Reply to: Pensions

[DimPrawn]

But that works both ways - you pay for insurance. If you live to be 110 then an annuity would still be paying out. Your £500K savings would be long gone and your children or grand-children will be paying for you. Will they thank you for that?

We're just taking grandad for a walk in the woods ......

If you spent the £500K on property, you could live off the rental income forever. When you die, the £500K goes to your family and not some slick tw@t in the City.


HTH

[DiscoStu]

It was that grainy mustard though and we quite like that, remember?

Oh, yes, forgot, sorry!

[Diver]

Property or antiques, the only safe long term ventures. I invest in both.
Better returns than any pension plan

[Gonzo]

The worst aspect of pension is the inflexibility, and the fact that your hard earned pot of money has to be traded for an annuity, and hence you cannot pass on this wealth to your children or grand-children and that after paying £500K for an annuity, you will probably cark it 3 months later and make some actuary in the City very rich.

But that works both ways - you pay for insurance. If you live to be 110 then an annuity would still be paying out. Your £500K savings would be long gone and your children or grand-children will be paying for you. Will they thank you for that?

We're just taking grandad for a walk in the woods ......

[Spartacus]

It was nice, shame they used French instead of English mustard though.

It was that grainy mustard though and we quite like that, remember?

[DiscoStu]

I enjoyed that. Wolfed it down.

It was nice, shame they used French instead of English mustard though.

[sasguru]

Oh, and a ham and tomato sandwich with mustard, although that won't be much of an investment in the future as I'm going to eat it now.

I enjoyed that. Wolfed it down.

[Spartacus]

Remarkable. Snap. Down to the tiniest detail.

Oh, and a ham and tomato sandwich with mustard, although that won't be much of an investment in the future as I'm going to eat it now.

[sasguru]

That may be so but you always need a baseline to measure other schemes against. If it can't do better than turn that amount into £500k in today's money then look elsewhere.

I likes to be thorough. Personally I have a mixture of cash on deposit, ISAs and a pension. Plus some bonds, an endowment (don't laugh), life assurance policy, friendly society account and a house!

Remarkable. Snap. Down to the tiniest detail.

[Spartacus]

Are you sure you're not Dwayne Dibbley?

No, I'm sure I am.

[Spartacus]

Gosh, you sound almost exactly the same as sasguru there!

Funny that.

[DimPrawn]

That may be so but you always need a baseline to measure other schemes against. If it can't do better than turn that amount into £500k in today's money then look elsewhere.

I likes to be thorough. Personally I have a mixture of cash on deposit, ISAs and a pension. Plus some bonds, an endowment (don't laugh), life assurance policy, friendly society account and a house!

Gosh, you sound almost exactly the same as sasguru there!

[Spartacus]

Take off inflation and that equates to about £100K.

So saving money and paying tax on the interest is actually a good way of losing money.

Instead spend £1000/month on subsidising a BTL, and in 24 years it will be worth squillions. YOU CAN'T LOSE!

That may be so but you always need a baseline to measure other schemes against. If it can't do better than turn that amount into £500k in today's money then look elsewhere.

I likes to be thorough. Personally I have a mixture of cash on deposit, ISAs and a pension. Plus some bonds, an endowment (don't laugh), life assurance policy, friendly society account and a house!

[Dearnla]

Savings

But actually, the sensible answer is don't put all your eggs in one basket aka have a balanced portfolio.
Ergo, put some into a pension - yes it's locked away but that means you can't spend it on expensive toys (drat!). And it gets money out of your business account so that it doesn't go on tax.

Put some in savings and use your ISA allowance. Put some into property - you DO need somewhere to live, don't you?

Sadly, I am facing the fact that all the money I put away as a youngster isn't actually going to buy me much of a pension when I retire so I am facing the prospect of selling the house in 20 year's time and downsizing. Which should give me a sizable lump sum to buy that Ferrari...

Oh, and I'M SPARTACUS....

[TheBigYinJames]

I can't see houses being priced at £0.00 can you?

What's the difference between a house priced at £0.00 and one which won't sell, ever? If you want to see houses which are effectively worth nothing, then there are plenty around.