AVB Posted September 22, 2012 Report Share Posted September 22, 2012 I think people are missing the tax benefits though. With a pension contributions are tax free (up to a limit). Lump sum is tax free (it was and I think still is). Any pension purchased with a annuity would be taxable BUT you have had tax relief on the contribution (and also on the lump sum). Another alternative is to lump it all into ISAs. No tax relief on contributions but no tax on generated income or any capital gain. WIth buy to let the money you invest has to come from taxable income. The rental income you get will also be taxable. Any proceeds from the sale would be liable to CGT. So I am not saying that it is a bad thing but you are paying tax on the contribution as well as the income so your money has to work harder. Vipa - What's your view? Quote Link to comment Share on other sites More sharing options...
beeredup Posted September 22, 2012 Report Share Posted September 22, 2012 Intend to keep drawing mine till I snuff it then I dont know I ll do can i have first dibs on it when you snuff it?? Quote Link to comment Share on other sites More sharing options...
LondonLuke Posted September 22, 2012 Report Share Posted September 22, 2012 Only an issue if you owe money on it, if you buy outright then you have an asset that can go down but it will still be there. We've one paid off so rental money just goes in a pot when that's full enough we will buy another. then balance our retirement with whether we keep them or sell and live off the equity. Though this means you don't have the worry of the mortgage this isn't the way that any serious investor would run a BTL property. This way means you are paying tax on the whole income and cannot offset mortgage payments against rental income. As a rule investors ensure the equity will all be in their own property and little in their investments Quote Link to comment Share on other sites More sharing options...
Mungler Posted September 22, 2012 Report Share Posted September 22, 2012 AVB is on the money - Cash ISA works best at the mo. I'm in the middle of buying a small commercial unit on an industrial estate, or rather my SIPS is going to buy the commercial unit - I need to build an extra floor which will be leased to my firm and the downstairs will be let out to a third party. Double-bubble-tax-efficiency-tastic. Word to the wise - a nice freehold building with ground floor lock up shop or commercial premises and with upstairs flats for domestic rental. Tell you what, I need a decent roller shutter system - where's Phil Moss these days when you need him? Quote Link to comment Share on other sites More sharing options...
Catweazle Posted September 22, 2012 Author Report Share Posted September 22, 2012 AVB is on the money - Cash ISA works best at the mo. I'm in the middle of buying a small commercial unit on an industrial estate, or rather my SIPS is going to buy the commercial unit - I need to build an extra floor which will be leased to my firm and the downstairs will be let out to a third party. Double-bubble-tax-efficiency-tastic. Word to the wise - a nice freehold building with ground floor lock up shop or commercial premises and with upstairs flats for domestic rental. Tell you what, I need a decent roller shutter system - where's Phil Moss these days when you need him? There seem to be a lot of empty shops and commercial properties around at the moment, although that could change, either way. Of course if your pension scheme can rent the premises to your business..... Quote Link to comment Share on other sites More sharing options...
logstove Posted September 22, 2012 Report Share Posted September 22, 2012 I have a 40 acre broadleaf woodland and planted the gaps with an extra 36.000 trees 15 years ago I will sell these for firewood and become the worlds first log millionaire...... now where's my axe.................. Quote Link to comment Share on other sites More sharing options...
Catweazle Posted September 22, 2012 Author Report Share Posted September 22, 2012 I have a 40 acre broadleaf woodland and planted the gaps with an extra 36.000 trees 15 years ago I will sell these for firewood and become the worlds first log millionaire...... now where's my axe.................. What species did you plant ? Ash ? Quote Link to comment Share on other sites More sharing options...
logstove Posted September 22, 2012 Report Share Posted September 22, 2012 What species did you plant ? Ash ? ash oak cherry birch hazel - the cherrys are winning some are 30ft tall and 18" in the butt............logs delux! Quote Link to comment Share on other sites More sharing options...
nabbers Posted September 22, 2012 Report Share Posted September 22, 2012 ash oak cherry birch hazel - the cherrys are winning some are 30ft tall and 18" in the butt............logs delux! until the council put tree protection orders on em Quote Link to comment Share on other sites More sharing options...
logstove Posted September 22, 2012 Report Share Posted September 22, 2012 until the council put tree protection orders on em I have a fleet of beavers on stand by...... Quote Link to comment Share on other sites More sharing options...
rocksaplenty Posted September 22, 2012 Report Share Posted September 22, 2012 AVB is on the money - Cash ISA works best at the mo. I'm in the middle of buying a small commercial unit on an industrial estate, or rather my SIPS is going to buy the commercial unit - I need to build an extra floor which will be leased to my firm and the downstairs will be let out to a third party. Double-bubble-tax-efficiency-tastic. Word to the wise - a nice freehold building with ground floor lock up shop or commercial premises and with upstairs flats for domestic rental. Tell you what, I need a decent roller shutter system - where's Phil Moss these days when you need him? How much is the annual SIP management fee for including a commercial property? I've looked into Hargrieves L but they don't deal with commercial property. Quote Link to comment Share on other sites More sharing options...
subsonicnat Posted September 22, 2012 Report Share Posted September 22, 2012 What the youger Generation have to WATCH is the thieving gaffers putting a few vey tiny words at the end of said contracts:: It Reads: IF The company Falls into Hard times we can use your Pension,!!!!!!!!!!.. It Happened at our factory, and it happened at a Factory in Coventry: They took ALL their Pensions, So if you Do go into private pension schemes make sure the very small Print does not include above.. the goverment ought NOT to allow it as they will in the distant future NOT be giving you a State Pension at all.. A WARNING TO ALL: Quote Link to comment Share on other sites More sharing options...
compo90 Posted September 22, 2012 Report Share Posted September 22, 2012 i have been considering pensions lately. i am a cop so pay over 400 pound a month into the pension and that is due to go up and be worth less and make me work longer for it. If i worked it out right it will be woth half what i was promised with no lump sum. The wife wants to go down the buy to let avenue (her dad is a builder so property has been her family's investment plans) it is something we are looking at I will be making some enquiries this week as i dont think i will be left enough to live on with the current projections as the government have changed the rules Quote Link to comment Share on other sites More sharing options...
four-wheel-drive Posted September 22, 2012 Report Share Posted September 22, 2012 I am slowly filling my mattress with silver dollars its not very comfy but safer than keeping it in a bank and now that we can shoot burglars I think that I am on to a winner. Quote Link to comment Share on other sites More sharing options...
MM Posted September 22, 2012 Report Share Posted September 22, 2012 3 pensions. cash ISA's, no real mortgage left. big lump sum @ 50, and then off to the sun. Quote Link to comment Share on other sites More sharing options...
storme37 Posted September 22, 2012 Report Share Posted September 22, 2012 I am slowly filling my mattress with silver dollars its not very comfy but safer than keeping it in a bank and now that we can shoot burglars I think that I am on to a winner. Quote Link to comment Share on other sites More sharing options...
Rupert Posted September 22, 2012 Report Share Posted September 22, 2012 I will own my 5bed in 9 years (44 now) and we have 4 BTL and buy one a year on avg,Wife has a final salary scheme with her employer as operations manager. Im self employed so no outside scheme and a deep mistrust of others to manage my money So i max out on my isa since they began have some with profits plans during the shortterm. I hope she doesnt leave me! Quote Link to comment Share on other sites More sharing options...
rocksaplenty Posted September 22, 2012 Report Share Posted September 22, 2012 My neighbour is in her 80’s, still shears her flock of sheep with a pair of scissors and doesn’t have a brass farthing to her name, because of which she is focused healthy, angry and alive. I think that there is a danger of having too much and losing the hunger that gets you up in the morning, I’ve seen too many pasty faced golf players who retire in comfort on a final salary pension but don’t have any focus or reason for living other than selecting their next pair of comfort fit jeans from M &S. Quote Link to comment Share on other sites More sharing options...
Bluebarrels Posted September 22, 2012 Report Share Posted September 22, 2012 (edited) 1x pension in the bag(which i get now) which nearly doubles at 55,another lump sum at 55 and a second pension at 60 15 years to go should be enough to get ****** in the boozer everyday when i can't get out shooting BB Edited September 22, 2012 by Bluebarrels Quote Link to comment Share on other sites More sharing options...
ack-ack Posted September 22, 2012 Report Share Posted September 22, 2012 I'm going to become a sperm donor. Next week I'm weighing in a hamper of socks and a couple of Kays catalogues. Quote Link to comment Share on other sites More sharing options...
Kes Posted September 22, 2012 Report Share Posted September 22, 2012 I have plans to start a website on the meaning of life and the existence of god - I intend to employ HenryD and charge 20p a word for every response - better than winning the lottery. Sorry Henry but I maxed out on the reloading and god thread. Quote Link to comment Share on other sites More sharing options...
ack-ack Posted September 22, 2012 Report Share Posted September 22, 2012 I have plans to start a website on the meaning of life and the existence of god - I intend to employ HenryD and charge 20p a word for every response - better than winning the lottery. Sorry Henry but I maxed out on the reloading and god thread. I don't think that Henry D would not endorse your business model my dear Kes. You'd be better off running a sweepstake on predicted closure of cat threads. Quote Link to comment Share on other sites More sharing options...
DNS Posted September 22, 2012 Report Share Posted September 22, 2012 3 pensions. cash ISA's, no real mortgage left. big lump sum @ 50, and then off to the sun. Might have some bad news for you there chief. If the lump sums are from pensions I think you'll find that you now have to wait until you're 55. I'd be happy (delighted even) to be wrong. Quote Link to comment Share on other sites More sharing options...
Kes Posted September 22, 2012 Report Share Posted September 22, 2012 I don't think that Henry D would not endorse your business model my dear Kes. You'd be better off running a sweepstake on predicted closure of cat threads. I bow to your superior wisdom and wit young man, maybe the cat model is better - wider audience etc must look at this in detail !! Cheers Quote Link to comment Share on other sites More sharing options...
stokie Posted September 22, 2012 Report Share Posted September 22, 2012 That's an easy question . I've walked away from society in some respects . We now live on a narrowboat . Very small bills ,no council tax low running costs . Means we can chuck loads of money in the bank and still live the good life . I'm 42 now and plan to retire at 50 . Then it lasts as long as it lasts . Quote Link to comment Share on other sites More sharing options...
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