So the £17 I blew from my first 4 years of pension contributions when I changed jobs at 20 would now be worth somewhere between £180 and £1800? At the former I'm glad I squandered it on a booze up. At the latter (probably not attainable) it would have added at most a pint a week to my beer pot.
Which opportunity did you pursue?
Noi-one's mentioned tax.
Same here.
We've saved and know that if we die tomorrow those savings will still be there. Pensions wouldn't.
?Mary
Actually, before she went and did this day with the tree fellars going to the JC was on her 'to do' list. I'll relay your advice and the rest is up to her.
All the best and thanks again ..
T i m
I was thinking further about the whole pensions thing (not too deeply, it all depresses me) and thought I might just keep collecting gold. Then I thought that knowing my luck they would find a cheap way of synthesizing it (from old catalytic converters or summat) and gold would then be worthless. Goodbye pension (again).
When the revolution comes and a wheelbarrow of £20's will get you a loaf.
The other pension plan is the bricks and mortar one. BIL (a builder) now has about 10 places he rents out and the logic was that if it hit the fan he could always sell one (some) and stay afloat. Not sure that would be quite so easy today so we just have to hope the tenants don't lose their jobs etc.
All the best ..
T i m
Don't do it. That way lies discontent. Live the moment, it's the only important time of your life and might be the only one. ...
You're not saying that you can BUY a loaf???
The other is to have nothing, no pension, no savings, no house (which won't last for ever and might not even be saleable).
There's no certainty in any financial scheme.
Except taxes.
Mary
First ScotRail ;-(
Owain
Hermit then.
The guards on South West Trains are hermits. Whenever the teenage unwashed play up on the trains, they are nowhere to be found.
Probably but we aren't really talking about just =A31 and that's it. Put= in =A31000 and you have =A3117,390. Or put in just =A31000/year and have =A3=
1,397,690 at the end (50 years @ 10% compounded anually)Done properly you don't pay tax, or not much... Don't forget you get tax= relief on payments into pension fund. So that =A31,000 out of your walle= t above would actually be =A31,200(ish) going into the fund. End result ne= arer =A31.7M.
Everyone can put up to =A37,000/year into an ISA. There it escapes the clutches of income and capital gains tax. Note the "up to", even a littl= e is worth it IMHO.
Private Company Pensions I'd agree but that isn't the be all and end all= of pensions. It's a bit harder for an investment company to do a runner,= though it does happen via bad investment decisions or fund conditions.
Bear in mind that most companies see the great pot of money in the companies pension fund as "lost money" that they'd rather spend on the company. There is a great temptation to dabble their fingers in it.. With investment company pension funds the investment company is making money from the money in the fund it makes sense for them to take care of= it.
If you're dead why do you need the savings? You don't want them part of =
your estate, especially if you have decent house otherwise the chances a= re government will take big chunks of it... Inheritance Tax planning needs = to be done fairly early to get your estate below the threshold, you can't just give cash or property away at least not in significant amounts. One= has to be a little cunning and employ tax avoidance techniques.
I've got one of those from my only staff job, it just sits, follows the =
RPI more or less worth, about =A34,000/year ATM I think. I'm fairly sure= that as soon as I can take it I will but close investigation of figures =
will be required.
So, not being savvy to all this (based on lack of interest I guess) ... how does your plan stack up against the idea of an endowment policy?
When I was buying this house a good family friend (a solicitor and who did the conveyancing for me) suggested an endowment mortgage would be best. I chose a basic repayment job. I finished paying for this house when I was 40 and he's still paying for his. Basically the big pot of gold he was promised turned into a pot of poop, leaving him well sort of his final mortgage sum? :-(
I have no trust in people who just play with money, especially my money and earn money for themselves. I trust tradesmen, folk who actually do tangible things, not bean counters. I think there was room on the Golgafrinchan Ark Fleet. Ship B. and if I had my way ... ;-)
All this hedge betting and trading currencies against each other ... it's all just another form of gambling to me and I just wish they all got real jobs. ;-)
And please don't ... more ways of pouring my money down someone else's drain ... :-(
All the best ..
T i m
A lot of endowments were mis-sold, hence all the appeals and compensatio= n schemes in place though I think the deadline for applying/appealing unde= r those rules is rapid approaching or may have passed.
I wouldn't touch an endowment mortgage with a barge pole for buying property. I do have some endowment policies, bought from others who had = to sell them because of negative equity. I don't expect to make much on the= m, indeed I may even make a loss, but that's all part of the game. Other investments have given me some silly return like more than doubling my money in 5 years.
I don't trust either! But at least with a tradesman you can tell 'em to =
come back and fix their c*ck ups at their cost.
I don't like that or the futures market. I generally stick with "safer" =
longer term instruments that have a stable and steady history. I don't have the knowledge or skills play short term stuff or be able to afford = to loose the money...
Ah but simple tax avoidance actions can save and even generate quite a b= it of cash. What was the difference between =A31,000/year over 50 years and= 10% return as compound savings or pension fund =A3300,000... The ISA free of= income and capital gains, depending on how well the underlying investmen= ts do that could produce a good few quid in the long term compared to just =
bunging it in a savings account where you loose 20% of the interest as income tax *and* the capital shrinks in real terms.
I'm doing it to try and protect the value of the cash and build up a decent lump so I can retire early (55 would be nice but I suspect 60 is =
more likely) and not have to live on the bread line or have to keep working until I'm 66 and try and survive on the meager State Pension.
Temp agency is the way to go with that sort of thing. You can pack in whenever you like. You tend to do s**te jobs, but it's fine for a fill in.
...
This has been a most interesting thread, giving a lot to think about.
Thanks, Tim, for raising it.
Mary
The big pot of gold in endowment mortgages goes to the financial advisor, not the customer ;-(
Owain
That's standard behaviour everywhere.
It's surprising the number of people who can't work out how to put their ticket in the slot at the front of the gate. I wonder how some of them ever manage sex.
Of course the real thickoes just stand there looking puzzled waiting for their social worker to come and do it for them.
Owain
Thanks M ;-)
Well, it was ot: so I was glad for any replies and as always the interesting and diverse range of folk who inhabit this place came up trumps (as you say, given daughter and I plenty to think about).
All the best ..
T i m
p.s. We hope to the local Horticultural College open day on Saturday and we are now armed with a list of questions for them. ;-)
Grrrr ..
Now that would be fine if they took a nice cut *after* their client had been paid out.
Like I said, space is too good for them! ;-)
All the best ..
T i m
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