Cdc and Avc

[RobertT]

That doesn't actually say all the charges are taken from the Cash fund!

It says any cash held in any one fund is used to pay charges first and then from the least volatile fund.

In practice the Cash fund, if you have it, may never need to be touched. Although it could form some of the answer to mrcurves query?

[Steve_claret]

I currently invest in 3 funds Cash, Cautious and Sharia. The charges for all 3 funds are taken monthly from my cash fund. It goes down by about £1 per month at the moment and I get a monthly statement saying how many cash units I need to sell to pay all charges.

[RobertT]

My bad!

I've invested in AVC's for 20 odd years and never realised that! Maybe it was different back in the 90's?

I've had to look at a few documents on the money4life website and have found what you're referring to, although I can't recall ever having anything on paper.

You learn something new everyday!

[mrcurve]

Many thanks Steve, I must admit it was getting quite hard to leave so much in cash. Now I know why it's going down in value; I am much more reassured.

[Steve_claret]

As a recent newcomer to AVC's I have only ever invested with Scottish Widows and that is the way I have always understood how you pay their management fees. This is why I don't worry if the cash fund loses a little bit each month whereas if the other 2 funds lost money now that would be a little more worrying. Perhaps previous providers did things differently?

[heapsy]

Assuming you are full time, 38 hours, does anybody know how much you can pay into AVCs and remain in PSE? Thanks in advance.

[RobertT]

Assuming you are full time, 38 hours, does anybody know how much you can pay into AVCs and remain in PSE? Thanks in advance.

Personally I've never paid the maximum into AVC's, but as far as I'm aware the method for working it out is:

Basic RM hourly wage – national minimum wage x basic hours worked = max AVC amount

Or in money terms factoring in the 1% pay rise:

12.05 – 8.91 x 38 = 119.32

I think you know yourself that paying in a bit less is advisable.
Plus any other tax efficient savings through payroll, such as the P&M share scheme or Cycle2Work, will need to be factored in.

[heapsy]

Cheers. Yes I'm under the figures you've come to. Just checked my AVCs this morning, looks more interesting.

[heapsy]

We've just gone on to the 37 hour week. For those interested, the new pay rate for full time is £12.37. Using RobertT's example above, a quick recalculation tells me the new maximum figure for AVCs for full timers is around £128.00 per week.

[k979aaa]

Have you done your revision to be on 37 hours yet?

[heapsy]

Yes