Need advice as I don't know what to do for the best..

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shaunhouse
shaunhouse Posts: 105 Forumite
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30 years old. I have no mortgage on my house which is worth 220k.

I have 2 limited companies. 1 has 85k in the bank. The other is fairly new and pays a wage and small dividend currently.

I have a private pension which I pay 100 pounds per month in.

1 buy to let. 50% paid off worth 100k

2 cars both paid off.

12k in isa and 75k floating in decent easy access accounts paying 3% or abouts.

I've not purchased more buy to let's as the new claiming interest back and ware and tear.

I'm interested in commercial property but commercial rates are high. I could sell my house and go for a more expensive house but next step up in the area is 500k+

My goal is to invest for the future. I am married with a 2 year old daughter.

Any advice much appreciated :money:
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  • jimjames
    jimjames Posts: 17,619 Forumite
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    If you have private companies, why are you paying so little into your pension? Surely company payments in would be most tax efficient?

    I'd really be asking your accountant the best strategy as they can work on your circumstances and income, forum posts will never be a substitute for that knowledge
    Remember the saying: if it looks too good to be true it almost certainly is.
  • shaunhouse
    shaunhouse Posts: 105 Forumite
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    I have my accountants take on things, along with a few other peoples. I like to get lots of opinions before choosing the right path for me.
  • jimjames
    jimjames Posts: 17,619 Forumite
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    shaunhouse wrote: »
    I have my accountants take on things, along with a few other peoples. I like to get lots of opinions before choosing the right path for me.

    Fair enough. I think you should seriously review pension though, £100 is nothing to be paying in when you have so much available, £1200 per year in will give a minuscule pension at 55.

    From that list you also have no investments, only cash savings and small pension. There is a £20k pa S&S ISA allowance you could be using if you are wanting to invest for the future but don't want it tied up for as long as a pension.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • dunstonh
    dunstonh Posts: 116,371 Forumite
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    limited company directors tend to go heavy into pensions due to tax efficiency. Paying personal contributions into the pension is wasteful on tax.

    £100pm is also a pittance. Its minimum premium for many providers. Not the sort of amount you associate with a company director.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • stoozie1
    stoozie1 Posts: 656 Forumite
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    Will you need to move to a larger house at some stage anyway, or is your house adequate size for all foreseeable eventualities?
    Save 12 k in 2018 challenge member #79
    Target 2018: 24k Jan 2018- £560 April £2670
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    £100 a month is pitiful for someone who is a company director and has near on £200k in cash and owns several houses. It's like burning money turning down free government money you are eligible for.
  • atush
    atush Posts: 18,726 Forumite
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    This.
    I have a private pension which I pay 100 pounds per month in.

    Your company needs to be putting in 40K PA for you. Or as much as you feel the company can spare while keeping cash flow going.
  • shaunhouse
    shaunhouse Posts: 105 Forumite
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    We could just extend the house if needs be so no real need to move.

    I'm getting a feel for the theme. Yes I'll up the pension.

    What about commercial property? Thoughts?
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    "commercial property" could be a corner shop or Trump Towers !

    Why commercial property in particular? There are hundreds of areas you could invest in.
    Oil. Technology. Retail. FMCG. Utilities. House builders, healthcare etc etc etc......

    Why that. And even then, depending what you want there are funds you can invest in that will spread the load across multiple properties, rather than you putting all your eggs in the one property, which also would also be very hands on and a lot of hassle and risk. You can even specialise in different types. Retail. Malls. Factories. Offices. Health. etc.
  • shaunhouse
    shaunhouse Posts: 105 Forumite
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    I have buy to let's. Commercial property I could use my existing contacts to do them up and maintain them. It seems quite a few investors I speak to are moving across to commercial and they are doing well from it.

    I have no idea about the other areas you mention.
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