blonde poker forum

Hey,

Spittles had an interesting facebook status earlier which got me considering what I should/shouldn't be doing when it comes to National Insurance.

I've been playing full time for the past 18 months or so, should I be making NI contributions? I understand technically I am down as unemployed due to poker not being taxable. I know paying NI is a good way for having a state pension in the future, but I certainly don't expect to be grinding until I retire and expect at some point I will move on to a job where I will be taxed. What's the best way to approach this? Perhaps pay into a savings account and manage that myself?

You need 35 years contributions to get full state pension when you retire. If you plan to work a normal job for 35 years after you have finished with poker I wouldn't sweat it, if not you should pay the min requirement really to be safe. Don't know how mcuh that is though or how you do it.

definitely do voluntary NI contributions Jonathan

start here https://www.gov.uk/voluntary-national-insurance-contributions

Makes perfect sense, ty Tighty

I think Doobs will be the expert on this.

Long term you'd want to have some safe and diverse investments for your retirement.  The sooner you do this the better.

Don't just have all your millions in stars.

Go see a local accountant - who for about £120 - will set you up so that you do not have to make contributions - but the government will make your contributions for you

This is the key point, you will just be wasting money if you pay voluntary conts that could put you over 35 years. 

You can also backdate voluntary conts, so there isn't any rush to pay them anyway.

There is a limit how far you can backdate.

Can't for the life of me remember how long though. 10 years maybe?

https://www.gov.uk/voluntary-national-insurance-contributions/deadlines

Also factor in whether there will even be a state pension in 40 years when you are 65.  The pension age might be 75 by the time you reach it as well.  I wouldn't worry too much about it.  If you are successful enough as a gambler to not have to work all your life you shouldn't really be sweating the state pension.  Also the fact you have lived a gamblers life will make it much less likely you live well into pensionable age to worry about this.  IMO i wouldn't bother contributing.  I haven't for 12 years.

Nothing to stop you putting £2880 pa into a Private Pension JGill, currently HMRC top this up to £3600, free money's worth getting?

This sounds ideal, any links or ideas as to where is best to set this kind of thing up?

pretty sure if you head into your bank they will be able to point you in the right direction? might be wrong. been debating starting one myself recently

No charges to set up a sipp

https://www.youinvest.co.uk/

put in the £2880

govt magics it up to £3600

pick random stuff to invest in

profit???

ISA accounts too, 15k a year tax free into that, stocks and shares investments

Am I right in thinking you cant set up a private pension then claim a state pension, in which case it probably isn't worth making NI contributions if that's the road I'm going down?

As arb said, don't bank on the state.

If you pay the £2,880 into a SIPP you will get taxes on the way out either via an annuity or freedom lump sum (25% tax free atm) the free money at the start is notional tax relief. The tax applied will be to everything including your profit. I don't think its a hugely beneficial arrangement for non tax payers. I could be wrong but ISAs seem better. No free money but they can't tax my profits at marginal rate and I am not locking it away for 50 years.

SIPPs would have limited appeal for this level of contribution. Basic personal pension would be cheaper to run.

Nope, you can have private pensions and the state pension - the state pension is associated with your lifetime NIC contributions - not your other income sources, nor your level of income. Private pensions are in essence a long term form of savings which historically come with tax reliefs / incentives I.e. So are usually encouraged by the government ; taking away state pension eligibility would be a rather big (and unfair) disincentive :)

Pension Credits are means tested though. A cynic would wonder if auto enrolment is designed to slowly wean the country off state pensions. Although at minimal permitted level it's not going to buy many lamborghinis

I wouldn't be rushing in to a bank to get financial advice.

I wouldn't be assuming state pension rules are going to be the same when you retire as they are now.  The rules have changed multiple times while I have been working. 

NI contributions to buy state pension are normally good when you are old, but the above paragraph should mean that you are better waiting rather than buying them right now.  They are better value when you are older anyway. I assume we are talking what is good for young people. 

I think saving is good, as it is a good habit and should stop you blowing your entire life roll.

Yong people should't rush in to a pension when you aren't getting employer contributions, that can wait.  Most of the tax relief gets taken back when you take a pension unless your pension fund is small.

There really isn't any need for an ISA if you don't pay tax, but I'd probably just start one anyway.  If you get v rich due to picking up incredible tekkers from Pads, you might end up paying capital gains tax.  If your shares are in an ISA this won't be an issue.  You can always switch this money in to a pension later if at some stage that becomes beneficial.

As others have said, having a private pension is no barrier to having a state pension.

If you have debts, pay them first.

FWIW ISAs aren't without drawbacks.  If you find your self in bustoville, then your iSA is going to get taken in to account in situations where your pension isn't.  But the flip of this is you have some cash to spend before you have to claim benefits. 

Also ISAs and pensions have charges, if you have only got a couple of thousand or so, you are better just shoving it in a bank account with the best interest rate you can find.

If you are intesrested in shares, I'd start by reading something like fool.co.uk or moneysavingexpert

Not really interested in shares, feel like I gamble enough with my money as it is.

The only debts I have are student loan, but good thing about those (personally) are that you only have to pay them back when you are earning x amount and they only charge a %age of what is earnt (meaning I figure I may as well try and fade it whilst I am able to as inflation continues and end up paying it back when it costs the least amount to do so as the student loans don't increase over time). Is this going to give me greater barriers further down the line when I come to look for a mortgage or whatever? (Not sure when that will be, but def not near future).

I would recommend speaking to an IFA who can find the best ways for you to save/invest. I also would not go via the banks as any financial advisers they have will be tied to the banks products.

Best way to find an IFA is via recommendations from friends and family as you will be trusting them to some extent. A good IFA will keep an eye on your investments moving forward, but in my experience you should be wary of those that move your investments regularly (they will potentially get a fee every time they move) and also any investments that sound to good to be true.

IFA,s - the ruling changed last year i think and all IFA,s should be charging a flat fee on the money that the invest on your behalf typically about £3/4k for every £500k invested - one thing to check when picking an IFA is to see if they have a client account - if they have a client account it eases transferring money directly to them for investment.

+++++ Give up poker and become an IFA - the 3 i know all earn high six figure sums and work a couple of days a week

That would be an extremely good reason to avoid them

Not really they all provide a good service and work smart - if they are making you money you don't begrudge them making money -

spits coffee out

Don't want to derail too much but there is no evidence that IFAs are any better at stock/fund picking than a pin.  So if they are earning the figures you quote they are either grossly overcharging or involved in suspect areas that will no doubt be in the papers when it goes tits up.  

An IFA charging an hourly rate about the same as any other professional for basic financial planning advice is well worth the money, specialist mortgage brokers prob worth it as well if you are at all non-standard.

However the best advice to anyone is to educate themselves in investing and personal finance and the options.  If you ever become rich enough to require tax planning a specialist chartered accountant should be fine. Stockbrokers prob best for discretionary investment management.

This unfortunately.
In my experience a little footwork yourself and you can find same/better deals than an IFA can, without having to pay their wages

Just to confirm - when i used the word all - this related to these 3 guys - also they only handle portfolios over 500k -

Thanks to everyone in this thread, it compelled me to check it out for myself (not a poker pro but have been self employed for a long time so I wasn't sure what counted).

Quick Q if anyone knows. Are all qualifying years equal? Do two people who pay vastly different NI essentially get the same pension?

Yes, is the number of years you contribute, not the amount, I think you need 35 years contribution to get max pension.

Good stuff cheers fella

enough of NI shoelace

explain yourself

(https://scontent-lhr3-1.xx.fbcdn.net/hphotos-xft1/v/t1.0-9/11692750_990958620934645_3572905543541260176_n.jpg?oh=b2711abc7d591d0f3393cbb06a4e86cc&oe=561FBF94)

Ha

We went to a wedding a few weeks back where they had these weird photographers who had a load of props, spiderman masks, bo selecta masks and so forth. They made all the guests do one of these.

Wedding was also, clearly, a free bar.

there is such a thing a a wedding with a free bar?

wow you must have really rich friends

It was a cracking wedding actually. The Father of the Groom started by putting £500 behind the bar, so the Uncle of the Bride put a grand behind the bar, and it kept going like that. They also had an ice cream van turn up with free ice cream for all.

I wouldn't be happy turning up for a wedding and having to pay for booze.

Really? lol. Weddings are expensive things mate, I would never assume a free bar.

I've been to weddings where it's free all day/night, but others where the wine/day is free, and there is a bar in the evening.

I thought free all day/night was the occasional thing, rather than the norm.

Think this was the only free bar wedding I've ever been to. Been to plenty where a token amount was put behind the bar but it always quickly ran out. Also been to one where we had to bring our own booze.

All the recent ones I have been to have been free wine on the table, but pay for anything from the bar

normal that i goto is a free bottle of plonk between 6 or 8 with the meal and any other drink you pay for

most weddings i have gone to people are struggling to pay for the wedding never mind adding a free bar to it

I haven't been to huge amount of weddings (maybe an average of one a year for the last 10 years), but I've never been to one with a paid bar.

I don't think they are particularly rich, but maybe they are richer than I thought lol.  ;nipnip;

Or maybe I've been too drunk to remember paying.

In Slovakia admittedly the culture is different and whilst it is not a rich country it's custom to provide all alcohol and you take the number of guests coming and allocate them 1 litre of wine, 1 litre of Slivovice or spirit and 1 litre of lager/beer per head with it being an insult and bad wedding if u run out of alcohol :)

You also provide 3 meals during the 14/15 hour reception with the band playing until the last guests leave who are normally the bride and groom.

Crikey, that sounds like a chore

I need to befriend some Slovakians. That sounds amazing.

Eastern European weddings pwn ours imo they are full of quirky traditions and in the first 50 pages of my diary I think there is a mini video of our one.
They are much cheaper too as although we did all the above and got married in a castle it was done under £10k in total.

Camel should definitely befriend some random Slovaks as I reckon he would love one of their weddings but u need to do everything ie eat, drink and dance otherwise like my first one I was tucked up in the hotel at 9pm dead to the world.

Never been to a free bar wedding not that we do many weddings. If it was my wedding i'd be a bit inclinclined to say, aye up I fed you Iaint bloody watering you too. Selfish me.

I've been to a lot of weddings, probably more than a hundred. I don't like em to be honest but I'm obligated to go in most cases.

There has been some lavish affairs I can tell you, but definitely no more than two or three with a free bar.

I can't imagine anyone being unhappy because they had buy their own booze. What if the family weren't too well off?

i dont mind watering them, water is alot cheaper than filling them full of dancing juice

Erm, you might want to check this. In the old days the interest rate was in line with inflation so effectively nothing. However around the time I went to uni (a good 15 years ago now) that all changed and the juice was higher than inflation but lower than a standard loan.

Therefore if you ever get a normal job you'll have to repay it. But there are rules about hitting a certain age etc and never breaching the minimum threshold where it is wiped from what i remember.

Bump

Just wanted to say thanks to all in this thread, I check my qualifying years once a year now as a self employed fella, all pro poker players should too