New tax year, new plan

Love seeing finances talked about on the indie web. Money market funds for the win.

Worth a reminder cash ISA limits for under 65s drops to £12k next tax year from £20k this year. one can still use the overal £20k by using a stocks and shares ISA.

For day to day expenses, I’m just transferring what’s needed from the savings into current account. I keep track of the whole thing on a quarterly basis by reviewing current valuations and trailing 12 month non-discretionary spend. This helps to decide appropriate points to top up the cash buffer.

More recently I’ve been creating part of the cash buffer inside the SIPP itself. This is done by selling down index funds and buying MMF which are essentially like a safe savings rate. Because the buffer is four years in size, and I make annual withdrawals from the SIPP, it doesn’t all need to live in taxable cash accounts. I may as well earn a little bit of tax free interest inside the SIPP. It also gives the possibility of perhaps re-investing it if my plans changed (for example, receiving a large cash sum from somewhere).

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