Early-retirement wannabe

Kit_Katt

Awesome Marine Life. Its been such an encouraging journey and another year at a decent rate will build the runway a little bit further.

Good luck...

Pennysmakepounds

Kit_Katt wrote: »

Awesome Marine Life. Its been such an encouraging journey and another year at a decent rate will build the runway a little bit further.

Good luck...

This is great thread.


You are all inspiring me to get to that stage, when I can finally say STOP.


I’m a few years from that yet though (mid 40’s), but to be honest my retirement plan is more driven by finances then age as I have NO Pension and therefore no restriction of age.


My plan has been/is to retire (or at least have the option to retire – which is MORE important to me then actually retiring) - once I can achieve a certain level of income WITHOUT having to work a 9-5.


Speaking honestly – I don’t actually see me retiring fully EVER,
I enjoy working, it’s what I’ve done MOST of my life.


However, I really want to be in a position to have an option to retire at around 50 and I’ve been sacrificing to make this possible.

Financially, I’m on target (I think….eeek). I have been frantically saving and investing to make my financial situation match my aspirations. I’ve been lucky that the last few years


I’ve been running my own business and its doing pretty well, so has given me the opportunity to expand my investments.


Here’s to the next 8-10 years till I can join your club 


That’s assuming the kids don’t ruin my plans, buy doing something stupid between now and thee

MallyGirl

If you have your own business why don't you have a pension- there are tax benefits to be had

atush

I agree.

Are yo a limited company? What vechile are you using to save? S&S isas? Pensions can be accessed at 55 so i'd be using one as well.

Pennysmakepounds

atush wrote: »

I agree.

Are yo a limited company? What vechile are you using to save? S&S isas? Pensions can be accessed at 55 so i'd be using one as well.

My retirement plan is rental income 70% and 30% other.


Pensions, are NOT for me. I had one years ago but cashed it in.

The way I see it, I'd rather have control over my money and leave something for the kids. Rather then invest in a pension.


I realise its not the most TAX efficient route but each to their own.


By the point I retire, I plan to be worth at least a million in property and cash.


Well that's the plan, but then again I could 'kick the bucket' tomorrow.

Anonymous101

Pennysmakepounds wrote: »

My retirement plan is rental income 70% and 30% other.


Pensions, are NOT for me. I had one years ago but cashed it in.

The way I see it, I'd rather have control over my money and leave something for the kids. Rather then invest in a pension.


I realise its not the most TAX efficient route but each to their own.


By the point I retire, I plan to be worth at least a million in property and cash.


Well that's the plan, but then again I could 'kick the bucket' tomorrow.

I'm interested to hear why you think that investing in a pension doesn't give you control over your money?
Particularly why you think your kids wouldn't get any of it should the worst happen.

MallyGirl

Anonymous101 wrote: »

I'm interested to hear why you think that investing in a pension doesn't give you control over your money?
Particularly why you think your kids wouldn't get any of it should the worst happen.

Agreed. I have a SIPP which gives me a lot of control over how the money is invested. Admittedly i can't get it out till 55 but I have ISA wrapped investments to cover the time before that if I needed it. I have been very grateful for the 40% tax relief and 2% NI boost that the contributions have received on their way in to the pension.

My daughter will get the remaining contents of my pensions when I shuffle off.

I think you might have shot yourself in the foot for want of a bit of research. Your objections to pensions seem related to final salary/ defined benefit pensions but they are no longer the norm.

ams25

Pennysmakepounds wrote: »

My retirement plan is rental income 70% and 30% other.


Pensions, are NOT for me. I had one years ago but cashed it in.

The way I see it, I'd rather have control over my money and leave something for the kids. Rather then invest in a pension.


I realise its not the most TAX efficient route but each to their own.


By the point I retire, I plan to be worth at least a million in property and cash.


Well that's the plan, but then again I could 'kick the bucket' tomorrow.

I have funds in a SIPP (aka a pension), funds in ISAs and funds in taxable accounts. I have the same control over all of them, have (some of) the same investments in all of them and treat them pretty much all as one portfolio. Apart from the access at 55 (58?) rule (for retirement should not be an issue) what lack of control are you concerned about?

Are you sure you understand the options available fully - otherwise you may be missing out on significant tax benefits based on old rules or experiences...but not today's reality.

Pennysmakepounds

ams25 wrote: »

I have funds in a SIPP (aka a pension), funds in ISAs and funds in taxable accounts. I have the same control over all of them, have (some of) the same investments in all of them and treat them pretty much all as one portfolio. Apart from the access at 55 (58?) rule (for retirement should not be an issue) what lack of control are you concerned about?

Are you sure you understand the options available fully - otherwise you may be missing out on significant tax benefits based on old rules or experiences...but not today's reality.

I'm not disagreeing that there are some good options out there.
But i've decided to go down the property route for the bulk of my retirement planning.

Yes - that does mean that i have to pay 40% TAX from the business profits, and the situation is made even worse now with the 7% tax on dividends.



However, even with all that I still think its better to invest in property and make the income off rental.



It may not be everyone’s cup of tea but it works for me.

nicknameless

Pennysmakepounds wrote: »

I'm not disagreeing that there are some good options out there.
But i've decided to go down the property route for the bulk of my retirement planning.

Yes - that does mean that i have to pay 40% TAX from the business profits, and the situation is made even worse now with the 7% tax on dividends.



However, even with all that I still think its better to invest in property and make the income off rental.



It may not be everyone’s cup of tea but it works for me.

Or in other words "I'm not listening" :rotfl:


It could work better for you perhaps. Imagine having saved a lot of that tax?