My financial plan called for three months of reserves, at 1K per month. Unfortunately I've been held up for three weeks for a new contract to start, after looking for one month to find the contract, and now (See post Urgent: Can I sue) the three month contract has collapsed.
So I have no reserves, and will be out of cash in about 15 days... I could be going permie, and not at a good salary, within a few weeks unless I find something
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Reply to: How much is enough?
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "How much is enough?"
Collapse
-
Originally posted by Cheshire Cat View PostAnyone got any other decent ideas about providing for later life, whilst still having a reasonable life now?
Then I commended mirth, because a man hath no better thing under the sun, than to eat, and to drink, and to be merry: for that shall abide with him of his labour the days of his life, which God giveth him under the sun.
Isaiah Chapter 22 verse 13:
And behold joy and gladness, slaying oxen, and killing sheep, eating flesh, and drinking wine: let us eat and drink; for tomorrow we shall die.
HTH.
Leave a comment:
-
If you get 10k salary and 10k pension, won't this give hector some ammo in a tax investigation?
Leave a comment:
-
Assuming I continue to work for the next fews years, and my LtdCo turns over £100k p.a. then I will pay myself a 10K salary. After other expenses, then CT, there should be about £67k profits p.a.
I can draw ~ £30k before higher rate tax (making my personal net income ~ 39k)
That will leave ~ 37k left in LtdCo each year. I could issue further dividends, and lose 22.5% of this to personal tax. So I would see ~ 28k net.
I coudl pay capital off my mortgage balance. Or put £7200 into an ISA and the remaining ~21k into the mortgage.
The ISA option would possibly yield about 6% p.a. tax free interest (at current rates).
Assuming my mortgage is also @ 6%, the advantage of paying into the ISA or reducing the mortgage balance would be comparable.
Alternatively, I could pay directly from my LtdCo into a pension fund (with the obvious restriction that I cannot then access this money until I retire @ 55-65 - unless I emigrate and take my pension "pot" with me).
The advantage of this is that LtdCo tax bill reduces by ~2k, and so the profits available for dividends are reduced by ~8k but there is 10k in the pension fund.
I guess the pension contributions could be the most tax effective route, since it would still allow me to draw some "excess" divs from the company to pay into an ISA and off the mortgage, whilst having a pot that I can't access and spunk on a lamborghini when I have my eventual mid-life crisis.
Anyone got any other decent ideas about providing for later life, whilst still having a reasonable life now? I know the arguments for BTL and also for keeping money in the company to draw on (much) later. Any other efficient ways of saving/investing that other people on here use?
Leave a comment:
-
Originally posted by TheBigYinJames View PostAbout 70 miles north of you Also I bought my 4-bed semi house during the LAST housing crash, so my mortgage is only about £400 a month
Leave a comment:
-
Originally posted by backlight View PostWhere do you live - I pay about that for a 1 bedroom flat in London.
Leave a comment:
-
Originally posted by TheBigYinJames View PostThats what i use for a 'working month' (i.e with petrol and other work related costs) it's nearer £1500 if I'm sitting at home watching Diagnosis Murder. Which means I have enough dosh in the bank to see me through a couple of years of Dick Van Dyke at least.
Leave a comment:
-
Originally posted by TazMaN View PostI tend to value my outgoings at circa 2,000 a month, to cover all family costs and outgoings (including socialising).
Leave a comment:
-
Originally posted by bobhope View PostThat's a great quote. Just checked the spreadsheet - 16.5 years at current expenditure levels.
I tend to value my outgoings at circa 2,000 a month, to cover all family costs and outgoings (including socialising).
Leave a comment:
-
Originally posted by bobhope View Post:-)
That's a great quote. Just checked the spreadsheet - 16.5 years at current expenditure levels.
The only problem is the uncertainty over inflation.
For which you'll probably get stabbed by some parable-ignorant hoodies.
Leave a comment:
-
Originally posted by thunderlizard View PostIf I had the propensity for that level of planning I'm sure I wouldn't have ended up as a contractor.
I'd say about 6 months if the minimum. Any less than that and I'd be taking on rubbish contracts just to get a few pence in the coffers. But I'm a frugal sort, so I've got about 15 years' worth at present.
That's a great quote. Just checked the spreadsheet - 16.5 years at current expenditure levels.
The only problem is the uncertainty over inflation.
Leave a comment:
-
Originally posted by Bagpuss View PostPharma doesn't pay £500 a day :-( , except on rare occasion. although we're not quite in the £200-£300 league. Still that doesn't stop me being a tight barsteward with 10 years money in reserve.
Sometimes I which I hadn't bothered doing an MSc and just gone into financial, they seem to pay 500 a day for the most basic of skills.
Unlucky.
Leave a comment:
-
Pharma doesn't pay £500 a day :-( , except on rare occasion. although we're not quite in the £200-£300 league. Still that doesn't stop me being a tight barsteward with 10 years money in reserve.
Sometimes I which I hadn't bothered doing an MSc and just gone into financial, they seem to pay 500 a day for the most basic of skills.
Leave a comment:
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: