is what we are going to do in the Mastermind, there's a book club as well, so I'll send you a book as well. For those who join this current Mastermind, I'll send a book for free. It's just my welcome one of those 12 books. But that will be for those who join within the Next. Is it 24 hours? I don't know, before the next session. All right, but that's. I think I'm going to draw the curtains here, except you have any more questions so that we can say we'll finish by 11:30. If anyone has any final questions or anything, I'd like to address that. Right, okay. So, lovely. Thank you so much, Casey, and I'll see you in the Master Mind session tomorrow. Right, lovely.

Could I ask one quick last question, please?

Of course.

So I wanted to ask about the NHS pension.

If you increase your contribution, does the government match, you know, that increment or.

There'S a cap on, you know, what they pay?

There's a cap on the match. The government doesn't actually match anything. In the NHS benefit, is your employer, which is the NHS that matches it? Yeah.

Okay.

So does the employer, is the employer obliged to match it when you voluntarily increase, raise how much you contribute? Now, I think it depends on how much you contribute. That's why they control it, you understand? They control how much you can contribute. So for most workplace, workplace pensions, if you contribute more, the employer can match it up to a certain amount. But in the NHS pension, they probably allow you to contribute, I think the maximum. Last time I got someone to contribute, check, it was £8,000. Above that amount, they won't contribute more. So if you speak to your penal administrator, if they agree for you to put this extra amount, then they will match just the amount that they agreed to. Thank you. All right. All right. Well, it's been a very long session again, we've done it again. We ended up doing double the time. We've got to learn how to keep the time. But you guys are so many questions, questions. So I'm just going to draw the curtains here. But before we go in February, we've got something special coming. I do want to announce it to the end because I want to only stay to the end to get it. Thank you. So much. Ali, we've got a challenge, seven days to start investing. It's going to come in February. So I don't know if any member of my team could share the link to join. So this is like it's free challenge, the free seven day challenge. If you want to start investing, you're not sure where to start and you were not able to get into the mastermind obviously because it's probably will be full now, then we're going to do that seven days. The the game is that within that seven days, at the end of that seven days you should be able to start investing. What we are going to address in that seven days will be things like, let's say I think I've got a slide for it. One minute. Seven day investing challenge. So there's going to be daily actionable steps to optimize your taxes and start investing before April 5th. It's going to be from 1st to 7th February. For those who joined probably going to be first or second, but I think it's first would be a good day to start seven day challenge. And if we say there are seven things you need to do before you start investing, we're going to go through all that within the challenge. So if you, if you've had difficulties, you've not gotten your ISA set up, then you can set it up during the seven day challenge. If you've got like, let's say you haven't got your income protection and the rest of them, you can do that during your seven day challenge. And if you don't understand, oh, which account should I use for investing? Have I got my emergency fund? You should do all that during the seven day challenge. So I think you should sign up for it. The link is in there chat box and I might also email it to you. So that would be what we'll be doing for February. But we should do it early in February because I'm traveling, you know, Valentine's in February, so I'll probably be traveling with my, my babe, my wife. All right, okay. Right. Should we draw the curtain here? Thank you so much, Dr. Egwene. Sorry, I was asking a question. What was the question? So as about tomorrow's Mastermind class, have you sent an invite already? All right, that would be, that will be sent to you directly. Yeah. So that'll be 8:30pm yeah. Okay. Right, okay. All right. Thank you so much. Thank you everyone for your feedback and thank you again. If you want to leave me a feedback that I can see and read later, then do it on Senya. I think the link you just shared earlier on, if you. If you want to send me that feedback, I really appreciate it because then it helps us feel better about ourselves. All right, well, thank you, everyone, and thank you so much. I really enjoyed this session, but I guess you are just as drained as I am. Maybe in future sessions we'll have a few breaks in between, but thank you for joining me. Have a lovely evening yourself.