Pensions ...

-Tom- said:
That's exactly my thinking Steven - just seems a no brainer if you do it intelligently. Student properties aren't a bad investment if you know the right places :thumbsup: I'm not planning on working for NHS for ever so will need to consider the options when I opt out.
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Student properties aren;t a bad option.

When I was at uni (2007). 4 of us rented a 3 bed (which had the dining room converted to a bedroom) terraced house in Hatfield. Must cost in the region of £160k.

We paid £270 each. £1080 PCM on a run down property in Hatfield isn't a bad return. The landlord must have put in minimal maintenance as they place (and most other places) was a wreck.

That said, it's more of a short term investment imo. I wouldn't want to work with student accomodation for 40+ years.

Taz is right though bad tennants could really create a headache. But personally I can't think of another option. I can't stomach paying £1k per month into a pension to receive less than £1k back. I mean, I could save that up for 30 years, buy a property for £360k (not incl any interest I'd receive), rent it out for £1800 PCM and take home £1100 - £1200 per month (taking into account tax and putting money aside for property maintenance etc.) from rental income and i'd still have a house I could flog for £360k if I ever got bored of the rental game.
 
Pvr, I don't know the exchange on the pound so I'm going to deal in $ CDN . If you put 1000 a month in decent investments (not mutuals) after 30 years you will have roughly a million. A million invested in blue chip with decent dividends pays approx 4% or $40,000. (Not including any capital increase of the actual stock ). My math says that would give you 3333.33 a month. Don't forget that you also take away some capital to deplete the assets to the point where you have enough to bury you at 90 and keep the wife going for the extra years she will outlive you. So roughly 4 grand a month til you die,..... plus your old age pensions from the govt at the appropriate age.


I retired March 1st, 2012 .
 
Or you could do what I have done....

Become so deep in debt you will never be able to afford to retire, and also become obese, meaning you will probably be dead long before retirement age anyway.

Just another option....
 
Never bothered with pensions myself to many people taking a cut.
 
I've been fortunate enough to retire to a final salary scheme pension. The rates being offered by the money purchase schemes these days is pathetic, but then it's a reflection on current interest rates I guess.
 
I plan on becoming a commodore, and have such a big pension I'll prob be better off than when I was working
 
Woots said:
I plan on becoming a commodore, and have such a big pension I'll prob be better off than when I was working
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Are you replacing Lionel Richie?

Sent from my GT-P1000 using Tapatalk 2
 
pvr said:
Just curious as I got a statement through for a policy I took out donkeys years ago.

Summary: By the time I am 65, I will have paid 30 years £1000 a month in this policy (not indexed).

Expected payout: £900 a month in today's money as per illustration, or £800 on combined life.

Perhaps I am missing something, but if that is the case how can that ever be right that I won't even get back what I paid in (as I won't survive until 95 most likely anyway). Looks like I would have been better off putting that in some sort of investment or even a shoe box ...

Another policy is reducing in value each year as well as the admin costs of the SIPP is higher than what it makes a year. Why did I even bother ....
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I had one worth £150k when I got divorced 10 years and managed to negotiate well enough to keep it all. It's now worth about £65k and will pay out about £1k per annum when I'm 65. I'm convinced that these "pensions" are not worth the effort. They are run by the same companies that made such a cock of endowment mortgages (remember them?) and they are there to make a profit, not look after the policy holder.
If you have £1k a month you'd be far better off investing in buy to let property. Income and your investment will grow too.......
 
ewwimbledon said:
What about the tax relief. You get 40% tax relief on contributions. That is worth something.
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Not when you lose 60% of the capital invested in 10 years!
 
ranski said:
ewwimbledon said:
What about the tax relief. You get 40% tax relief on contributions. That is worth something.
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But your taxed on it once you start receiving it?
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Yeah but probably not at 40%, unless you are on a frickin good pension.
 
Guys.... you must remember it's not the actual Pension that is bad.... it is where you invest the money within the Pension. If you invested years ago and left it in the same fund, then you will most likely have lost capital. However if you have reviewed it regulary and switched funds, then you would have grown your capital...even in recent times.

Think of the Pension as a wrapper, you just need to wrap it around decent funds.........So a Pension Policy is a good thing ...tax relief on contributions and tax free growth....then when you want to retire...look at the market....get the best deal....look at other options ....like drawdown (take out tax free cash) without purchasing an annuity...look at enhanced annuities (if you have health/lifestyle issues).

So the Pension wrapper is good (tax free contributions/tax free fund) but what funds you wrap it around is important...

if your Pension has lost/losing capital review the fund/funds now.......there are some good performing funds out there and you might have enough time to put it right.
 
Carol M said:
Makes me annoyed that we pay into a pension who, in effect, hold our money and get interest on it and then we don't get any of that back.
You would be better off sticking it into a savings account with a decent interest rate or an ISA.
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Carol, Problem is that at present, with inflation running at about 3-3.5 % there is no such thing as a decent interest rate. ISA's are returning about 1.7%, as are savings (with tax to pay} :headbang:

my wife's "Gold plated pension" after over 30yrs as a Teaching assistant is projected to be less than £6,000 per yr. :x

Regards, John Duggan aka The hairy angler
 
The pension game IMO it is only worthwhile for any in individual if their employers are topping up contributions & even then only as a back-up to other plans .For 99% of people its financially impossible to save enough per month to give you back an income which has any bearing on what you currently earn .
For those who are thinking "buy to let " ? Consider buying property 100/200miles away (or even further ) & do your homework , ,Yields of 10/12% are achievable .
There are properties ooop north going for £45/50k that would produce £5k income , , , 3 of those once paid for would return a figure only a 450k pension pot could match , , , ,& try saving that over 30 years :headbang:

& those folks saving £50/£100 a month & burying their heads under the pillow :wink: its not gonna be worth a balloon on a stick so stop now :thumbsup:
 
mr wilks said:
There are properties ooop north going for £45/50k that would produce £5k income
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Is that what the sales brochure says :lol: IMO total rubbish, you wouldn't get £2.5k and that's when you can actually get the rent off the tenant, before they start to trash the (already) derelict house!

The only thing you'll get when you purchase a cheap house (under £100k) is a lot of hassle from the tenant, we've a big portfolio in the BTL market (£350k+ properties) just keep away from the cheap stuff if you want to sleep at night! :thumbsup:
 
Kryton said:
mr wilks said:
There are properties ooop north going for £45/50k that would produce £5k income
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Is that what the sales brochure says :lol: IMO total rubbish, you wouldn't get £2.5k and that's when you can actually get the rent off the tenant, before they start to trash the (already) derelict house!

The only thing you'll get when you purchase a cheap house (under £100k) is a lot of hassle from the tenant, we've a big portfolio in the BTL market (£350k+ properties) just keep away from the cheap stuff if you want to sleep at night! :thumbsup:
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Its about doing your homework as i said 8) not everyone has the cash to invest in the higher end of the market Doesn,t mean to say you should avoid the "bread & butter " properties ,, rent no problem if in nice order for £90/£100 a week
http://www.rightmove.co.uk/property-for-sale/property-40379668.html

& that,s just one of many :thumbsup:

Out of interest ? what kind of yield are you seeing on the £350k properties ?
 
Coming from NL, I have never understood the UK housing market (boom / bust / terrible pricing for what you get), so never dared to go into that as an investment as I always assumed that one day it would 'see sense" and become more in line with the rest of Europe which would most likely when I would want to retire and would have lost most of the investments :)

At the moment, I am leaving the majority of the money in my company which would then enable me to draw the funds eventually as dividend and therefore could get 70k max out a year without having to pay more tax on it.

Better or worse? No idea but all the advisors want a massive slice of your investment to advice on it - and so far, has not been great by the looks of it.
 
pvr said:
Coming from NL, I have never understood the UK housing market (boom / bust / terrible pricing for what you get), so never dared to go into that as an investment as I always assumed that one day it would 'see sense" and become more in line with the rest of Europe which would most likely when I would want to retire and would have lost most of the investments :)

At the moment, I am leaving the majority of the money in my company which would then enable me to draw the funds eventually as dividend and therefore could get 70k max out a year without having to pay more tax on it.

Better or worse? No idea but all the advisors want a massive slice of your investment to advice on it - and so far, has not been great by the looks of it.
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Many so called advisors are merely quoting stats & figures .
Its about doing what feels right & comfortable so what suits some doesn,t work for others . If you can put £1k a month into a pension you are clearly doing something very right so fair play to you , That kind of £££ usually comes from a great idea or hard work :thumbsup:
 
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