pension information

bendix

Disclosure: Around 2% of my net worth is in gold.

DiggerUK

bendix wrote: »

Disclosure: Around 2% of my net worth is in gold.

Even an IFA would tell you to increase that ammount.
It's way too low.

If the price goes down, then yes that should be classed as a risk, as a problem, undesirable.
Long term it doesn't happen. Even the 80's spike was a short lived panic reaction to the geopolitics of the day. Nobody hoarded vast amounts of gold at the time, there was other steak to fry.
I didn't buy that day, you didn't buy that day just who did buy that day. Idiots and gold bugs, that's who.

It will never collapse out of existence as an asset class, or money, that's it's no risk credentials, it is the ultimate insurance. It will always be left standing.
Nothing else can make that claim.

Equities, commodities and gold are moving at the moment. We can only watch and see how it pans out to determine the strength or weakness of our arguments.

Your 2% is way too low, should have gone to goldsavers

Aegis

DiggerUK wrote: »

Even an IFA would tell you to increase that ammount.
It's way too low.

No. No they wouldn't.

And no, no it isn't.

If the price goes down, then yes that should be classed as a risk, as a problem, undesirable.
Long term it doesn't happen. Even the 80's spike was a short lived panic reaction to the geopolitics of the day. Nobody hoarded vast amounts of gold at the time, there was other steak to fry.
I didn't buy that day, you didn't buy that day just who did buy that day. Idiots and gold bugs, that's who.

And now that the price is about 4 times the rest value for most of the last 2-3 decades you're still shouting about how great an opportunity it is?

Equities, commodities and gold are moving at the moment. We can only watch and see how it pans out to determine the strength or weakness of our arguments.

The fact that gold is moving shows that it is NOT a risk-free investment.

jamesd

Aegis wrote: »

And now that the price is about 4 times the rest value for most of the last 2-3 decades you're still shouting about how great an opportunity it is?

There are always people encouraging others to buy into a bubble.

sandsy

If nothing else, taking out a pension is one way you can get something back from the government for free! For every £80 you put into your pension, the tax man will make it up to £100. Even if the markets stand still over 30 years (highly unlikely!), that's a return of 25% on your investment!

jamesd

Well, you get 25% of that 25% in the tax free lump sum. The rest will be taxable if it's above your personal allowance so you'll end up finding the government taking back the initial tax break. Capital gains tax and tax on retained in the pension pot income benefits do remain, though.

Salary sacrifice and higher rate tax are the areas where the tax treatment is closer to pure gain.

DD4

jamesd wrote: »

Well, you get 25% of that 25% in the tax free lump sum. The rest will be taxable if it's above your personal allowance so you'll end up finding the government taking back the initial tax break. Capital gains tax and tax on retained in the pension pot income benefits do remain, though.

I keep seeing this rolled out and it really winds me up. Can you please explain how large a pension pot you would need in order to purchase an annuity that is RPI linked, with a 5 year guarantee and a 50% spouse pension that is ABOVE the age-related £10k tax free allowance (i.e. taxable), where the 25% tax free sum has been taken? Given that most people will receive a state pension of £6k (average state pension currently).

Could you then explain to me how many ordinary people will actually be able to save that sort of a pot from their own money???

bendix

DiggerUK wrote: »

Even an IFA would tell you to increase that ammount.
It's way too low.

You have absolutely no way of knowing my personal circumstances, my finances, my financial goals nor my attitude to risk. As such, your recommendations are completely idiotic.

And, with all due respect, as you state in one sentence that personal pensions are no good but that SIPPs are a good way of saving for your retirement, your knowledge of the financial world is suspect at best.

You also called personal pensions risky because they are a stockmarket gamble, completly unaware - it seems - that people can opt to put other asset classes into their pension, including cash.

Sorry pal, but you have zero credibility.

bendix

DiggerUK wrote: »

It will never collapse out of existence as an asset class, or money, that's it's no risk credentials, it is the ultimate insurance. It will always be left standing.
Nothing else can make that claim.

Yes, it will be left standing. Of course it will. It is a physical option.

But if the price has fallen then you have lost money, and the last time I checked gold wasn't issued with a guarantee that the price was going to be higher when you sold it to that you paid for it.

Ergo, it is completely bogus to say it has no risk credentials.

DD4

bendix wrote: »

You also called personal pensions risky because they are a stockmarket gamble, completly unaware - it seems - that people can opt to put other asset classes into their pension, including cash.

..and into government & corporate bonds, and into property funds and into commercial property (i.e. actually purchase a commercial property with your pension fund for letting out).

A lot of people's opinions are ruled by ignorance and fear. I'd advise anyone to do their own research and form their opinions based on fact and not hearsay.