pensions

[rootsnall]

The tax breaks on pension contributions directly out of your Ltd are pretty juicy and IR35 future proofed. I'm paying a modest chunk into a SIPP each year and it's self managed in the stock market. You can take 25% of your pot as a tax free lump sum from 55, the rest you can 'drawdown' gradually or take out an annuity with and it'll be taxed at a theoretically lower rate ( + no NI ). The advantage ( or disadvantage !? ) of property is the gearing if you have a mortgage, overall returns are roughly the same as the stockmarket historically if the stats are to be believed. My anti BTL as pension reasoning is I've got plenty in property already and its due a bad spell. The taxman will get you one way or another whichever route you take.

[Troll]

what does the rest of the congregation think ?
Milan.

You forgot the bit about Gordo sticking his fingers in

[lukemg]

The tax breaks on pension contributions directly out of your Ltd are pretty juicy and IR35 future proofed. I'm paying a modest chunk into a SIPP each year and it's self managed in the stock market. You can take 25% of your pot as a tax free lump sum from 55, the rest you can 'drawdown' gradually or take out an annuity with and it'll be taxed at a theoretically lower rate ( + no NI ). The advantage ( or disadvantage !? ) of property is the gearing if you have a mortgage, overall returns are roughly the same as the stockmarket historically if the stats are to be believed. My anti BTL as pension reasoning is I've got plenty in property already and its due a bad spell. The taxman will get you one way or another whichever route you take.

He's right, spread the love people, chuck 3600 in a SIPP to keep a base covered and spread the rest around ISA's, property etc. Property has been a one-way bet for years and still cooking but might start going sideways/down soon, got a personal house I have invested plenty in, so that is covered. Also BTL etc is more grief than it says on the adverts and my ISA doesn't phone me at 2 in the morning because a pipe burst...

[ChimpMaster]

The only benefit of paying into a pension is if you're a permie and your owners are contributing into the pot.

[rootsnall]

He's right, spread the love people, chuck 3600 in a SIPP to keep a base covered and spread the rest around ISA's, property etc. Property has been a one-way bet for years and still cooking but might start going sideways/down soon, got a personal house I have invested plenty in, so that is covered. Also BTL etc is more grief than it says on the adverts and my ISA doesn't phone me at 2 in the morning because a pipe burst...

Current theory is its OK to match your pension contribution to your salary ( 9Kish ) and the taxman won't moan.

I had a bad run as a landlord, the worst tenant was a policelady whose policeman ex husband kicked the front door down at 3am in the morning ! The letting agents are nowhere to be seen when the tulip hits the fan.

[threaded]

I had a bad run as a landlord, the worst tenant was a policelady whose policeman ex husband kicked the front door down at 3am in the morning ! The letting agents are nowhere to be seen when the tulip hits the fan.

Well, that was asking for it really, could've told you that would happen. You should have asked on here before letting, I tell anyone, if you're new to the game: stick to older gents. Single professional women are a complete nightmare: that is why they're always stuck trying to find somewhere to live!

[rootsnall]

Well, that was asking for it really, could've told you that would happen. You should have asked on here before letting, I tell anyone, if you're new to the game: stick to older gents. Single professional women are a complete nightmare: that is why they're always stuck trying to find somewhere to live!

That one was out of my hands as they replaced a tenant when I was overseas and I waved it through from afar, I asked a copper mate about it later and he said the lady in question was a complete loon. The older single bloke does sound a good theory. I'm just trying to offload two properties rather than let them out.

[TheRightStuff]

do people here pay into a pension ? I've one left from my permi days, but don't pay into one now.

I think that if I put the same amount of money into housing as I'd put into my pension I'll be better off in the long run, also I can always cash in my housing, but I can't cash in my pension......

thoughts ?

I think we all agree. Pensions have a tax break but it's not worth it.
Annuities are rubbish and it's out of your control.
When you die that's it.
With property, shares etc. you have access and they all get passed on to wife, children etc.
For me pensions is a no no. Pensions are for the common majority who can't be bothered to research a few hours and think outside the box when it comes to alternatives.
I've dabbled in shares for a few years and have consistenly contributed alot towards the mortgage. Mortgage is now paid off and I sold all my ETF shares (China, FTSE 250, Brazil, EM etc.) a few weeks ago and have put all the money in the IceSave account (circa 6%). Account is in the wifes name as she is not working (tax free).
Looking to see what the markets do in the next few months as they are getting close to an all time high. Might go back to investing after the summer period is over.

[BlasterBates]

Stocks are the best, beats property easily even taking into account the current boom. The secret is to invest steadily every year, investing more when the markets are down, and less when the markets are high, though even in high markets there's always something you can find, somwhere in the world that's down. Eg Japan is quite low at the moment.

[TheRightStuff]

Stocks are the best, beats property easily even taking into account the current boom. The secret is to invest steadily every year, investing more when the markets are down, and less when the markets are high, though even in high markets there's always something you can find, somwhere in the world that's down. Eg Japan is quite low at the moment.

I would steer well clear of Japan as it needs alot of constant attention. It's had a good year last year but before and since then it's been poor. That's why there are Asia funds that exclude Japan.
I wouldn't say stocks have been better then property. With a property you can gear using a mortgage. With stocks your only using your money.