Saving Ideas vs Pension

[minestrone]

I want my pension to cover my basic day to say costs from 60 onwards (considering my house will be paid for) . That is about 1 grand a month really. My pension pot is pretty much there for that, the rest I chuck into ISAs and then into managed funds.

Should get a mix of pensions and tax efficient savings, the rest blow on coke and hookers.

[Hex]

Don't do an insurancy company's pension. Get yourself a SIPP. Pay in something every month and manage it yourself buying funds and/or shares the same as you are doing outside the pension.

Put in whatever you feel comfortable with. I'd get saving for a house, get a nice car, have great holidays, but with 6K coming in and only 1K going out, you could afford to put 1K a month into a pension if you wanted and it is very tax efficient through your Ltd Company.

For me, I'd buy some boring income fund (like perpetual high income) with what goes in. Have a look at sippdeal.co.uk and also hargreaves lansdown. Do your own research.

Spread your money about - a bit of pension, a bit of property, some cash, some holidays etc. That's what I'd do anyway.

[hyperD]

To be honest, it's all going to go Tango Uniform soon, so I'd get the best hookers money can buy and the best drugs.

Eat foie gras for breakfast, caviar for lunch and lobster thermadore for dinner. Drink only Krug champers. Visit every country in the world. Learn to fly a plane. Punch a politician in the face. Every day. Preferably the same one.

Windsurf, climb mountains, swim with the fishes in the Maldives, drive a Ferrari and a Lambo, have fun, make a tramp happy by buying him a crate of alcohol free wife beater, don't bother getting married in the UK.

Do something exciting with your short life every day.

[escapeUK]

I want my pension to cover my basic day to say costs from 60 onwards (considering my house will be paid for) . That is about 1 grand a month really. My pension pot is pretty much there for that, the rest I chuck into ISAs and then into managed funds.

Should get a mix of pensions and tax efficient savings, the rest blow on coke and hookers.

Dont forget your state pension. My experience with my two grandmothers, one without pension, one with her husbands good pension. They both got roughly the same as if you provide for yourself, you get no state help. If you dont the state pays for you, no housing costs, no council tax etc etc

[dundeedude]

Thanks for all the responses.

I think that it would be a good idea to ignore a pension until I'm 30 years old and save money for a house/flat deposit in the mean-time. I have a good arrangement and live with a friend when I'm not working at other client sites in the country, so don't think giving that up is a good idea if I can help it.

I really don't like the look of using my stocks&shares ISA allowance this year or putting further money classed as 'savings' into share dealing. I've lost quite a lot over the years, offset by a small gain in some stable company shares providing dividends. I receive the usual Hargreaves Lansdown mail-spam every week and can honestly say none of the funds on offer really appeal to me.

I should add that I expect we're going to have a major stock-market crash, to compliment the downwards trend, in the next few years, which is another reason I have no idea how to save now.

I'm guessing most of you don't place much money in standard savings accounts?

[sasguru]

Personally I've always thought that the best thing to do, if possible, is to get a roof over your head that is paid off.
This give you the flexibility to do what you want to do with your life. No one can kick out and you won't be paying extortionate rent for the rest of your life.
Plus a property can act as a self-contained income in perpuity if it is in the right area/condition.

If you happen to buy at the bottom of a trough, even better - but the above advice will always remain true on this crowded island, barring a black swan event.

[Mich the Tester]

Personally I've always thought that the best thing to do, if possible, is to get a roof over your head that is paid off.
This give you the flexibility to do what you want to do with your life. No one can kick out and you won't be paying extortionate rent for the rest of your life.
Plus a property can act as a self-contained income in perpuity if it is in the right area/condition.

If you happen to buy at the bottom of a trough, even better - but the above advice will always remain true on this crowded island, barring a black swan event.

Shocking maybe, but I agree with SG. The sooner you pay off your mortgage and any other debts the better; then you don't have the pressure of needing well paid, stressful employment and you can happily go back to college, become a rather slow, doddering old bike mechanic or write a book about the world's finest spicy sausages.

However there's still a risk; governments desperate for money who then try to tax your arse off for owning paid up property. That might happen here in NL seeing as thanks to the abject incompetence of the current Prime Minister, the former communist party are now leading the polls with a couple of months to go to an election. So once you've paid it all off, perhaps a good idea to piss off to somewhere more civilised that has UK style property protection, universal healthcare, no chavs and lots of sunshine; Tonga looks like a good place to be, and I've heard good things about Trinidad and Tobago.

[ChimpMaster]

<snip>I should add that I expect we're going to have a major stock-market crash, to compliment the downwards trend, in the next few years, which is another reason I have no idea how to save now.

I'm guessing most of you don't place much money in standard savings accounts?

Personally I think you're right to ignore the pension, but ignore it forever as it's an inflexible rip off that you have very little control over. I also think the stock market will crash, after rising for the next few months first. Long term, you should have some of your portfolio in shares, perhaps 10% - 20%.

Stick to a few choice funds that are likely to grow over the next 20 to 30 years - think long term like China perhaps.

Aside from that, the bulk of my investments are in property. Aside from where I live, we own a small number of BTLs that will eventually become mortgage free and provide income during our later years, or for when our kids University fees need paying etc. You can buy a BTL with 15% down and let the rental income pay off the mortgage.

Age is an important factor but it seems like you are probably mid-20s? So you're starting young and that is the best thing you could do. I didn't start until I was in my early 30s, dammit.

Have a financial objective: for example, aim to have £2,000 residual income coming in by the time you are 40. This would be made up of all your investments, whatever they are... and would be counted after your main mortgage is paid off.

Remember 2 things though:
1) Be prepared for benchtime.
2) Have some fun along the way - you're only young/single/free once.

[sasguru]

Have a financial objective: for example, aim to have £2,000 residual income coming in by the time you are 40. This would be made up of all your investments, whatever they are... and would be counted after your main mortgage is paid off.
.

That's almost exactly where I'm at

[doodab]

That's almost exactly where I'm at

Only 3 more zeros to go eh?