Calling those with a "high" level of savings/investments! (£50,000+)

Zekko

While you are young and earning a good wage, don't forget to put aside some money for a pension as well. Your older self will thank you for it.

YoungBusinessman

It all adds up to me getting a passive income, well before any retirement age!

If all goes well and iv companies earning my money for me, i wont need a pension! Naive? Yes.

Possible? Hell yes!

coastline

YoungBusinessman wrote: »

It all adds up to me getting a passive income, well before any retirement age!

If all goes well and iv companies earning my money for me, i wont need a pension! Naive? Yes.

Possible? Hell yes!

If you're making decent money in the future chances are you'll be paying higher tax rates.
Then you'll be looking at ways of reducing your tax bill...this is where the pension comes in.
If present rules stay in place you can save 20-40% of tax on the investment into a pension plan...you can also take a 25% tax free lump sum at the end...
All things need to be considered...Good Luck.

YoungBusinessman

Coastline the downside to this i feel is the capital being tied up and not getting a decent return. Right now i believe earliest you can draw the lump sum is age 55. A long way to go for me when infact i doubt it will be tax free/age 55 by the time i get there! Id rather use the money and make more with it before age 55 than getting a smaller sum at that age, tax free or not.

grey_gym_sock

if you want to (have the option of) retiring well before 55, you obviously can't put all your investments to produce a retirement income into a pension. but you can put part of them there. a large part of your projected retirement is going to be after you're 55. you could plan to spend more than the income on your non-pension investments in early retirement, depleting the capital, because that could be perfectly sustainable allowing that you will have a further lump sum & income available from age 55.

though if you're in your 20s now, i wouldn't rely on the minimum age for drawing a pension still being 55 when you get there. it was recently increased from 50, so perhaps it will be increased again before you get there. however, this doesn't change the general idea of how you can use a pension - it just means you have to allow a greater margin for error.

i also wouldn't suggest making pension contributions while you have non-mortgage debts, unless there are matching employer contributions on offer.

black_taxi_2

0--45 health free
45--51 cervical stenosis (nerve damage)gout (arthritis-very pianful)

If it gets more serious I will hav to retire early

Don't take health for granted

MrsCautious

I need to echo what black taxi says.
In my early 40s, I now have way in excess of the figure you mention in savings and investments.
But it's because my husband died this year and he was the sensible one, making sure things were in place before he was taken from us far too young -- a tiny bit younger than me.
I hope you don't mind me adding to this thread with my simplistic/sentimental thoughts, but I can tell you with hand on heart I would give back every penny to have him back. I am a company director and pay myself a modest wage. And yes the company runs very well without me.
You are already a rich man if you have your health and love around you.
I hope you reach your financial goals and wish you all the luck in the world, you sound like you really have your head screwed on (if that's the right expression) but I wish you happiness more -- relaxed, money-stress-free happiness, don't be too hard on yourself if life gets in the way of your plans

roswell

Do not rule out pensions, I'm 31 low income com paired to most 19k but I have a pension pot with over 30k in it, I know colleges better wages bigger debts and no pension, this year I put 2k in but managed 6k growth across the year in my books in ahead of my measurement that measurement being the people I work with.

YoungBusinessman

MrsCautious wrote: »

I need to echo what black taxi says.
In my early 40s, I now have way in excess of the figure you mention in savings and investments.
But it's because my husband died this year and he was the sensible one, making sure things were in place before he was taken from us far too young -- a tiny bit younger than me.
I hope you don't mind me adding to this thread with my simplistic/sentimental thoughts, but I can tell you with hand on heart I would give back every penny to have him back. I am a company director and pay myself a modest wage. And yes the company runs very well without me.
You are already a rich man if you have your health and love around you.
I hope you reach your financial goals and wish you all the luck in the world, you sound like you really have your head screwed on (if that's the right expression) but I wish you happiness more -- relaxed, money-stress-free happiness, don't be too hard on yourself if life gets in the way of your plans

Thanks very much for that post. I am extremely sorry to hear about your husband, it was actually a death that inspires me to succeed and get out of the rat race. My granda was a grafter, worked a physical job all his life, hands like shovels. He had problems with high blood pressure due to this. He retired age 65 but battled on till 64 when one day he had a heart attack and that was him.

He was the only family member I'v ever been close to. It made me think I don't want to end up with the blood pressure problems which more or less lead to the heart attack.

So it drives me on. I will make a success of myself. Financial freedom well before 65 is a priority but like people have said if life does get in the way then so be it as I intend on living a good life with or without the wealth I aspire to achieve.

At least trying and tracking my spends/income I can't go far wrong from a positive position anyway. Ultimate goal really is being able to wake up one morning past 40 and just deciding, I am not going to work today...yet I still draw the same wage from a passive income.

MrsCautious

I can absolutely see where you are coming from and such an attitude will help you through the worst times as well as good. My income from work is modest by a lot of people's standards as the owner of a small business but it is a matter of pride that I have worked hard enough to be paid all the time I have been floored by devastating illness and loss. Build a good team around you - there I go again with stating the obvious.