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Improve your income through tax planning

Our reader can improve his income with some tax planning and should consider cutting his equity exposure
May 4, 2017, Danny Cox & Jeremie Vuillard

Jon Mackenzie is 65 and married with two non-dependent children and three grandchildren. He intends to start drawing down from his self-invested personal pension (Sipp) in July when he turns 66.

Reader Portfolio
Jon Mackenzie 65
Description

Sipp & Isa

Objectives

Supplement pension income

Portfolio type
Managing property investments

"I will reinvest my tax-free lump sum worth 25 per cent of the Sipp in my stocks-and-shares individual savings account (Isa) for emergency funds, and use some for property improvements," says Jon. "I'm not overly optimistic about returns from my Sipp and realistically would only expect 3 per cent. But we live a modest lifestyle and don't have any debt or mortgages, so think we could live quite comfortably on £30,000 a year - or even £27,000.

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