Reply to: Pension advice

[DimPrawn]

High-rate pensions tax relief faces axe - Telegraph

No tax savings on the way in, restrictive ever-changing rules and sky-high charges, followed by taxable income on the way out.

Still fancy the gamble on a pension fund?

[lukemg]

Own property is enough exposure to that asset class, no ? BTL is a lot of grief and I am not sure of the numbers with an EA taking a chunk and house prices uncertain. If you are desperate to get exposure how about a REIT, or other property fund (I have some F&C commercial) which gives comm exposure too.
Pension wise, using a SIPP and aiming at HYP (bit patchy results over 18 mths but will come good over 5-10 I reckon)

Got lots of legacy funds going back 15 years and despite well documented dot com, and credit crunch crisis, they are mostly averaging a healthy 8%+ annual rise.
Not sure I would go that way now due to charges involved so plan to use low cost UK, US and ROW trackers where I can and build up HYP list in SIPPS and ISA.
Buy, hold, diversify, NEVER bet the farm and never panic.....

[russell]

(1) Pension - Take one out especially if you're going to be perm and the employer contributes (or do your own)
(2) ISAs - Max out your cash ISA each year & place in longterm 5 years.
(3) Share ISAs - Set your own up and manage
(4) Stock Trades - Trade up to your Capital Gains allowance each year
(5) Pay your mortgage off as soon as possible
(6) BTL - Build up 1/2/3 properties for income
(7) Premium Bonds - Little tuck away
(8) Funds - Invest in some high yield funds along the way
(9) Antiques - Invest in a few along the way
(10) Stick a gold bar under the bed.

Use all or a combination of these for your pension.

By the time you have invested using all of them you will have nothing left from all,the charges and fees, sticks to stocks Isa and property.

[ChimpMaster]

Why being a weedy lefty ponce doesn't fit with being a bastard landlord.

Why I've quit buy-to-let | Money | The Guardian

"Osborne, who is 40, single and lives alone"

Winner then?

[DimPrawn]

Zopa is not tax free though.

I tried to take out a Zopa loan a few weeks ago because I wanted some short term cash for my new build and got turned down which is even more annoying considering I'm also a lender on there.

Neither is BTL rental income and if your mortgage payments < rent, and if not, then all you are doing is gambling house prices will go up forever.

[MarillionFan]

I'd say Premium Bonds are a complete waste of money, tax free winnings at rate of less than 1% return overall.

Zopa is returning me over 6% which at least means cash is not being eroded by inflation.

Gold and property, fine wines, some stocks but not too much, ISA's good.



The other issue with pensions is the rules change, the money can't be touched, the tax benefits are dubious and I can see the state pension being means tested which means you won't get one if you have saved your own pension pot. Pension providers and funds go bust, SIPPS may be scrapped, who fooking knows what the next s in charge will do?

Zopa is not tax free though.

I tried to take out a Zopa loan a few weeks ago because I wanted some short term cash for my new build and got turned down which is even more annoying considering I'm also a lender on there.

[DimPrawn]

(1) Pension - Take one out especially if you're going to be perm and the employer contributes (or do your own)
(2) ISAs - Max out your cash ISA each year & place in longterm 5 years.
(3) Share ISAs - Set your own up and manage
(4) Stock Trades - Trade up to your Capital Gains allowance each year
(5) Pay your mortgage off as soon as possible
(6) BTL - Build up 1/2/3 properties for income
(7) Premium Bonds - Little tuck away
(8) Funds - Invest in some high yield funds along the way
(9) Antiques - Invest in a few along the way
(10) Stick a gold bar under the bed.

Use all or a combination of these for your pension.

I'd say Premium Bonds are a complete waste of money, tax free winnings at rate of less than 1% return overall.

Zopa is returning me over 6% which at least means cash is not being eroded by inflation.

Gold and property, fine wines, some stocks but not too much, ISA's good.



The other issue with pensions is the rules change, the money can't be touched, the tax benefits are dubious and I can see the state pension being means tested which means you won't get one if you have saved your own pension pot. Pension providers and funds go bust, SIPPS may be scrapped, who fooking knows what the next s in charge will do?

[DimPrawn]

It's worse than that, with a pension you're paying some twat to lose money for you.

At least this one actually promises to lose your money for you.

Clerical Medical's Cash Pension: The investment fund that is guaranteed to lose you money - Telegraph

[Pondlife]

Minimum deposit for a place here in Munich! To cross the threshold of the door you need:

3 x months rent for deposit
1 x rent
2.4 x one month rent for agent provision
Perhaps you'll need to buy your own kitchen.

So a €2k a month rent (average for somewhere decent) you need €9k on the first day.

Tenants in the UK - bless

Theiving Makler Bast@rds They make our pimps seem reasonable.

[scooterscot]

Why being a weedy lefty ponce doesn't fit with being a bastard landlord.

Why I've quit buy-to-let | Money | The Guardian

You hear all kinds of horror stories, such as three months' rent in advance

Minimum deposit for a place here in Munich! To cross the threshold of the door you need:

3 x months rent for deposit
1 x rent
2.4 x one month rent for agent provision
Perhaps you'll need to buy your own kitchen.

So a €2k a month rent (average for somewhere decent) you need €9k on the first day.

Tenants in the UK - bless

[MarillionFan]

(1) Pension - Take one out especially if you're going to be perm and the employer contributes (or do your own)
(2) ISAs - Max out your cash ISA each year & place in longterm 5 years.
(3) Share ISAs - Set your own up and manage
(4) Stock Trades - Trade up to your Capital Gains allowance each year
(5) Pay your mortgage off as soon as possible
(6) BTL - Build up 1/2/3 properties for income
(7) Premium Bonds - Little tuck away
(8) Funds - Invest in some high yield funds along the way
(9) Antiques - Invest in a few along the way
(10) Stick a gold bar under the bed.

Use all or a combination of these for your pension.

[russell]

Pensions are a waste of money, you basically can't touch the money until the government decides and the tax change risk is high. Property in a good historically rentable area (not some new build in an area that used to be a dump). A Self Select S&S ISA where you can put in 11k+ each, 22k+ for a couple. If you invest wisely over 20 years that could be near 1 million tax free. (22k x 20) I feel bad for people who were conned by the pension schemes.

[kaiser78]

Pension or holiday home ?

Holiday home as priority - for own use and also holiday letting to cover costs. Works out better and my IFA has concerns about pension situation when my time comes for retirement.

[DimPrawn]

Bank of England poised to restart QE stimulus - Telegraph

Research from financial services company Hargreaves Lansdown found that a 65-year-old man with £100,000 could have bought a level income of £7,855 in July 2008, but someone in the same situation today would only receive an income of £5,923, a drop of just under 25pc.

Dr Ros Altmann, director-general of Saga, said the "short-term stimulus" of QE has "very dangerous long-term consequences".

She said: "Buying gilts is not the best way to stimulate growth - it does, of course, help the banks, but it actually has side-effects that directly damage the economic outlook.

"Having more and more poorer pensioners and forcing companies to put money into their pension schemes, rather than their business operations, is a drag on growth, not a boost."

She said tumbling annuity rates mean that "over a million pensioners will be permanently poorer for the rest of their lives, as they have bought an annuity at rates that have been artificially depressed by the Bank of England".

"The impact of QE on pensions and pensioners will lead to lower growth, so we urge the Bank to consider different ways of using newly created money to try to boost the economy."


Versus


Rents soar to record levels | Money | guardian.co.uk
Loans squeeze spurs buy-to-let boom - FT.com

[MarillionFan]

Why being a weedy lefty ponce doesn't fit with being a bastard landlord.

Why I've quit buy-to-let | Money | The Guardian