Renovations and Repayments.

hiddenshadow · 25 March 2016 at 9:44AM

AlexLK wrote: »

Mrs K contributes to a pension for the tax benefits (she currently chooses to pay in all her earnings that would be taxed at 40%). I don't have a pension and do not plan to have one in the traditional sense as I will always have an income from property.

That's what we do as well re: our pensions.

Anything beyond the amount on salary sacrifice may as well go to a LISA, though, as the government top-up is the same and it's tax-free coming out. (And can be used pre-55 in an emergency, though with penalties.)

(FWIW, that's the general advice in the US as well - contribute to pension to get any free money on offer from employer match, then max out the US equivalent of a LISA, then return back to pension to max that out if feasible. US taxes are a lot more complicated, of course, and taxes in retirement are lower than the UK generally.)

A_Frayed_Knot · 25 March 2016 at 11:23AM

hiddenshadow wrote: »

Not that I disagree, but it's only £667/mo (£8,000/year), so a bit less shocking.

Ooops

:rotfl: Nothing could shock me on here right enough :eek: I normally just think "WoW" :eek:

when I see some figures on here. Compared to me everyone is mega rich

But your right - a big difference between monthly/yearly

:rotfl:Thank you for clearing that one up :A

maman · 25 March 2016 at 11:26AM

AlexLK wrote: »

A lack of qualifications and experience in the field as well as a fear of not being able to cope.

My parents have recently told me I need to start making some more long term investments.

A_Frayed_Knot wrote: »

Well the person that asked you if you would be interested, must think you are up to the job and has faith in you, otherwise would not have asked you in the first place

Currently it would be extremely difficult to become the Headteacher of a school without a teaching qualification and only some experience of volunteering. However,the government isn't that concerned about having unqualified teachers in schools and may find the business acumen developed from BTL and other business interests sufficient 'qualifications' for running a school in the near future.;)

Whether you would cope Alex, given your health issues and view on the world is another story completely.

I've done a first aid course and I watch Holby City so with the shortage of doctors I might apply to be a consultant.:rotfl:

When you say that you don't need a pension because you'll have your income from property: is this your parents' property or the investments they're encouraging you to make?

AlexLK · 25 March 2016 at 3:32PM

A_Frayed_Knot wrote: »

Well the person that asked you if you would be interested, must think you are up to the job and has faith in you, otherwise would not have asked you in the first place

Comments were not insensitive :cool: just thinking if you have £8,000 spare every month, to do this :eek:, then I would expect to see some o/p's being mentioned here

:rotfl: Not the case as he hardly knows me, I just happen to be able to talk about policy quite well.

I work in the school on a half voluntary / half paid basis and am not a qualified teacher.

Also, we don't earn £8,000 per month.

hiddenshadow wrote: »

Not that I disagree, but it's only £667/mo (£8,000/year), so a bit less shocking.

Do you have to pay it in monthly increments? I'd rather just pay a lump sum in per year.

hiddenshadow wrote: »

That's what we do as well re: our pensions. Anything beyond the amount on salary sacrifice may as well go to a LISA, though, as the government top-up is the same and it's tax-free coming out. (And can be used pre-55 in an emergency, though with penalties.)

(FWIW, that's the general advice in the US as well - contribute to pension to get any free money on offer from employer match, then max out the US equivalent of a LISA, then return back to pension to max that out if feasible. US taxes are a lot more complicated, of course, and taxes in retirement are lower than the UK generally.)

Rather impressed we seem to have got something right for once.

To be honest, one of the main reasons I'm wanting to pay into the LISA is to get something back from the government ... we pay enough in taxes.

AlexLK · 25 March 2016 at 3:57PM

A_Frayed_Knot wrote: »

Ooops

:rotfl: Nothing could shock me on here right enough :eek: I normally just think "WoW" :eek: when I see some figures on here. Compared to me everyone is mega rich

But your right - a big difference between monthly/yearly :rotfl:Thank you for clearing that one up :A

I'm not exactly "rich", Frayed Knot.

From reading your diary, I think you're using your money much more wisely than my wife and I.

maman wrote: »

Currently it would be extremely difficult to become the Headteacher of a school without a teaching qualification and only some experience of volunteering. However,the government isn't that concerned about having unqualified teachers in schools and may find the business acumen developed from BTL and other business interests sufficient 'qualifications' for running a school in the near future.;)

Whether you would cope Alex, given your health issues and view on the world is another story completely.

I've done a first aid course and I watch Holby City so with the shortage of doctors I might apply to be a consultant.:rotfl:

When you say that you don't need a pension because you'll have your income from property: is this your parents' property or the investments they're encouraging you to make?

Maman, I've no desire to apply for the job let alone expect to be given it. My comments about it being something I can do nothing about were directed at certain policies I disagree with, which I find frustrating as I do not like things to be beyond my control.

I'm quite aware I do not have the relevant qualifications or experience and am too old to be starting again if I were to hope to gain a position of influence. To be honest, I thought I made this quite clear in my previous post. Therefore, I hardly think trying to ridicule me is entirely appropriate.

Re. not needing a pension, it will be both. As I have stated in the past I'd like to find myself with 20 rental properties by the time I start passing property onto my son. Can't really see why it matters whether it's inherited or otherwise, to be honest.

AlexLK · 25 March 2016 at 4:02PM

Challenge 1 update
Actually managed to do something about this today.

Got a set of wheels prepped and photographed. I plan to put them up for sale later on today.

hiddenshadow · 25 March 2016 at 4:08PM

AlexLK wrote: »

Do you have to pay it in monthly increments? I'd rather just pay a lump sum in per year.

No, as it's an ISA you can pay in whenever you want (provided it's before the year-rollover).

I'm guessing you'd get the top-up at the year rollover point, but who knows how that will work (probably not even HMRC). :rotfl:

To be honest, one of the main reasons I'm wanting to pay into the LISA is to get something back from the government ... we pay enough in taxes.

Try living in the US.

I think my tax rate was about 28%, and I had to pay for medical insurance on top of that.

AlexLK · 25 March 2016 at 4:39PM

Thanks, hiddenshadow.

You've surprised me re. the US, I thought they paid very little in tax.

hiddenshadow · 26 March 2016 at 12:50AM

AlexLK wrote: »

Thanks, hiddenshadow.

You've surprised me re. the US, I thought they paid very little in tax.

You can deduct all sorts of things to lower your tax burden (charitable donations, mortgage interest, student loan interest, etc), but it generally doesn't mean you pay little/nothing in tax unless 1) you/your accountant is very creative with deductions 2) you have very high expenses on the deductible things (which is a false economy - so many people happy to keep $1,000/mo mortgage payments to save $16.66 in taxes through deductions, for example). At any rate...it's complicated.

(Having said all that, higher earners do pay quite little in tax relative to the UK/Europe, I believe. The highest tax bracket currently is 39.6% for $400k+ in earnings, and if you're earning that much I'm sure your accountant knows all the hoops/loopholes to jump through to minimise your tax as much as possible.)

A_Frayed_Knot · 26 March 2016 at 1:40AM

AlexLK wrote: »

I'm not exactly "rich", Frayed Knot.

From reading your diary, I think you're using your money much more wisely than my wife and I.

Read your first post wrongly

- thought you meant £8000 "spare" in a month :eek:, not a year, however if I found I had £8000 spare at either the beginning or end of the year, then I would expect to be posting I had made some kind of o/p.

Anybody that has £8000 spare, is rich

in my books :rotfl:

AlexLK wrote: »

Challenge 1 update
Actually managed to do something about this today. Got a set of wheels prepped and photographed. I plan to put them up for sale later on today.

:T This is great news, hope you managed to get them up for sale. 6 days left for Challenge 1

and your more than half way there :j

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