[Doug Holloway]

Hi Guys

It has come up another thread that one of our successful fellow contributors has made no pension provision and intends working part time for a longer period.

While this is an option provided ones fitness allows, both mentally and physically it is surely better to make provisions.

I have paid into a personal pension for over 20 years although the amount I would currently get wouldn't' pay my bar bill.

Over the past 30 months I have invested in an ISA and with a fair wind am showing a 30% profit. I also have a small SIPP.

My plan is to max my ISA each year, reinvesting dividends and anymore I can add to my SIPP, hopefully allowing me to sell the business in ten years time(65) and retire without having to talk about CC .

Cheers

Doug

[Shaun_Ashmore]

I have various provisions the taxman is going to have a birthday with me when I retire but one fly in the ointment is that I have 2 properties that ill end up giving to the kids as they'll never be able to get onto the property ladder otherwise which takes away a decent part of my pension I do intend to go part time just to keep the grey matter working and keep myself fit.

Shaun

[*Hector*]

Shaun.... Rent the properties to the kids...... then if they have had enough of the houses and move out, you can then rent them to other people... all the time enjoying the income..

If the kids like the houses, leave them to them in your will, and let them worry about the tax that may bring... You will be out of it and therefore not have to pay it..

 

[John Kelly]

One thing to bare in mind. Forget about this utopia of retirement. If you are lucky you may have a long and healthy retirement. However old age and I don't mean old but even late 50s on can bring all kinds of health issues especially if you've had a hard working life. In view of this I would recommend work hard now and use the proceeds to do things, travel, hobbies etc while you are young enough to enjoy them.

http://www.forbes.com/sites/carolynmcclanahan/2012/12/05/the-fallacy-of-saving-for-traditional-retirement/

[Mike Halliday]

We are not able to see the future so the only indication we have of how we will survive old age is to look at our parents, if your dad & granddad died from prostrate cancer or had a heart attack at 50 then be worried.

My dad is 83 and could still work if he wanted, my grandad died at 89 after tripping over a curb, he was walking the 5 miles into town every day before that.

I think The best investment you can make is in your self and your company, you can put £40 a week into a pension or spend the same money on learning to restore stone & marble.... I believe the best investment is the training course. The problem is people don't see knowledge as an investment.

Last year I found out I need both my hip joints replaced and was due to have them done in December but there was complication so now have decided to live with the pain until the pain medication stops working. At that piont I took a big look at what I needed to do,

 I see my son as my main investment over the coming years he will do the courses , he now can do the work. as I go into retirement I will take a back seat and let him reap the rewards of what I have created, but I will still take in income from the company that will be my pension, I have worked out that at this time I could take a £300 a week income from the company and my son will still have the lions share, this is better than any pension I would get if I had been paying for years.

But.... In the end we play the cards we have, no piont thinking about pensions if you're 50. my plan is based on maximising my own circumstances if I was 25 years younger my plan would be different

[Paul Clapham]

..........and what if your Son decides after a few years he would like to do something else, or meets a girl who lives abroad and he moves etc etc etc etc .

I have a son who is returning home this summer after finishing  uni , there is no way on this earth I would be planning my retirement plans based around him , it would just not be fair on him.
 I want him to  ( and he does as well )  make his own mark on this world.

[sherco]

I have 5 houses i rent out..Hopefully that will sort me. Or the Government decides otherwise.

[Mike Halliday]

Paul I  get run over by a bus next week, yes things could change,

my son could want to take a different route and if that happens I will alter my plans but I can't predict the future and can only make my plans on what I know now. And at the moment my son wants to continue the business if he changes his mind then so be it, i will change my plans

[Doug Holloway]

Hi Guys

At 50  you could put160K plus based on todays figures into an ISA over 15 years, double it which should be easily achievable with reinvesting dividends and you have a tax free pot of 320K to help your retirement.

Cheers

Doug

[Doug Holloway]

Alternatively you could put it in a SIPP, the government will add almost 40K, although you will be restricted on how you spend the money with currently 75% having to be used as a pension, if you die before you buy an annuity it will go into your estates so wife and kids benefit.

[Neil Jones]

I'm always interested in this subject, I get quite pent up on my retirement provisions. Currently I have a rental property and i'm looking to get another, I pay into a private pension monthly and also into an ISA, I will also be looking at a SIPP this year.
At the the end of the day no one knows if they are right or wrong, pensions could pay pittance, property prices could stagnate, businesses could fail, etc etc. If there was one sure fire way to achieve a liveable pension then every single person on here would do it.
Just out of interest what are people saving every month? Or what % of turnover are they saving? How long have you been and will save this much for? Just to compare.

[Neil Jones]

Just to add, my dad retired at 55 last September from the fire service, he also served in the army. If I told you his pension and lump sum, your eyes would water. He now spends April-Septemeber doing part time gardening as work which he loves. I would be extremely happy with his lifestyle.

[Mike Halliday]

Hi Guys

At 50  you could put160K plus based on todays figures into an ISA over 15 years, double it which should be easily achievable with reinvesting dividends and you have a tax free pot of 320K to help your retirement.

Cheers

Doug

Doug just break that down for me where does the £160k come from? And how does it double in 15 yrs

[wynne jones]

I bet if there was a poll on here about who had a half decent pension it will only be 15-20%. Nowadays you are looking at a pot of £250k plus.

Also I bet there are some on here who are thinking who needs a pension when my business is worth way more than that.  

[Neil Jones]

Wynne most people don't even technically own a business because they don't keep records and customer details, all they have is simply a collection of cleaning equipment and chemicals. The amount of times i've seen an advertisement on ebay listed as a 'business' when all you simply get is a van and equipment, maybe a website, flyers and phone thrown in.

[Len Gribble]

It’s a bit ironic nether of us planed for it but fortunately both wife and I worked for companies with a none contributory pension system with the option of lump sum to minimise tax liability very happy day till the tax man get to the rest what we need is more tax loopholes as a business


Doug

30 months and showing a 30% profit on ISA can you give me the sums  

Neil

What’s the betting your dad said something to you years ago?  

[Doug Holloway]

You can put 11K plus into an ISA, so 15 x 11, is roughly 160.

If you invest in FTSE 350 probably going to get dividends of 3.5%. say you achieve a 6.5% capital growth that's 10% per annum which will give you much more than double.

It also allows you to invest in the big companies like banks, so when they rip people off you benefit, it's what the wealthy do!

[Doug Holloway]

Len

There are a lot of shares like the banks which are seeing big gains, Lloyds is up 125% in a year.

Obviously no one is going to back all winners but it's a good time to invest because the Economy will be much brighter in 5 years.

[wynne jones]

Wynne most people don't even technically own a business because they don't keep records and customer details, all they have is simply a collection of cleaning equipment and chemicals. The amount of times i've seen an advertisement on ebay listed as a 'business' when all you simply get is a van and equipment, maybe a website, flyers and phone thrown in.

You are spot on there Neil. Some on here though will have contracts, customers on pre pay, business owned premises, employees and some sort of system that someone could look at on paper and think its a turnkey business. And then of course there are Franchisers and Retailers.   

[Mike Halliday]

You can put 11K plus into an ISA, so 15 x 11, is roughly 160.

Thats what you do with it..... not like I  asked "where does it come from?"  I'm guessing this £210 a week ( every single week for the 15yrs) come directly out of the wages you pay yourself.

A great idea if you have a spare £210 a week to invest