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Posted: Sun Sep 30, 2012 3:48 pm
by bobbi o
Found out this week my private pension will pay me the grand total of 1600 quid a year on retirement, based on contributions i've made during my working life.
Looks like i will just have to keep working until i keel over.
Anyone know what the total you need in your pension pot to have a decent income in retirement?
Posted: Sun Sep 30, 2012 3:52 pm
by lutonlagerlout
a mill for starters
TBH you are better off with property
you have the capital there if you need it plus you are pulling in rent every week
unless you are part of a big organisation that will match or even top up your pension it aint gonna be worth a carrot
buy a 2 bed house and rent it out
cheers LLL
Posted: Sun Sep 30, 2012 6:05 pm
by local patios and driveway
We just bought a little flat, will be paid off by tenants before we retire, hope to get a few more in the next 5 years if we can
Posted: Sun Sep 30, 2012 6:19 pm
by parishpaver
Talk to a proper fee charging independent financial advisor, not a glorified salesperson pushing products that pay the most commission.
Investment opportunities are there and it all depends on your attitude to risk.
Gotta disagree with lutons "buy a house and rent it out" strategy.
Buy a huge illiquid asset that is due for a fall, leaving you with capital loss and (hopefully) collect rent every week less management fees, maintenance, insurance and void periods. Not for the faint hearted. Money in the best savings accounts would probably yield as much.
Posted: Sun Sep 30, 2012 6:45 pm
by lutonlagerlout
rentals as we call them in luton have worked pretty good for me and my mates
long term property is a winner, and 2 bed houses are where its at
£700 a month rent doenst seem much but once the tenant has paid it off its all in your pocket,minus tax of course
plus you can sell the house if you need to
its not short term
i still own the first house i bought,only 2 years left on the mortgage,
once that is done i can either sell the house and pay off my current mortgage
or carry on collecting the £700 p/m rent
LLL
Posted: Sun Sep 30, 2012 6:52 pm
by local patios and driveway
Pp a few of my friends told me the same thing when i was 18 and looking to buy, needless to say im mortgage free as of last year and many of them either still live at home with mum and dad or pay rent.
Do you know the best time to invest in property?
As soon as you possible can.
Posted: Sun Sep 30, 2012 7:06 pm
by parishpaver
Just because something was true last week, last year or last decade does not mean that it is true tomorrow.
I am not opposed to property ownership but doubt it's
long term effectiveness as an investment vehicle especially as the OP's question relates to his pension.
Posted: Sun Sep 30, 2012 7:17 pm
by Pablo
My plan so far involves not putting all my eggs in the one basket so I have a pension which will pay me £10000 a year ish at 65 plus another pension from a previous life which will pay about £1700 and also my state pension which will pay about a tenner. My wife has a good pension and any married couple should be putting all their money together into the same pot so we'll be fine. Sold all my houses to pay for the one I'm in now and once we've done the extension and balanced the finances I'll start a few fixer uppers for rental probably from auction or a decent one for the right money and take it from there. If you can afford it buy now but don't take risks that could mean you'll lose your own place etc and aim for private tenants social housing is a flipping nightmare if you end up with idiots who'll kill your profits with damages.
Posted: Sun Sep 30, 2012 8:03 pm
by ilovesettsonmondays
finding a good tenant is the hard part.for every ten tenants there will be three good ones.
Posted: Sun Sep 30, 2012 8:50 pm
by lutonlagerlout
parish i have a few bob in the bank
i get 1.5% interest
inflation is 2.5%
so thats a loser
I know what you mean about past performance
but my criteria for houses is what would it cost to build now
that 700 quid a month is not a great income but it might be enough to keep you out of the poorhouse
also if you own property ,when you snuff it the kids or missus gets it
all those pensions just keep the money if you die
LLL
Posted: Sun Sep 30, 2012 9:02 pm
by Mikey_C
any pension (savings) should be based on a balance portfolio so you are not risking all your money one thing be it, property, one pension pot/company, cash under the mattress, shares, gilts/bonds.
Going with a higher risk when you are, lowering the risk as you get older.
Property can be a good long term investment but has to be the right property and the right price with the right tenants and is not hassle free.
Posted: Sun Sep 30, 2012 9:27 pm
by Dave_L
lutonlagerlout wrote:also if you own property ,when you snuff it the kids or missus gets it
And not to mention the taxman gets his share upon death (IHT)
Posted: Mon Oct 01, 2012 7:12 am
by lutonlagerlout
there are ways around all that dave
you just need a good accountant
I have tried property,shares,deposit accounts,premium bonds,ISAs,investing in start ups
and from my position property has been the best
but we are 4 years into this recession now
its getting boring
LLL
Posted: Tue Oct 02, 2012 9:22 pm
by Dave_L
Indeed, it is possible to get around some IHT but it takes years of forward planning.
Posted: Tue Oct 02, 2012 10:16 pm
by lutonlagerlout
7 years dave
the queen mum did it when she was 92 and conveniently lived just past the 7 year dead line
the worst thing if you have a few quid is not to work out where its going sooner rather than later
I am lucky in that I have never been left 1 penny,and TBH wouldnt want money like that
but when i pop my clogs little miss lout will be minted
lets hope that not till she's 65 eh?
LLL :laugh: