Reply to: $300,00 in the bank

[Sergeant Apone]

I try to leave the money in the company coffers until I need it as well. This is mainly because it keeps it out of the hands of Mrs Sergeant Apone, who would only otherwise spend it on tulipe.

[ChimpMaster]

Both - the majority (70%) being within the company

I'm in a similar situation with the 70/30 split.

I take out/pay myself below the 40% threshold and the bulk remains in the Co. I was thinking that maybe it would be best to keep it there and use it to finance my "downtime" or even my retirement.

There is the risk however, that the Government may change taxation laws on funds held in the company. There's also the problem of IR35, which may or many not apply, once HMRC decide what IR35 actually is. Furthermore, it is somewhat painful to have the bulk of my hard earned money where I cannot spend it.

It would be nice to have it in my personal account where I could fund alternative investments, or just buy that flash car I always wanted!

T

[Sergeant Apone]

And if I don't get infirm or lose my marbles the instant I retire? I'd rather have some money to avoid a cold, dark, lonely and boring existence until I do.

Don't worry, wendigo100, the state will support you (unless you have any dough salted away, in which case you were clearly an evil, greedy, middle class scumbag and can f.o.a.d.).

You may think this absurd, but this is what the state is encouraging people to think with its current policies.

[eternalnomad]

Just out of interest, is this chunk of money being built up inside, or outside the company?

Whats better in terms of tax? I was thinking about building up a lumpsum in the company and then continuing to pay myself a salary for the future, supplemented by a few jobs here and there. But I'm sure there could be a better way...

Both - the majority (70%) being within the company

[ratewhore]

Just out of interest, is this chunk of money being built up inside, or outside the company?

Whats better in terms of tax? I was thinking about building up a lumpsum in the company and then continuing to pay myself a salary for the future, supplemented by a few jobs here and there. But I'm sure there could be a better way...

[AlfredJPruffock]

And if I don't get infirm or lose my marbles the instant I retire? I'd rather have some money to avoid a cold, dark, lonely and boring existence until I do.

My only consolation would be knowing that my friends in New Labour will be well looked after, following their years of selfless service to the nation.

Aye W

How very public minded of you,I am looking forward to donating my body, after it has expired of course,to New Labours Social research program.

My advice to those who die, declare the pennies on your eyes ..

[AlfredJPruffock]

Here with a Bag of Crisps beneath the Bough,
A Can of Beer, a Radio - and Thou
Beside me half asleep in Brockwell Park
And Brockwell Park is Paradise enow.

Some Men to everlasting Bliss aspire,
Their lives, Auditions for the heavenly Choir:
Oh, binge on your Credit Card and waive the Rest -
Brave Music of a Distant Drum !

The Material World ...No place for a Gentleman .

AJ Pruffock

[wendigo100]

Screw that, piss it up the wall while you can enjoy it. Your only reward for being frugal and responsible when you get infirm and/or lose your marbles will be for the state to seize your assets in order to pay some Eastern European teenager to abuse you and steal your belongings in the local council "care" home.

And if I don't get infirm or lose my marbles the instant I retire? I'd rather have some money to avoid a cold, dark, lonely and boring existence until I do.

My only consolation would be knowing that my friends in New Labour will be well looked after, following their years of selfless service to the nation.

[Sergeant Apone]

Screw that, piss it up the wall while you can enjoy it. Your only reward for being frugal and responsible when you get infirm and/or lose your marbles will be for the state to seize your assets in order to pay some Eastern European teenager to abuse you and steal your belongings in the local council "care" home.

[wendigo100]

oh dear,

no, you need about a million GBP or more,

keep going

Milan.

To be "comfortable", you are right milan.

Safely tucked into a bank, £1 million might earn you 50 grand a year before taxes, which are significant, and don't forget capital reinvestment. Inflation will make that million seem an awful lot less if it ever rises above 3%.

Furthermore, being retired, you will have a lot more time to spend money in, and as you become "less able" you might be paying for household and car repairs and servicing that you'd previously done yourself.

[eternalnomad]

Be careful.

Would you invest in Zim government bonds? I am certain that South Africa will go the same way.

Anyone else got any other suggestions on decent "investment opportunities" ?

I am only looking for relatively low risk (and yes I do realise this will mean lower returns) but there must be ways of safely getting more than the 4-5% the banks want to pay

[EternalOptimist]

she does indeed


does it seem a bit low to you Wendigo ? We settled on a figure of £60 pw a few years ago, but I spend less time in hotels these days so I upped it.

[wendigo100]

Thanks for the recommendation I may take a look at South African governement bonds.

Be careful.

Would you invest in Zim government bonds? I am certain that South Africa will go the same way.

[wendigo100]

I have this friend who is 50 and who plans to mostly retire at 60 with about £300k.

At 5% this will give him about £275 pw
plus £40 pw from previous sh!te occupational pension
plus £110 pw state pension
plus odd job money

outgoing

£100 to wife
£50 beer
£10 kebabs

leaves over 200 pw spare.

my friend manages on less than £100 spare at the moment

Does the wife pay council tax and water rates out of the £100?

[eternalnomad]

You may want to look at South African governement bonds or stock exchange or even savings accoutn in a bank there.

If you do the math, if you had bought ZAR in 2001 say 100K and about 20 to 1, you would have just about doubled your money in £ terms(FX is now about 11 to 1) ans well as earning approximately double the amount of interest in a fixed savings account there.

I am no economist but it appears that the strength of the dollar dictates the relative strength of the Rand, so short and medium term I would imagine that the exchange rate will hover at about 10.5 11 to £1 if not imporve further.

Somthing to look at, DYOR

Thanks for the recommendation I may take a look at South African governement bonds.